(1) Challenge of the amount of arbitrators’ fee fixed by the arbitrators
in an international ad hoc arbitration.
(2) VAT on arbitrators’ fees.
(1) Under the 1972 Danish Arbitration Act, in the absence of
stipulations in the Terms of Reference, or any other agreement,
how the fees were to be fixed; the Arbitral Tribunal was entitled
to fix its fees in compliance with the standard prevailing in
international commercial arbitration.
(2) Danish tax authorities exempt arbitrators’ fees from VAT since
the arbitrators do not engage in economic activity.
Claimant: KVM Industrimaskiner A/S (Denmark)
Respondents: 1. Construction Acton Vale Ltd (Canada)
2. Maître J. (Chairman of the arbitral tribunal)
3. Professor L (arbitrator)
4. Judge H (arbitrator)
Place of Court Proceedings:
Danish Arbitration Act of 1972
Excerpts below are an unofficial translation of the proceedings before
The Proceedings Before the Court
“This case concerns the scrutiny of the fees as decided by the Arbitral
Tribunal of the case: Ad Hoc Arbitration Construction Acton Vale Ltd.,
Canada (claimant) against KVM Industrimaskiner A/S, Denmark