ARBITRATION UNDER LMAA RULES

ARBITRATION UNDER LMAA RULES

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 developed to become more harmonized. Thus, international arbitration practitioners who operate out of Vietnam, Singapore, England, and 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 adhoc arbitration in most institutions. The non-initiating party also has to serve their defenses and counterclaim 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 strategie 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.

If you seek assistance in preparing for arbitration before the LMAA, please do not hesitate to contact us via:

ANHISA

Mr. Dang Viet Anh

Email: anh@anhisa.com

T: (+84) 28 5416 5873

M: (+84) 983 467070

Mr. To Vu Nhat Minh 

Email: minh@anhisa.com

T: +84 24 320 47609

M: +84 36 426 0088