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

FeatureDetails
Typical arbitration rulesLMAA, ICC, UNCITRAL, SCMA
Tribunal compositionUsually 1 or 3 arbitrators, experts preferred
Procedural flexibilityParties and tribunal control procedure
ConfidentialityProceedings generally confidential
Evidence standardsLess formal than courts, but thorough
DurationOften 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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