New York

Both of these organisations provide the normal, full scale, arbitration service and their Rules are similar in many respects.  Both encourage the parties’ agreement to appoint a single arbitrator and both have provision for the two parties to appoint separate arbitrators; there is also provision in both sets of rules for a third arbitrator. However, in the LMAA Rules such a third arbitrator has the role of Umpire because the two cannot agree.  In the New York rules, unless an umpire is specifically requested, the third member becomes the Chairman of the tribunal and a majority decision is permitted. It is important for appointee and appointer to remember that an arbitrator’s role is that of a judge not an advocate except on those occasions when an Umpire is appointed then the two arbitrators argue their cases as advocates and the Umpire’s decision is final. Many shipping voyages and time charter contracts are left with relatively minor but nonetheless irritating, disputed amounts when the time comes to finalise the figures and for the parties to square the accounts. Frequently the amounts at stake would not justify the costs, the delay and the time involved in a formal, full arbitral hearing. Nevertheless, unnecessary disputes may linger as festering commercial sores, impeding the smooth negotiation of further mutually beneficial contracts between the parties. For such disputes there are simplified arbitration procedures, offering a swift and economical means to resolve small and/or relatively uncomplicated claims with the aim of saving both time and expense, thus bringing arbitration into the reach of those with a genuine grievance where it might previously have been felt that existing procedures resulted in the incurring of costs which were out of proportion to the sums involved.