Arbitration Clauses Under Dutch Law

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An arbitration clause under Dutch law is an agreement in which parties submit future disputes to arbitration instead of the courts (Article 1020(1) and (2) DCCP). The Dutch Arbitration Act, Book 4 of the Dutch Code of Civil Procedure (Wetboek van Burgerlijke Rechtsvordering), governs it. Written form is not a condition for validity, but the clause is proven by a written document (Article 1021).

If a dispute covered by the clause is brought before a Dutch court and a party invokes the clause before all other defences, the court declares that it has no jurisdiction, unless the clause is invalid (Article 1022 DCCP). Our Dutch law firm for arbitration explains what a clause should contain and how courts and arbitral tribunals deal with it. Our team also advises on liability partnership under Dutch law.

Key Takeaways

  • An arbitration clause covers disputes that may arise in the future; a submission agreement (compromis) covers an existing dispute (Article 1020(2) DCCP).
  • The Dutch Arbitration Act, part of the Dutch Code of Civil Procedure, governs the legal framework for arbitration in the Netherlands.
  • A dispute cannot be arbitrated insofar as the arbitration would determine legal consequences that are not at the free disposal of the parties (Article 1020(3) DCCP).
  • The arbitration agreement is proven by a written document that the other party accepted expressly or tacitly (Article 1021). A Dutch award can only be enforced after the court has granted leave for enforcement (Article 1062).

What is an arbitration clause under Dutch law?

Dutch law does not make written form a condition for the validity of an arbitration clause. Article 1021 DCCP is a rule of evidence: the arbitration agreement is proven by a written document. A document that provides for arbitration, or that refers to general terms and conditions providing for arbitration, is sufficient if the other party accepted it expressly or tacitly.

The arbitration agreement can also be proven by electronic data; Article 6:227a(1) of the Dutch Civil Code applies by analogy (Article 1021). In practice, an exchange of e-mails or an electronically accepted contract can therefore serve as proof. We regularly assist clients with supplier director jointly liable under Dutch law.

When drafting an arbitration clause, state at least which disputes it covers, which arbitration rules or institute apply, the number of arbitrators, the place of arbitration and the language. Arbitration rules referred to in the clause form part of the arbitration agreement (Article 1020(6)). The place of arbitration matters: the Dutch Arbitration Act applies if it is in the Netherlands (Article 1073(1)), and if the parties do not choose it, the arbitral tribunal does (Article 1037(1)). A tribunal must have an odd number of arbitrators (Article 1026(1)).

An arbitration clause in articles of association or regulations that bind the parties also counts as an arbitration agreement (Article 1020(5)).

What does a Dutch arbitration clause look like?

NAI model arbitration clause

The Netherlands Arbitration Institute (NAI) recommends a basic clause that refers all disputes to arbitration under the NAI Arbitration Rules, and also recommends including a place of arbitration. Its clause generator lets you add, among other things, the place of arbitration, the language and an exclusion of consolidation under Article 1046 DCCP, for example:

“All disputes arising in connection with the present agreement, or further agreements resulting therefrom, shall be settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute. The place of arbitration shall be Amsterdam. The proceedings shall be conducted in the English language. Consolidation of the arbitral proceedings with other arbitral proceedings, as provided for in Article 1046 of the Dutch Code of Civil Procedure is excluded.”

NCC model arbitration clause

The NCC recommends using this Dutch law model provision for arbitration:

“All disputes arising in connection with the present agreement, or further agreements resulting therefrom, shall be settled in accordance with the arbitration rules of [arbitration institute]. The place of arbitration shall be Amsterdam (the Netherlands). The proceedings shall be conducted in English. Any court proceedings in the Netherlands before, during or after the arbitration will – to the extent allowed by law – exclusively be dealt with by the Amsterdam District Court or the Amsterdam Court of Appeal, whichever has jurisdiction, following proceedings in English before the Chambers for International Commercial Matters (Netherlands Commercial Court, which consists of the NCC District Court, the NCC Court in Summary Proceedings and the NCC Court of Appeal). The NCC Rules of Procedure (see www.ncc.gov.nl) apply to these proceedings. This clause is not intended to exclude Supreme Court appeal.

