DENMARK Law and Practice Contributed by: Anne Buhl Bjelke, Johannes Grove Nielsen, Camilla Hudson and Rasmus Schmidt, Bech-Bruun
Under Section 34 of the DAA, the arbitral tribunal determines its own fees and the settlement of its expenses, unless the parties and arbitrators have agreed otherwise. The parties are jointly and sever - ally liable for the costs of the arbitral tribunal (see also Article 42 of the DIA Rules). Under Section 35 of the DAA, the arbitral tribunal can allocate the proportion of costs each party will bear. Within 30 days of receiv - ing notice of the costs, any party may request that the national courts review the determination of the costs of the arbitral tribunal under Section 34 (3) of the DAA. The possibility for a party to petition the national courts to review the determination of the costs cannot be derogated from by agreement under Section 2 (2) of the DAA. In most cases, the losing party will, in the award, be required to bear (some of if not all) the legal costs of the winning party. However, the exact amount of legal costs recoverable for the winning party from its counterparty is at the discretion of the arbitral tribunal. There has in recent years been a growing tendency towards awarding legal costs closer to the actual amounts paid by the parties. When arbitral proceedings are filed with the DIA, Arti - cle 40 (1) of the DIA Rules stipulates that the award will state the costs of the arbitration and the proportion of costs to be borne by the parties. The arbitrator costs are to be determined on the basis of an appendix to the Rules under Article 41 and Appendix 2 to the DIA Rules. The award will also determine whether a party will compensate the other party for reasonable costs, including legal costs under Article 40 (3) of the DIA Rules.
specific grounds listed in Sections 37 and 39 largely overlap. 11.2 Excluding/Expanding the Scope of Appeal The parties can agree that an arbitral award is appeal - able. This agreement will derogate from the principal rule (see 11.1 Grounds for Appeal ). The parties cannot agree that Section 37 (grounds for setting aside the award) or Section 39 (refusing recognition or enforce - ment of the award) is not applicable (see Section 2 (1) of the DAA). 11.3 Standard of Judicial Review As mentioned in 11.1 Grounds for Appeal , the nation- al courts can, under specific circumstances, contest the validity of an arbitral award or refuse recognition or enforcement of the award. The grounds on which an arbitral award may be contested, or recognition/ enforcement refused, are very narrow according to Sections 37 and 39 of the DAA. Denmark adopted the New York Convention by rati - fying the Convention in 1972. Previously, the Danish implementing act set out a reservation to the applica - bility of the Convention. However, as of today, Den - mark’s domestic law fully incorporates the Conven - tion. 12.2 Enforcement Procedure Enforcement Procedure The matters of recognition and enforcement of awards are governed by Chapter 9 (Sections 38 and 39) of the DAA, which does not deviate substantively from Articles 35 and 36 of the UNCITRAL Model Law. The parties cannot agree to derogate from the applicability of these rules (see Section 2 (1) of the DAA). Subject to Section 39, an arbitral award is recognised as binding and is enforceable in line with the provi - sions regarding enforcement of judgments of the AJA, irrespective of the country in which it was made. This applies regardless of whether the award is made in a 12. Enforcement of an Award 12.1 New York Convention
11. Review of an Award 11.1 Grounds for Appeal
It is the principal rule in Denmark that arbitral awards are unappealable. However, the national courts can, pursuant to Section 37 of the DAA, set aside an arbi - tral award or, in line with Section 39 of the DAA, refuse recognition or enforcement of an award. Contesting the validity of an award or refusing to enforce it can only be done in line with the grounds specified in each section (see 12.2 Enforcement Procedure ). The
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