LMAA Arbitration: A General Guide

This article is a general guide to LMAA (London Maritime Arbitrators Association) arbitration.

What is LMAA?

LMAA is an association of practising maritime arbitrators. It was founded in 1960 and is based in London. The Association adopts arbitration rules and brings together maritime arbitrators from around the world. Most maritime disputes are resolved under the Association’s rules.

However, LMAA is not an arbitration institution: it does not participate in the resolution of disputes and does not make decisions. Decisions are made by independent arbitrators with whom the parties communicate directly. Therefore, when referring to “LMAA arbitration”, it means arbitration under LMAA rules.

Such arbitration is referred to as “ad hoc” because it lacks a third party moderating the process (such as LCIA, GAFTA, FOSFA; these are known as institutional arbitrations).

Arbitrators

LMAA arbitrators are professionals with deep knowledge in maritime law and the maritime industry. They can be lawyers, brokers, ship captains, or engineers.

Unlike institutional arbitrations, the Association does not have an approved list of arbitrators or requirements for their qualifications. Parties have the freedom to choose and can nominate any candidate as an arbitrator.

However, the Association provides three recommended lists with contacts of individuals ready for nomination:

Full members – the most experienced arbitrators, specialists with outstanding achievements in the maritime industry. Many of them are authors of authoritative works, such as John Schofield’s “Laytime and Demurrage”. To become a full member, one must have 15 years of experience in the maritime field, knowledge of English law, experience working under the Association’s rules, and meet several other requirements.

Aspiring full members – candidates for full membership.

Supporting members – candidates who do not work as full-time arbitrators but are ready to accept nominations. To be included in this list, a candidate must have at least five years of experience in a commercial or technical field or be an English solicitor or barrister or have a similar foreign qualification. Additionally, a recommendation letter from one full member or two supporting members is required for inclusion in the list.

LMAA Rules

The Association offers three sets of rules for arbitration depending on the scale of the dispute:

• LMAA Terms 2021 (Standard Rules): these rules are the primary ones and apply unless otherwise stipulated by the parties.
• LMAA Intermediate Claims Procedure 2021 (Rules for Medium Claims): this set of rules is intended for medium-sized disputes requiring a more simplified and expedited process.
• LMAA Small Claims Procedure 2021 (Rules for Small Claims): these rules are designed specifically for smaller disputes where the parties seek a quick and cost-effective resolution.

If the parties do not specify which rules to apply in the contract, the standard rules apply by default.

Key Differences Between LMAA Rules

The table includes some simplifications for clarity. For example, under the standard rules, a dispute may be handled by a sole arbitrator by agreement of the parties.

Have Questions?

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