The London Maritime Arbitrators Association (LMAA) issued a new arbitration clause, which is said to be similar to the BIMCO Standard Dispute Resolution Clauses. The default figure for the LMAA Small Claims Procedure to apply is US$100,000 or less. Parties can opt in to arbitration under the LMAA Intermediate Claims Procedure in cases involving claims between US$100,000 and US$400,000. These amounts can be amended by agreement should the parties wish.
The new clause addresses the service of arbitration notices and provides for the service of notices of arbitration by email.
In the possibility that the clause is used in a charterparty, then during the fixture both parties should enter the correct email addresses they wish to receive notices and any communications in relation to arbitration proceedings to be sent.
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The above includes any emails that provide notice of commencement of arbitration as well as emails discussing the appointment of an arbitrator. If there are any changes to email addresses, then the charterparty should be amended to reflect this; This should avoid the kind of problems that have arisen in a number of recent cases, where one party disputes whether an email notice of arbitration was validly served, on the basis either that the addressee was not authorised to accept service or was otherwise not the correct party to which to give notice.
Steamship Mutual advises that when concluding a fixture, owners and charterers should give consideration to the default position in the standard charterparty form as to the dispute resolution and whether those provisions require amendment.
Concluding, the Club alerts those interested to always be aware of the time limit for commencing arbitration approaching, as the possibility of failing to serve the effective notice, the claim could become time barred.