Arbitration in the Netherlands is governed by the Dutch Arbitration Act: Book 4 (Articles 1020-1076) of the Dutch Code of Civil Procedure (Wetboek van Burgerlijke Rechtsvordering). Title 1 (Articles 1020-1073) deals with arbitration in the Netherlands, Title 2 (Articles 1074-1076) with arbitration outside the Netherlands. Article 1077, which follows, is a general final provision of the Code and does not concern arbitration.

Consider these key insights:

  • No form is required for validity, but the arbitration agreement is proven by a written document (Article 1021). Relying on a purely oral agreement to arbitrate is therefore risky.
  • The Netherlands Arbitration Institute (NAI), along with other arbitration institutions like the International Chamber of Commerce (ICC) and the Permanent Court of Arbitration, provide specific rules and procedures for arbitration.
  • Arbitrators are appointed in the way the parties agreed, for example by an institution (Article 1027(1)). An arbitrator can be challenged if there is justifiable doubt as to his or her impartiality or independence (Article 1033(1)).
  • The Dutch Arbitration Act governs the arbitration process as well as the enforcement and annulment of arbitral awards. This provides a well-rounded, reliable structure for dispute resolution.

Understanding this framework is vital to working with arbitration in the Netherlands.

What is the difference between domestic and international arbitration?

The Dutch Arbitration Act does not distinguish between domestic and international arbitration. Title 1 applies whenever the place of arbitration is in the Netherlands (Article 1073(1)), whatever the nationality or seat of the parties.

If the arbitration agreement provides for arbitration outside the Netherlands, a Dutch court still declares that it has no jurisdiction if a party invokes the agreement before all other defences, unless the agreement is invalid under the law applicable to it (Article 1074).

The law that applies to the merits of the dispute is a separate question. The arbitral tribunal decides according to the rules of law chosen by the parties or, failing a choice, the rules of law it considers appropriate; it decides as amiable compositeur only if the parties have authorised it to do so, and it always takes applicable trade usages into account (Article 1054). Institutions such as the Netherlands Arbitration Institute (NAI) or the International Chamber of Commerce (ICC) provide their own procedural rules.

Arbitration clause interpretation under Dutch law focuses on the wording and context, ensuring they align with the parties’ expectations and legal requirements. When drafting an arbitration agreement under Dutch law, you must consider the nature of the dispute, the involved parties, and the level of international recognition and enforcement desired.

International arbitration in the Netherlands offers flexibility. It allows you to select arbitrators, procedures, and governing laws best suited for cross-border disputes resolution in the Netherlands.

Which disputes can be arbitrated in the Netherlands?

In the Netherlands, an arbitration agreement may not lead to legal consequences that are not at the free disposal of the parties (Article 1020(3) DCCP). An arbitral tribunal cannot, for example, declare a company bankrupt or decide on a person’s civil status. Commercial disputes about money or performance under a contract can, as a rule, be arbitrated.

This is a key aspect of Dutch arbitration law, placing restrictions on arbitrability to protect the integrity of legal proceedings.

A Dutch court assesses an arbitration clause in particular if a party invokes it in court proceedings (Article 1022), when leave for enforcement of an award is requested (Article 1063(1) with Article 1065(1)(a)) or when a party challenges an award. Here are some key points to remember:

  • The test is whether the legal consequences are at the free disposal of the parties (Article 1020(3)). The objection that a dispute is not arbitrable is not lost if it is raised late (Article 1052(2)).
  • Dutch Arbitration Act sets forth the boundaries for arbitrability. Your arbitration clauses must respect these restrictions.
  • A court can set aside an award if there is no valid arbitration agreement, or if the award or the way it was made is contrary to public policy (Article 1065(1)(a) and (e)).
  • Drafting effective arbitration clauses requires a thorough understanding of the scope of arbitrability and the restrictions in Dutch law.

When is a Dutch arbitration agreement valid?

Under Dutch law, an arbitration agreement is valid without any particular form. Article 1021 DCCP only provides how it is proven: by a written document.

This rule of evidence makes it advisable to record the arbitration agreement in the contract itself or in a document that the other party has accepted.

A reference to general terms and conditions that provide for arbitration is acceptable. The document containing the reference must have been accepted by or on behalf of the other party, expressly or tacitly (Article 1021).

In today’s digital age, electronic means have their place in the validation process as well, serving as evidence of the arbitration agreement’s existence and acceptance. This could be as simple as an email confirmation or a digital signature.

