Conducting small
maritime
arbitrations
Dr Sarah C Derrington
Marine & Shipping Law Unit
T C Beirne School of Law
University of Queensland
LMAA (2006) Small Claims
Procedure
When does it apply?
When the parties agree
Generally when neither the claim nor any
counterclaim exceeds US$50 000 excluding
interest and costs
Where the issues involved are not particularly
complex
The reference is to a sole arbitrator
If the parties cannot agree, application is made
to the President of the LMAA for the appointment
of a suitably qualified arbitrator
The names of all arbitrators proposed by either
party are to be disclosed so that no one is
appointed who has been proposed by one of the
parties
Timetable for Arbitration
14 days after arbitrator agrees to act
Letter of claim + all relevant documents including experts’ reports
to respondent & Arbitrator (+ fee)
28 days after receipt of letter of claim or appointment of
arbitrator
Letter of defence and details of any counterclaim plus all relevant
documents & experts’ reports
21 days later
Letter of reply and defence to counterclaim
The arbitrator can refuse to admit additional evidence at this
stage if it should have been delivered with the claim
14 days later
letter of reply to the defence to the counterclaim if necessary
Any non-compliance with time limits can lead to the award
being proceeded with in the absence of further documents.
The arbitrator can extend time period for a maximum of 14
days
Pleadings submitted subsequent to the expiry of a time limit
set by an arbitrator's notice inadmissible
No further pleadings shall be considered by the arbitrator
once the arbitrator has declared pleadings to be closed
No hearing unless, in exceptional circumstances, the
arbitrator requires it
If an oral hearing is required time is limited to one working
day
All communications can be done by letter, telex, fax or email
Legal representation is NOT excluded
Disclosure of Documents
No disclosure – arbitrator may order production
of a document if in the opinion of the arbitrator a
party has failed to produce a relevant document
Failing such production, the arbitrator can
assume the document does not favour the
party’s case
“relevant document” includes all documents
relevant to the dispute except those which are
not legally disclosable
General principles relating to the conduct of
proceedings
Principles of natural justice
Adequate notice
Both parties must be heard and be entitled to answer any
allegation or question put
Must be heard impartially and without bias
Court’s supervisory role – FCA s.53AB
Compulsion of witnesses – application to the court
Can require evidence to be on oath, orally or on affidavit
Arbitrator may inform himself as he sees fit and may use
own expert knowledge
Rules of evidence
generally don’t apply strictly unless parties agree
otherwise but consider…
Remoteness or insufficiency of evidence
Side issues or multiplicity of issues being raised
to cloud main issue
Danger of manufactured evidence
Whether prejudicial effect might outweigh
probative value
Whether probative value is outweighed by undue
delay, waste of time, needless presentation
Whether evidence has been improperly obtained
The Award
To be published within one month of the date on
which all relevant documents were received or of
the close of any oral hearing
Only brief reasons will be given
No appeal (except in relation to a ruling by an
arbitrator as to his own jurisdiction)
Fees and costs
£100 for appointment of arbitrator by LMAA
Payment of arbitrator's fee is a precondition to
the commencement of the arbitration
£1500 plus £750 for any additional counterclaim
£2000 cap on recoverable legal costs (no
discretion in the arbitrator to vary this amount
unless both parties agree)
Challenges to jurisdiction should be paid for on a
quantum meruit basis and be paid by the
claimant in the first instance
Discretion
Arbitrator may vary or depart from the procedure
as appropriate
If the Procedure is deemed inappropriate it shall
cease to apply in its entirety
International Arbitration Act 1974
Gives effect to the
UNCITRAL Model law on International
Commercial Arbitration
Convention on the Recognition and Enforcement
of Foreign Arbitral Awards (New York Convention)