SOCIETY OF MARITIME ARBITRATORS, INC.
This Procedure applies to contracts entered into on or after June 18, 1991 through February 28, 2001
Click here for rules prior to June 18, 1991
Supplement to the Arbitration Clause
“Notwithstanding anything contained herein to the contrary, should the sum claimed by each party not exceed U.S.$___________ (insert amount, exclusive of interest on the sum claimed, costs of the arbitration, and legal expenses, if any), the dispute is to be governed by the ‘Shortened Arbitration Procedure’ of the Society of Maritime Arbitrators, Inc. (S.M.A.) of New York, as defined in the Society’s current Rules for such procedure, copy of which is attached hereto.”
RULES FOR SHORTENED ARBITRATION PROCEDURE
- The maximum amount claimed by each party shall not exceed U.S.$________. This sum shall not include interest on the amount claimed, costs of the arbitration, and legal expenses, if any.
- The parties shall attempt to 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 acceptance of their appointment, failing which either of the appointed arbitrators shall apply to the S.M.A. for designation of the third arbitrator.
- Failing timely appointment of an arbitrator by the defendant 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 acceptance of appointment, the sole arbitrator or panel shall establish a schedule for the written presentation of each party’s claims and the documents upon which the parties rely.
- If requested by a party, a single hearing may be convened for the purpose of orally supplementing that party’s written presentation and/or responding to the position of its opponent. No witnesses shall be heard, and unless agreed and arranged by the parties, no written transcript of the hearing shall 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.
- Within fifteen (15) days from conclusion of the evidential phase of the proceeding, either party may submit one written summary of its position, following which the sole arbitrator or panel shall declare the proceeding closed.
- The fee of each participating arbitrator shall not exceed U.S. $1,000.00 and may, at the discretion of the sole arbitrator or panel, be assessed against either party or jointly and severally among the parties to the dispute.
- The award shall be issued within thirty (30) days from date of closing of the proceeding. It shall be composed as concisely as practicable.
- In all other respects, including the enforcement provision, the terms of the arbitration clause of the governing charter party or agreement shall apply.