Shortened Arbitration Procedure
SOCIETY OF MARITIME ARBITRATORS, INC.
This Procedure applies to contracts entered into prior to June 18, 1991
Supplement to the Arbitration Clause
"Notwithstanding anything contained herein to the contrary, should the sum claimed by each party, excluding interest and cost, not exceed U.S.$___________ (insert amount), the dispute is to be governed by the 'Shortened Arbitration Procedure' of the Society of Maritime Arbitrators, Inc. (S.M.A.) of New York, as defined in the Society's current Rules for such procedure, copy of which is attached hereto."
SMA RULES FOR SHORTENED ARBITRATION PROCEDURE
- The maximum amount claimed by each party (exclusive of interest and costs) shall not exceed U.S.$________.
- The parties may agree upon a sole arbitrator, but if unable to do so within fifteen (15) days from the receipt of the demand for arbitration, a panel shall be formed pursuant to the arbitration clause of the governing charter party, contract, or agreement, and proceed in accordance with these Rules. Such party appointed arbitrators shall agree upon the third arbitrator within ten (10) days of their appointment, failing which either of the appointed arbitrators shall apply to the S.M.A. for designation.
- Failing timely appointment of an arbitrator by the defendant party within fifteen (15) days of notice of appointment of claimant's arbitrator, the arbitrator appointed by claimant shall become and act as sole arbitrator.
- Within fifteen (15) days from date of his appointment, the sole arbitrator or panel chairman (third arbitrator) shall establish a program for the written submission of each party's claims and counter-claims. All such submissions shall be accompanied by those supporting documents that each party intends to rely upon.
- If requested by a party, a single hearing may be convened for the purpose of orally supplementing that party's written submission and/or responding to the position of its opponent. There shall be no witnesses heard, and unless agreed and arranged by the parties, no written transcript of the hearing will be maintained. Under exceptional circumstances, each party may, at the sole discretion of the sole arbitrator or panel, be permitted a single postponement which shall not exceed ten (10) days.
- At the conclusion of the evidential phase of the proceeding, each party may submit a written summary of its position. Such submissions must be put forward within the time imposed by the sole arbitrator or panel.
- The fee of each participating arbitrator shall not exceed U.S. $750.00 and may, at the discretion of the sole arbitrator or panel, be assessed against either or jointly and severally among the parties to the dispute.
- The award will be issued within thirty (30) days from receipt of final submissions. It shall be composed as concisely as practicable.
- In all other respects, including the enforcement provision, terms of the arbitration clause of the governing charter party or agreement shall apply.
THE SOCIETY OF MARITIME ARBITRATORS, INC., of New York
January 1, 1989