The LMAA Terms 2021

Updated Terms of Procedure

The London Maritime Arbitrators Association (LMAA) has updated its terms of procedure, which came into effect on 1st May 2021. The revised terms, which update the 2017 terms, apply to arbitral proceedings commenced on or after 1st May 2021. Updates have been made to the LMAA Terms, the LMAA Small Claims Procedure (SCP) and the LMAA Intermediate Claims Procedure (ICP). Noteworthy updates to the main LMAA Terms are summarised in this article.

Failure to Appoint an Arbitrator: Paragraph 10, LMAA Terms 2021

In the event that the party that has not commenced the proceedings fails to appoint an arbitrator (where there are to be three arbitrators or two arbitrators and an umpire) notice need no longer be served on that party by the other party stating its intention to appoint a sole arbitrator unless an appointment is made within 7 days.

Appointment of a Substitute Arbitrator: Paragraph 12, LMAA Terms 2021

The updated terms now permit the President to appoint a substitute arbitrator in certain circumstances (resignation/death/incapacity of the arbitrator and unwillingness/inability of one or more of the parties to appoint a substitute) provided that an application is made and a notice is served. This new term does not however prevent the parties for applying for removal or substitution of arbitrator under section 18 of the Arbitration Act 1996.

Virtual or Part-Virtual Hearings: Paragraph 15, LMAA Terms 2021

Following the uptake of remote hearings, reference is now made to the LMAA Guidelines for the Conduct of Virtual and Semi‐Virtual Hearings which is set out as a Sixth Schedule to the terms.

Electronic Award: Paragraphs 23 and 24, LMAA Terms 2021

Awards may now be signed electronically and in counterparts (see paragraph 24). Parties will therefore need to be alert to whether an electronically signed award is enforceable in the relevant jurisdictions.

Breakdown of Costs in the Questionnaire: The Third Schedule to the LMAA Terms 2021

At paragraph 16 of the Questionnaire in the Third Schedule a note has been added which provides that a breakdown should be given, identifying separately, among other things, the actual/estimated fees of solicitors/consultants (and the number anticipated to be required), Counsel (and specifying whether senior or junior Counsel will be involved), and experts, including relevant charge out rates.

Checklist for Witness Statements and Expert Evidence: The Fourth Schedule to the LMAA Terms 2021

Guidelines have been added at sub-paragraphs 2(a) and 3(a) of the Checklist in the Fourth Schedule that provide that a witness statement should ideally be in the witness’s own words and should only contain evidence as to matters of fact which need to be proved by the evidence of the witness in relation to one or more issues of fact to be decided, and about which the witness has personal knowledge or recollection, and a witness statement should never be used to argue a case.

The new procedural rules can be accessed here.

Authored by Michael Dickin