Appoint an independent expert, valuer or arbitrator
If you need to appoint an expert, valuer or arbitrator to settle a dispute you can apply to the President's Appointments Scheme (PAS) to make an independent appointment.
Often there is a dispute resolution clause in a contract that nominates the President of the ICAEW to make such an appointment in the event of a disagreement between the parties to the contract. In other cases the parties can apply jointly for an appointment to be made.
Once an application is received the ICAEW will select a suitably qualified member of its panel to carry out the appointment, bearing in mind any criteria specified in the application. The appointment will not be made until extensive conflict checks have been carried out.
In turn the expert, valuer, of arbitrator will agree their own terms and conditions, including fees, with the parties.
What is the difference between expert determination, valuation and arbitration?
An expert determination is when an expert (such as a chartered accountant) is appointed to decide points of disagreement between the parties to a dispute.
Typically an expert may be appointed to determine (among other things):
- Completion accounts
- Deferred considerations
- Earnings before interest and tax
- Valuation of shares
The parties will need to agree to be bound by the determination as it does not have the same enforceability as arbitration.
See also Forensic Group helpsheet: Expert determination and forensic accounting (PDF 140KB/3 pages).
This is a type of expert determination (see above).
Arbitration involves processes that are similar to a more formal court hearing but is held in private before an arbitrator. The arbitrator considers the testimony of the parties and any evidence submitted by them and then makes a binding decision that can be enforced just like a court judgement.
The Arbitration Act 1996 provides for a fair, cost effective and fast resolution of disputes and these are the fundamental principles that an arbitrator must consider throughout the arbitration process.
Mediation involves an independent person (the mediator) helping the parties negotiate a solution and relies on the parties’ agreement. A mediator has no decision making powers but facilitates communication and decision making.
Each party has an opportunity to express their case, what they consider to be the central issues and their desired outcome. The mediator will then assist in finding a settlement that all parties are happy with in order to bring the matter to a conclusion
How do I make an application?
To make an application you will need to complete an application form and submit this with an indemnity letter, a copy of the relevant contract (if applicable), the new client request form and the administration fee.
Further details of the application process and how the scheme works are available in the guidance notes and the application process document.
What will it cost?
There is an administration fee for making an appointment which varies depending on the amount in dispute.
If the amount in dispute is less than £1 million the fee is £500 +VAT. For disputes involving more than £1 million the fee is £1,000 + VAT.
The administration fee covers the costs involved in the selection and appointment of an appropriately qualified and experienced valuer, expert or arbitrator. In addition the parties to the dispute will need to pay the professional fees of the appointee.
Who is on the panel?
The panel comprises chartered accountants and solicitors who are experienced in expert determination, valuation, or arbitration. All panel members have provided to the ICAEW details of their relevant experience and knowledge, together with details of their charging rates. This information is reviewed annually to enable appropriate appointees to be selected based on up to date information and experience.
If you are interested in joining the panel please email email@example.com for further information.
Find out more
If you have any questions about the President’s Appointment Scheme please call us on +44 (0)1908 248 037 or email firstname.lastname@example.org