New LMAA Terms Coming Into Effect 1 May 2017
The LMAA has published new Terms and Procedures which will apply to arbitration proceedings commenced on or after 1 May 2017.
Key differences between the LMAA 2017 terms and the previous (2012) version are:
LMAA Terms 2017: Previous Position/Extent of change: Specific reference is now made to s. 17 Arbitration Act 1996 (the "Act"), permitting appointment of a sole arbitrator in circumstances where the other party fails to appoint an arbitrator. (Paragraph 10). Subject to agreement to the contrary. The previous position remains essentially unchanged; clarification only. Provision is made for the appointment of a sole arbitrator by the President of the LMAA (for a fee) where there has been a failure to comply with an arbitration agreement providing for arbitration by a sole arbitrator. (Paragraph 11). In the absence of agreement, the current position is that an application would need to be made to the Court for the appointment of an Arbitrator under s. 18 of the Act. Arbitrators have been granted an express power to implement time limits for service of submissions which may be abbreviated or modified in concurrent proceedings. (Paragraph 16 (b) (i)). No previous equivalent term - such power may have been exercisable by a tribunal under its general case management powers. LMAA Terms 2017 - First Schedule: Clarity has been given as to the timing of a request by the tribunal for security for its costs and the time for provision of such security. Security to be requested whenever a tribunal considers it appropriate. (Section (E) Paragraphs 1 to 4). Previously security was to be provided no later than 21 days before the start of any oral hearing intended to lead to an award (or before tribunal started reading in documents only arbitration). Failure to comply with a security for costs order for the tribunal's costs enables tribunal to make a peremptory order pursuant to s. 41 of the Act. Failure to comply with such an order can lead to dismissal of a claimant's claim. (Section (E) Paragraph 8). No previous equivalent term - such power may have been exercisable by a tribunal under its general case management powers. LMAA Terms 2017 - Second Schedule: Exhibits to submissions must now be served on all other parties. (Paragraph (1)). The Schedule did not specifically state that documents exhibited to submissions must be served on other parties, although this was generally the practice. Following service of a reply (or a reply to defence to...
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