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Arbitration may offer a better way
of resolving maritime disputes since
it would be generally easier to get
arbitrators with specialised
knowledge shipping matters than a
High Court judge.
Arguing that arbitration is a well
recognised alternative to litigation
through the court system, a leading
shipping lawyer from UK, Nicholas
Woo, said arbitrators generally have
experience in this specialised
industry, this is perhaps why the
shipping industry generally prefers
arbitration.
"Arbitration is also used to
overcome some of the perceived
disadvantages of litigation, such as
high costs and slow speed," he told
participants at a seminar held at
the Malaysian Maritime Institute
recently.
Woo, from one of worldwide leading
law firms, Richards Butler (UK) said
the law relating to arbitration in
England has been codified in the
Arbitration Act 1996. This must be
applied to all arbitrations
commenced after 31st January 1997.
He noted that the objects of
arbitration are to obtain the fair
resolution of disputes by an
impartial tribunal without
unnecessary delay or expense.
The London Maritime Arbitrators
Association is based in London and
conducts maritime arbitration claims
(other than salvage claims under the
Lloyd's Open Form).
The Arbitration Act 1996 applies but
as not all sections of the Act are
mandatory the LMAA has added a
further gloss by introducing terms
by which their arbitrations should
be conducted and which became
applicable on 1st January 2002.
He said the new terms are intended
to "assist in the speedier and more
economical resolution of disputes.
The Terms will be applied whenever
the parties agree that they will
apply and there will be a strong
presumption of agreement if the
arbitrators appointed are full
members of the LMAA.
Woo said once it was clear that a
dispute can not be resolved between
the parties it is first necessary to
make sure that there is an agreement
to arbitrate.
"This is normally provided for in
the relevant Charterparty or Bill of
Lading. Most Arbitration clauses
will provide for arbitration in
England with English law to apply,"
he said.
He said the arbitration clause may
provide for a particular form of
tribunal or this may be agreed
subsequently between the parties.
There are formal requirements must
be fulfilled to validly appoint an
arbitrator and once appointed an
appointment fee must be paid by the
appointing party. This is a standard
fee fixed by the LMAA, currently at
£100.00 per appointment.
Woo said once the tribunal has seen
all the submissions and evidence
whether in document form only or by
way of a hearing it is then up to
them to make a decision as to who
will be awarded the claim.
"The Award will usually be available
6 weeks after the close of
proceedings and the Terms say that
in many cases this period should be
shorter. The parties will be
notified of the availability of the
Award by the tribunal, but it will
not be released until the fees and
expenses of the tribunal have been
paid in full," he said.
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