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Update Volume 2019/8 LMAA Arbitration clauses reviewed

Published on 28 february 2019

Pursuant to a number of recent UK Commercial Court cases revolving the validity of arbitration notices sent by e-mail, the LMAA introduced the “LMAA Arbitration Notice Clause”. This clause is designed to remove ambiguity regarding the use of emails to send arbitration notices. The Club recommends its Members to consider using the clause in their Charter Parties.

The LMAA has recently reviewed its standard "LMAA Arbitration Clause" as well. The most significant material amendment is the introduction of a voluntary LMAA Intermediate Claims Procedure ("ICP") for disputes which exceed the Small Claims Procedure amount, but are below the amount of USD 400.000,-. We draw Member's attention to the voluntary nature of the ICP. If Members wish to make the incorporation of the ICP obligatory, the final paragraph of the clause should be amended as follows: "(…) and neither the claim nor any counterclaim exceeds the sum of US$400,000 (or such other sum as the parties may agree) the parties may further agree that the arbitration shall be conducted in accordance with the LMAA Intermediate Claims Procedure current at the time when the arbitration proceedings are commenced".

The full text of the new, respectively revised LMAA clauses can be found on the LMAA website: http://www.lmaa.london/terms-incorporation-clause.aspx.

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