Use Of Expert Determination Mechanisms

Introduction

Expert determination is a binding form of dispute resolution that is often used in matters of a technical nature. In addition to technical expertise, expert determination can provide for a quicker and more cost effective means of determining a dispute than a court or arbitral process.

Expert determination is a mechanism used in a number of commercial agreements. For example, it may be used in share purchase agreements to resolve disputes in relation to completion accounts. In the joint venture context, it may be used, particularly in forced sale situations, where it is necessary to determine the value of shares but the shareholders cannot reach agreement between themselves. Such expert determination mechanisms are employed for specific purposes and are additional to an overall dispute resolution regime which ultimately provides for arbitration or litigation in relation to other disputes. There are important factors that parties need to consider when