The London Maritime Arbitrators Association (LMAA) is an organization of experienced maritime arbitrators established in 1960. The LMAA promotes the resolution of maritime disputes through ad hoc arbitration proceedings conducted in London. You can find more detailed information on the website https://fortiorlaw.com/news/lmaa-arbitration/ To facilitate this, the LMAA has developed a set of arbitration rules that are regularly updated to reflect current industry practices. The association maintains a list of qualified arbitrators and supports their qualifications.

Unlike fixed, institutional arbitration bodies like GAFTA, FOSFA, LCIA, or ICC, the LMAA procedure is ad hoc and specifically formed to address individual disputes. The arbitration process is entirely controlled by the appointed arbitrators, not by the association itself, in accordance with LMAA terms.

LMAA arbitrators are required to meet stringent criteria, including a minimum of 15 years' experience in shipping (covering commercial, technical, and legal aspects), familiarity with English contract and tort law, and arbitration procedures.

Commencement of LMAA arbitration is possible under two circumstances:

1. If the contract includes an LMAA arbitration clause.
2. If the contract, even without an LMAA arbitration clause, stipulates that both parties must nominate arbitrators in the event of a dispute. Subsequently, the parties can confirm in writing their agreement to have the dispute heard by the LMAA.

Arbitration clauses often specify the terms of the arbitration, including the number of arbitrators, their appointment process, and specific LMAA terms to govern the dispute. For instance, parties may choose to use the LMAA Small Claims Procedure for disputes not exceeding USD 100,000, a simplified process.

LMAA arbitrations typically cover a wide range of maritime-related disputes, including charterparties, bills of lading, ship sales and purchases, marine insurance, offshore and oil and gas industry disputes, and other maritime matters. However, there are no restrictions on the types of disputes that can be referred to LMAA arbitration, meaning any dispute, not necessarily related to shipping, may be resolved through this process.

In cases where the place of arbitration is London, the prevailing party can seek a "worldwide freezing order" (WFO) from the English court to enforce the award. A WFO is designed to freeze the debtor's global assets to secure the owed amount. Directors and beneficiaries may also face penalties, including imprisonment, for non-compliance with a WFO. It's common to obtain a disclosure order alongside a WFO, compelling the debtor to disclose all assets.

The advantage of a WFO is that it can be obtained before arbitration, and the court hearing to issue it can be held without the debtor's presence to prevent asset dissipation.

Fortior Law is an international dispute resolution firm with offices in Geneva (Switzerland), Rotterdam (the Netherlands), and Kyiv (Ukraine). The Ukrainian office, led by Danil Hristich, is known for its GAFTA and FOSFA arbitration practice, and Danil Hristich was recommended by The Legal 500 in Dispute Resolution and International Trade in 2020. For more information, you can contact danil.hristich@fortiorlaw.com, sergey.platonov@fortiorlaw.com, or your usual contact at Fortior.