Special rules apply to consumers. In a contract with a consumer, an arbitration clause in general terms and conditions is deemed unreasonably onerous, and can therefore be annulled, unless it gives the consumer at least one month, after the business has invoked the clause in writing, to choose the court that would have jurisdiction by law (Article 6:236(n) Dutch Civil Code; Article 6:233(a)). This black-list rule only covers clauses in general terms and conditions.

How do you object to the jurisdiction of an arbitral tribunal?

Jurisdiction objections can arise in two places. Before a Dutch court, the defendant must invoke the arbitration agreement before all other defences (Article 1022). Before the arbitral tribunal, a party can dispute the tribunal’s authority, usually because it considers that there is no valid arbitration agreement.

The rules for objections before the tribunal are in Article 1052 DCCP:

  • You’ll encounter jurisdiction objections when a party disputes the arbitral tribunal’s authority, often questioning the arbitration agreement’s validity.
  • The arbitral tribunal may rule on its own jurisdiction (Article 1052(1)). A decision in which it accepts jurisdiction can only be challenged together with a subsequent final or partial final award (Article 1052(4)).
  • A party that appears in the arbitration must object that there is no valid arbitration agreement before all other defences; otherwise it loses that objection, unless the objection is that the dispute is not arbitrable (Article 1052(2)). A party that took part in constituting the tribunal cannot later object to its composition (Article 1052(3)).
  • If the tribunal declares that it lacks jurisdiction because there is no valid arbitration agreement, the ordinary courts have jurisdiction. If it declines jurisdiction on another ground, the arbitration agreement remains in force, unless the parties agreed otherwise (Article 1052(5)).

Keep these points in mind when working through Dutch arbitration. It’s a complex process, and understanding the arbitrators’ authority, the validity of arbitration agreements, and the implications of waiving jurisdiction objections can make a significant difference to how your arbitration turns out.

Which role do the parties play in Dutch arbitration?

The parties play a central role in Dutch arbitration. Subject to the mandatory provisions of the Act, the proceedings are conducted as the parties agreed; insofar as they did not agree, the arbitral tribunal decides (Article 1036(1) DCCP). The tribunal must treat the parties equally and give each of them the opportunity to put forward and explain its position (Article 1036(2)).

This central aspect of Dutch arbitration services allows you to exercise significant control over the arbitration process, enhancing its efficiency and effectiveness.

The parties can agree how arbitrators are appointed. An arbitrator can be challenged if there is justifiable doubt as to his or her impartiality or independence (Article 1033(1)); a party can only challenge an arbitrator it appointed itself for reasons that became known to it after the appointment (Article 1033(2)). The challenge must be notified in writing, with reasons, within four weeks after receipt of the arbitrator’s disclosure or, failing that, after the reason became known (Article 1035(1)). An arbitrator who is no longer able to perform the mandate, in law or in fact, can be released at the request of a party (Article 1029(4)).

Decisions in an arbitral award that has become final (kracht van gewijsde) have res judicata effect in other proceedings between the same parties (Article 1059(1)). This does not apply to decisions on interim relief (Article 1059(2)).

An award can only be enforced in the Netherlands after the preliminary relief judge (voorzieningenrechter) of the district court of the place of arbitration has granted leave for enforcement (exequatur) at the request of a party (Article 1062(1)).

Can third parties be joined to a Dutch arbitration?

Under Article 1046 DCCP, a party can ask a third party designated by the parties, such as an arbitration institute, to consolidate an arbitration pending in the Netherlands with other arbitral proceedings pending in or outside the Netherlands, unless the parties agreed otherwise. Without such a third party, the preliminary relief judge of the Amsterdam District Court can be asked to consolidate arbitrations that are both pending in the Netherlands.

Consolidation can be ordered insofar as it does not cause unreasonable delay and the proceedings are so closely connected that the proper administration of justice requires joint handling, to avoid irreconcilable decisions (Article 1046(2)).

A third party with an interest in the arbitration can ask the tribunal for permission to join or intervene, provided the same arbitration agreement applies, or comes into force, between the parties and the third party (Article 1045(1)). A party can likewise ask the tribunal for permission to call a third party in third-party proceedings (vrijwaring) on the same condition (Article 1045a(1)). The parties can agree otherwise on joinder and intervention.

If you want to exclude consolidation, or want group companies or subcontractors to be bound, say so in the clause. The NAI example above shows how consolidation can be excluded.

How is a Dutch arbitral tribunal appointed?

