ARBITRATION UNDER LMAA RULES

Foreword

In this age of international commerce, arbitration stands to be the ubiquitous way to resolve disputes, not just among commercial parties, but also between commercial parties and governments. In following the change towards globalization of world trade and investment, arbitration practices between different institutions in different countries have developed to become more harmonized. Thus, international arbitration practitioners who operate out of Vietnam, Singapore, England, Argentina,… find themselves already speaking procedural “languages” belonging to the same “language family”.

To follow this analogy, the “proto-language” of most, if not all, of the more recently established national arbitration centers around the world would be the Model Law issued by UNCITRAL. With the ever-present need for efficiency and minimizing judicial intervention during proceedings, one can expect that such harmonization between the rules of arbitration is going to continue in the future.

Notice of Arbitration

The LMAA Terms and Procedures, despite being trade-specific arbitration rules with no institution to actively enforce them, do not escape such winds of change. Initiating an LMAA arbitration also requires the service of a Notice of Arbitration containing skeletal information directly to the opposing party, as is the case with ad hoc arbitration in most institutions. The non-initiating party also has to serve their defenses and counterclaims within cumulative deadlines, which is also the case with arbitration in institutions around the world (i.e., VIAC.).

Both parties are entitled at any stage to ask each other for any documentation that they consider relevant but which has not been disclosed. If Parties cannot agree on such discovery, the Tribunal can exercise its rights to demand submission.

Applicable Law

It is common at this stage for arbitration clauses to both grant jurisdiction to LMAA ad-hoc arbitration and to determine English law as substantive law. The latter part presents challenges that are unfamiliar to non-English claimants, because they are initiating arbitration in a common law jurisdiction which follows a contrastingly different system compared to civil law. It is not easy, in this case, to understand how arbitration should proceed, how to strategize the dissemination of info among the claims and the submissions, and how to narrate such a strategy to life before a panel of legal experts. All are tall orders even with home advantage, and to non-English parties the struggle can only be more taxing.

Our trusted lawyers at ANHISA have emerged as the premier legal counsel for maritime arbitration. In our practical cases, we have advised and provided assistance to the owners of two vessels in their claims against a common charterer who defaulted on their settlement payment. The claim was to be settled by arbitration in London, under LMAA procedural law and pursuant to English substantive law. With our first-hand involvement in proceedings before an ad-hoc arbitral tribunal under LMAA Terms, we strive with our utmost effort to find the right points of contention, build a strong case for our clients, and create a thorough system of supporting arguments. Our ultimate goal is to provide clients with an outcome that is favorable to our clients.

ANHISA LLC AND OUR EXPERTISE

ANHISA LLC is a boutique law firm specializing in Dispute Resolution, Shipping and Aviation. Being the leading lawyers in various fields of law, our qualified, experienced, and supportive team of lawyers know how to best proceed with a case against or in relation to Vietnamese parties and are well equipped to provide clients with cost-effective and innovative solutions to their problems.

Regarding dispute resolution, we have represented Vietnamese and foreign clients in the resolution of disputes involving maritime, construction, commercial and civil matters. Our lawyers are well-equipped to offer services on a wide range of disputes and conflicts, whether cross-border or purely domestic, to appear before any Judges or Arbitral Tribunals. The firm is prepared to assist clients in designing the appropriate dispute resolution procedure to help resolve conflicts as efficiently and cost effectively as possible, which may involve combining elements of mediation and other methods such as arbitration.

AUTHORS

DANG VIET ANH

Managing Partner

Mobile: (+84) 983 467070

Email: anh@anhisa.com

NGUYEN THI TUYET MAI

Senior Associate

Mobile: (+84) 939 117398

Email: mai@anhisa.com

This article aims to furnish our clients and contacts with general information on the relevant topic for reference purposes only, without creating any duty of care on the part of ANHISA. The information presented herein is not intended to serve, nor should it be considered, as a substitute for legal or other professional advice.