Arbitral Proceedings in Maritime Cases
Arbitral Proceedings in Maritime Cases
1. Starting the Arbitration
Arbitration Agreement / Clause:
Most maritime contracts (charter parties, shipbuilding contracts, bills of lading) include an arbitration clause specifying arbitration as the dispute resolution method, the governing rules (like LMAA), seat/venue, language, and number of arbitrators.
Notice of Arbitration:
The party initiating arbitration serves a Notice of Arbitration to the other party, detailing the dispute, claims, and appointment of arbitrator (if agreed).
2. Constitution of the Tribunal
Appointment of Arbitrators:
Typically, a three-member tribunal is appointed: one arbitrator from each party and a presiding arbitrator agreed upon or appointed by the arbitration institution.
In some cases, a sole arbitrator is appointed.
The arbitrators are usually maritime law experts or professionals with shipping experience.
Jurisdiction Confirmation:
The tribunal confirms its jurisdiction (i.e., that it has the power to hear the case).
3. Preliminary Meeting / Procedural Orders
The tribunal holds a preliminary conference to set out:
Timetable for submissions
Discovery and evidence rules
Hearing dates and format
Confidentiality and other procedural matters
4. Submission of Claims and Defenses
Statement of Claim:
The claimant submits detailed claims, facts, legal basis, and evidence.
Statement of Defense:
The respondent replies with defenses and counterclaims (if any).
Further Submissions:
Replies and rejoinders may follow as the case develops.
5. Evidence and Hearings
Documentary Evidence:
Contracts, correspondence, invoices, expert reports, etc.
Witness Statements and Testimonies:
Witnesses of fact and experts (e.g., marine surveyors) may give written and oral evidence.
Hearings:
Usually held in the agreed seat (e.g., London for LMAA arbitrations).
They can be in-person, virtual, or hybrid.
6. Closing Submissions
Parties summarize their positions, emphasizing key evidence and legal arguments.
7. Deliberation and Award
The tribunal deliberates and issues a final award:
Decides on claims, counterclaims, damages, costs.
The award is binding and final.
Can include interest, costs of arbitration, and legal fees.
8. Enforcement of Award
Awards can be enforced internationally under the New York Convention (1958), allowing recognition in more than 170 countries.
Enforcement may require court intervention in the respondent’s country if the losing party does not comply voluntarily.
Key Features of Maritime Arbitration Proceedings
| Feature | Details |
|---|---|
| Typical arbitration rules | LMAA, ICC, UNCITRAL, SCMA |
| Tribunal composition | Usually 1 or 3 arbitrators, experts preferred |
| Procedural flexibility | Parties and tribunal control procedure |
| Confidentiality | Proceedings generally confidential |
| Evidence standards | Less formal than courts, but thorough |
| Duration | Often 6-12 months, depending on complexity |
Example
Dispute: Delay in delivery of goods causing demurrage claims.
Process: Arbitration under LMAA rules initiated by shipowner.
Tribunal: Three arbitrators appointed; one nominated by each party and one presiding arbitrator agreed upon.
Outcome: Tribunal awarded damages to shipowner, considering contractual clauses and expert testimonies.
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