While understanding the fine detail of consolidation and third-party participation under Dutch arbitration law is important, it is equally important to grasp how the tribunal is appointed and what its duties are.

An arbitral tribunal has an odd number of arbitrators and may consist of a sole arbitrator (Article 1026(1)). If the parties agreed on an even number, those arbitrators appoint an additional arbitrator as chair (Article 1026(3)). Unless they were appointed earlier, the arbitrators must be appointed within three months after the arbitration has commenced; otherwise the preliminary relief judge appoints them at the request of a party (Article 1027(2) and (3)).

A person approached as arbitrator who suspects that he or she could be challenged must disclose this in writing, with reasons, before and after the appointment and during the proceedings (Article 1034). What if an arbitrator falls short?

  • You can challenge an arbitrator if there is justifiable doubt as to his or her impartiality or independence (Article 1033). An arbitrator who can no longer perform the mandate can be released, and a tribunal that performs its mandate in an unacceptably slow manner despite repeated reminders can be released at the request of a party (Article 1029(4) and (5)).
  • They determine their own jurisdiction, keeping the process autonomous and flexible.
  • Their main task is to decide the dispute in an award that binds the parties; enforcement in the Netherlands requires leave from the court (Article 1062).
  • This final award enforcement means that the resolution isn’t just symbolic—it has real-world impact.

Understanding these aspects helps you handle the arbitration process more effectively and protect your interests under Dutch arbitration law. The tribunal’s role isn’t to be underestimated—it can make or break your case.

Which arbitration institutes operate in the Netherlands?

In arbitration in the Netherlands, you’ll come across several established institutes that handle arbitration cases, including the Netherlands Arbitration Institute (NAI), the International Chamber of Commerce (ICC), and the Permanent Court of Arbitration in The Hague.

Each of these institutions has its own set of arbitration rules and procedures, which are designed to ensure a fair and efficient arbitration process.

The NAI is a Dutch institute that administers arbitrations under the NAI Arbitration Rules. Its website offers a recommended model clause, a clause generator and a calculator for the costs of an arbitration.

The ICC is an international organisation that administers arbitrations under its own ICC Arbitration Rules. Parties can choose ICC arbitration with a place of arbitration in the Netherlands.

The Permanent Court of Arbitration in The Hague administers disputes involving states, state entities, intergovernmental organisations and private parties.

What does arbitration in the Netherlands cost?

When you’re considering arbitration under Dutch law, it’s essential to factor in various costs, including arbitrator fees, administrative charges, and legal representation expenses. The total Netherlands arbitration costs can vary based on several factors.

  • The complexity of the case: Complex cases require more time and expertise, increasing the arbitration fees in the Netherlands.
  • The number of arbitrators: More arbitrators mean higher costs, but it could provide a more balanced and fair judgment.
  • Duration of proceedings: Longer cases naturally incur more expenses.
  • Specific arbitration cost-sharing arrangements: Parties can agree to share costs equally, allocate them based on outcome, or follow the arrangements in their arbitration agreement.

The Dutch Arbitration Act contains no specific rules on the allocation of costs. The parties can regulate costs in the arbitration agreement or by choosing institutional rules; otherwise the arbitral tribunal decides. The NAI website has a calculator for the costs of an NAI arbitration.

Is third-party funding allowed in Dutch arbitration?

Beyond just understanding the costs associated with arbitration in the Netherlands, it’s also important to consider the role of third-party funding in arbitration, a mechanism that can significantly influence the financial dynamics of dispute resolution.

Third-party funding involves an external entity shouldering the costs of arbitration proceedings, in exchange for a share of the proceeds if the case is successful.

The Dutch Arbitration Act contains no rules on third-party funding. Whether a funding arrangement must be disclosed depends on the agreed arbitration rules and on orders of the tribunal. A relationship between an arbitrator and a funder may be a circumstance that the arbitrator has to disclose under Article 1034.

Funding can make it possible to bring a claim that a party could not otherwise afford. Check what the funding agreement says about the funder’s share of the proceeds and about its influence on a settlement.

How is an arbitral award enforced in the Netherlands?

An arbitral award made in the Netherlands can only be enforced after the preliminary relief judge of the district court of the place of arbitration has granted leave for enforcement (exequatur) at the request of a party (Article 1062(1) DCCP).

Our page on enforcement of arbitral awards in the Netherlands explains the procedure in more detail.

