THE LMAA TERMS

(2006)

Effective for appointments on and after 1st January 2006

1

THE LMAA TERMS (2006)

PRELIMINARY

1. These Terms may be referred to as “the LMAA Terms (2006)”.

2. In these Terms, unless the context otherwise requires,

(i) “the Association” means the London Maritime Arbitrators Association;

“Member of the Association” includes full, retired and supporting members;

“President” means the President for the time being of the Association or, where he cannot act,

such other member of the Committee of the Association as he may designate;

(ii) “tribunal” includes a sole arbitrator, a tribunal of two or more arbitrators, and an umpire;

(iii) “original arbitrator” means an arbitrator appointed (whether initially or by substitution) by or

at the request of a party as its nominee and any arbitrator duly appointed so to act following

failure of a party to make its own nomination.

3. The purpose of arbitration according to these Terms is to obtain the fair resolution of maritime

and other disputes by an impartial tribunal without unnecessary delay or expense. The

arbitrators at all times are under a duty to act fairly and impartially between the parties and

an original arbitrator is in no sense to be considered as the representative of his appointor.

APPLICATION

4. These Terms apply to arbitral proceedings commenced on or after 1st January 2006. Section

14 of the Arbitration Act 1996 (“the Act”) shall apply for the purpose of determining on what

date arbitral proceedings are to be regarded as having commenced.

5. These Terms shall apply to an arbitration agreement whenever the parties have agreed that

they shall apply and the parties shall in particular be taken to have so agreed:

(a) whenever the dispute is referred to a sole arbitrator who is a full Member of the

Association and whenever both the original arbitrators appointed by the parties are full

Members of the Association, unless both parties have agreed or shall agree otherwise;

(b) whenever a sole arbitrator or both the original arbitrators have been appointed on the

basis that these Terms apply to their appointment.

Whenever a sole arbitrator or both the original arbitrators have been appointed on the basis

referred to at (b), such appointments or the conduct of the parties in taking part in the

arbitration thereafter shall constitute an agreement between the parties that the arbitration

agreement governing their dispute has been made or varied so as to incorporate these Terms

and shall further constitute authority to their respective arbitrators so to confirm in writing on

their behalf.

6. In the absence of any agreement to the contrary the parties to all arbitral proceedings to

which these Terms apply agree:

(a) that the law applicable to their arbitration agreement is English law; and

(b) that the seat of the arbitration is in England.

7. (a) Subject to paragraph (b), the arbitral proceedings and the rights and obligations of the

parties in connection therewith shall be in all respects governed by the Act save to the

extent that the provisions of the Act are varied, modified or supplemented by these Terms.

(b) Where the seat of the arbitration is outside England and Wales the provisions of these

Terms shall nevertheless apply to the arbitral proceedings, save to the extent that any

mandatory provisions of the law applicable to the arbitration agreement otherwise

provide.

THE ARBITRAL TRIBUNAL

8. If the tribunal is to consist of three arbitrators:

(a) each party shall appoint one arbitrator not later than 14 days after service of a request in

writing by either party to do so;

(b) the two so appointed may at any time thereafter appoint a third arbitrator so long as they

do so before any substantive hearing or forthwith if they cannot agree on any matter

relating to the arbitration, and if the two said arbitrators do not appoint a third within 10

working days of one calling upon the other to do so, the President shall, on the application

of either arbitrator or of a party, appoint the third arbitrator;

(c) the third arbitrator shall be the chairman unless the parties shall agree otherwise;

(d) before the third arbitrator has been appointed or if the position has become vacant, the

two original arbitrators, if agreed on any matter, shall have the power to make decisions,

orders and awards in relation thereto;

(e) after the appointment of the third arbitrator decisions, orders or awards shall be made by

all or a majority of the arbitrators;

(f) the view of the chairman shall prevail in relation to a decision, order or award in respect

of which there is neither unanimity nor a majority under paragraph (e).

9. If the tribunal is to consist of two arbitrators and an umpire:

(a) each party shall appoint one arbitrator not later than 14 days after service of a request in

writing by either party to do so;

(b) the two so appointed may appoint an umpire at any time after they themselves are

appointed and shall do so before any substantive hearing or forthwith if they cannot agree

on any matter relating to the arbitration, and if the two said arbitrators do not appoint an

umpire within 10 working days of one calling upon the other to do so, the President shall,

on the application of either arbitrator or of a party, appoint the umpire;

(c) the umpire shall attend any substantive hearing and shall following his appointment be

supplied with the same documents and other materials as are supplied to the other

arbitrators;

(d) the umpire may take part in the hearing and deliberate with the original arbitrators;

(e) decisions, orders and awards shall be made by the original arbitrators unless and until

they cannot agree on a matter relating to the arbitration. In that event they shall forthwith

give notice in writing to the parties and the umpire, whereupon the umpire shall replace

them as the tribunal with power to make decisions, orders and awards as if he were the

sole arbitrator.

JURISDICTION

10. Notwithstanding the terms of any appointment of an arbitrator, unless the parties otherwise

agree the jurisdiction of the tribunal shall extend to determining all disputes arising under or

in connection with the transaction the subject of the reference, and each party shall have the

right before the tribunal makes its award (or its last award, if more than one is made in a

reference) to refer to the tribunal for determination any further dispute(s) arising subsequently

to the commencement of the arbitral proceedings.

TRIBUNAL’S FEES

11. Provisions regulating fees payable to the tri