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by
CLIVE ASTON LMAA Arbitrator
Naples 2012
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A good claim has no value if it is time barred LMAA Terms do NOT impose time bar English law – 6 years Contract: -
Time to submit documentsSpecified periodClause Paramount
1. KNOW YOUR TIME BAR
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Number of arbitrators – 1, 2 or 3 Days to appoint – Default (21 days), 14 or 7 Tanker charter issues:
Asbatankvoy – claimant has pays for 3 arbitratorsArbitration in London, English law to apply
2. HAVE A GOOD ARBITRATION CLAUSE
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Including a London arbitration clause does not mean that English law will apply to the contract
Include some reference like “English law shall apply to this contract”
CLIVE ASTON - LMAA ARBITRATOR
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4. NO IMMEDIATE NEED TO APPOINT FULL TRIBUNAL
Deferring the appointment of a third arbitrator or umpire saves cost and makes eventual choice of third arbitrator more appropriate
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Will still be impartial
May help to increase speed and reduce cost of arbitration, particularly for the more modest size claims
CLIVE ASTON - LMAA ARBITRATOR
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Check arbitration clause requirements
Who to give notice to (P&I Clubs and brokers may not have authority to receive notices)
What to include
State who appointed and contact details Make clear opponents required to appoint arbitrator Number of notices required?
Specified in contract One 14 day notice followed by one 7 day notice
6. NOTICE OF ARBITRATION
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Arbitrators: -
Cannot order security for claim
Can order a claimant (or counterclaimant) to provide security for costs where need for such security shown
7. SECURITY FOR COSTS
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Most cases decided on documents alone
Oral hearingpersonal evidenceexpert evidencecomplex legal or factual issues involved
CLIVE ASTON - LMAA ARBITRATOR
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9. COSTS
Usually costs follow the event
Discreet costs orders
Winner may not recover all
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10. CONDUCT OF ARBITRATION
Limit involvement of arbitrators Avoid speculative arguments Admit facts Personal contact Consider settlement and review regularly Stay rational
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“IF WE KNEW WHAT THE OWNERS MEANT BY THEIR FAX WE WOULD RESPOND….
BUT AS WE DON’T WE CAN’T….
BUT IN ANY EVENT, WE DENY IT”
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“DEALING WITH THESE CHARTERERS IS LIKE PLAYING CHESS WITH A GORILLA”
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“PLEASE WOULD THE CHARTERERS’ SOLICITORS ADVISE US OF THE IDENTITY OF THE CASE HANDLER AT THEIR OFFICE SO THAT WE CAN PHONE THEM TO TELL THEM WHAT WE REALLY THINK OF THEIR MESSAGE”
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“WE SHOULD BE GRATEFUL IF THE TRIBUNAL COULD EXPLAIN ITS THINKING…..
IF INDEED IT IS THINKING”