Foreign arbitral awards are recognised and enforced under Article 1075 DCCP if a treaty applies, in particular the New York Convention of 1958, or under Article 1076 DCCP if no treaty applies.

Here are a few noteworthy aspects of the enforcement process:

  • The judge can only refuse leave if, after a summary examination, it appears likely that the award will be set aside or revoked, or if a penalty payment was imposed contrary to Article 1056, in which case only enforcement of the penalty is refused (Article 1063(1)). If the period for a claim to set aside has expired unused, leave can only be refused if it appears likely that the award is contrary to public policy (Article 1063(2)).
  • The New York Convention (1958) aids in the recognition and enforcement of foreign arbitral awards.
  • A final or partial final award can only be challenged by setting aside or revocation (Article 1064). A claim to set aside is brought before the Court of Appeal within three months after the award was sent or, if the parties agreed on filing with the court registry, after it was filed; if the award is served with leave for enforcement, the other party can still bring the claim within three months after service (Article 1064a(1) and (2)) and can only succeed on the grounds listed in Article 1065(1).
  • A claim to set aside does not suspend enforcement, but the court deciding on it can suspend enforcement at a party’s request (Article 1066(1) and (2)).

Is arbitration confidential under Dutch law?

Not automatically. The Dutch Arbitration Act does not impose a general duty of confidentiality on the parties or the arbitrators. It only provides that no copy or extract of an award filed with the district court registry is given to third parties (Article 1058(4) DCCP). Filing is only required if the parties agreed to it (Article 1058(1)(b)).

Institutional arbitration rules may contain confidentiality provisions, so check the rules you choose. If confidentiality matters to you, agree on it expressly in the arbitration clause, including who is bound (parties, arbitrators, witnesses and experts).

Even if confidentiality was agreed, the award may become known in court proceedings on leave for enforcement or setting aside (Articles 1062 and 1064a).

Breach of an agreed confidentiality obligation is a breach of contract and can lead to a claim for damages. It is not, as such, one of the grounds on which an award can be set aside (Article 1065(1)).

Frequently asked questions about arbitration clauses under Dutch law

What is the Dutch Arbitration Act?

The Dutch Arbitration Act (Netherlands Arbitration Act) is Book 4 of the Dutch Code of Civil Procedure, Articles 1020-1076. Title 1 applies when the place of arbitration is in the Netherlands (Article 1073(1)); Title 2 deals with arbitration outside the Netherlands, including the recognition and enforcement of foreign awards (Articles 1074-1076).

Does an arbitration agreement have to be in writing under Dutch law?

No, written form is not a condition for validity. The arbitration agreement is, however, proven by a written document, such as a contract or general terms and conditions providing for arbitration that the other party accepted expressly or tacitly. Electronic data can also serve as proof (Article 1021 DCCP).

What is the Netherlands Arbitration Institute (NAI)?

The NAI is a Dutch institute that administers arbitrations under the NAI Arbitration Rules. It recommends a basic model clause that refers all disputes to arbitration under those rules, and recommends adding a place of arbitration. Arbitration rules referred to in an arbitration agreement form part of that agreement (Article 1020(6) DCCP).

Is a pre-dispute arbitration clause binding on consumers in the Netherlands?

Not automatically. An arbitration clause in general terms and conditions used against a consumer is deemed unreasonably onerous, and can be annulled, unless it gives the consumer at least one month, after the business invoked the clause in writing, to choose the competent court instead (Article 6:236(n) and 6:233(a) Dutch Civil Code). Between businesses, this black-list rule does not apply.

Can you appeal an arbitral award in the Netherlands?

Only if the parties agreed on an arbitral appeal (Article 1061b DCCP). Otherwise a final or partial final award can only be challenged by setting aside or revocation (Article 1064). A claim to set aside is brought before the Court of Appeal in principle within three months after the award was sent (or filed, if filing was agreed, or served with leave for enforcement: Article 1064a(2)), and a lawyer is required there (Article 79(2)); in the arbitration itself, a lawyer is not mandatory (Article 1038(1)).

Primary sources

When should you engage a Dutch arbitration lawyer?

It is worth involving a lawyer before you sign a contract with an arbitration clause, and as soon as a dispute arises, because objections must be raised before all other defences (Articles 1022 and 1052). For any legal inquiries or support in the Netherlands, please feel free to contact our team at MAAK Advocaten.

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