CHAPTER 34 SMA ARBITRATION

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CHAPTER 34

SMA ARBITRATIONAndré Pereira da Fonseca

ANDRÉ PEREIRA DA FONSECA | SMA ARBITRATION

From the book:INTERNATIONAL ARBITRATION IN THE UNITED STATESLaurence Shore, Tai Heng Cheng, Jenelle E. La Chuisa, Lawrence Schaner, Mara V.J. Senn (Editors), Liang-Ying Tan (Associate Editor)


INTERNATIONAL ARBITRATION INTHE UNITEDSTATES


URL:

§ https://lrus.wolterskluwer.com/store/product/international-arbitration-in-the-united-states/

§ http://www.kluwerarbitration.com/

https://lrus.wolterskluwer.com/store/product/international-arbitration-in-the-united-states/

http://www.kluwerarbitration.com/


Table of contents


www.abreuadvogados.comANDRÉ PEREIRA DA FONSECA | SMA ARBITRATION

New Amsterdam New York Produce Exchange CSS Alabama

BACKGROUNDAND HISTORY OF MARITIME ARBITRATION INTHEUNITEDSTATES

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SMAARBITRATION

§ Overview of the SMA Rulesü Grown out of the practice and experience developed by New York lawyersspecialized in maritime arbitration

ü Goals of cost-efficiency, speed and fairnessü Widely accepted and adaptable to the needs of the partiesü Include a shortened arbitration procedure, rules regarding salvage arbitration andrules for mediation and conciliation

ü Arbitrators’ code of ethics

§ SMA Rules and the FAAü Governing law of SMA Arbitrationsü Rules were established and have been ammended in conformity with the FAAü Role that it plays in arbitration proceedings



SMAARBITRATION

§ The Agreement to Arbitrateü Recommended clause / issues of formü Non-signatories issues (Thomson-CSF, S.A. V. American Arbitration Association, 64,F.3d 773 (2 Cir. N.Y. Aug. 24, 1995)

ü Affiliated corporate relations

§ Commencing the arbitrationü Requirements of the request for arbitrationü Time-bar issues (COGSA one year time-bar and others)

§ Consolidation of disputesü Interests of efficiency, swiftness, uniformity and predictabilityü Requirementsü Impact of the Goverment of the United Kingdom of Great Britain and Northern Irelandv. The boeing Company and Textron, Inc. 998 F.2d 68 (2d Cir. N.Y. Jun. 29, 1993)

ü How SMA arbitrators have approached consolidation



SMA ARBITRATION

§ Arbitration tribunalsü Who are the arbitratorsü Interpretation of the term “Commercial men” – WK Webster & co. Vs. AmericanPresident Lines, Ltd. 32 F.3d 665 (2d Cir. NY. Aug. 2, 1994)

ü Appointmentsü Disclosure and challengesü SMA Code of ethics

§ General conduct of the proceedingsü Hearings, time-tables, written and oral statements, submission of documents,

communications between the parties and the tribunal, failures to proceed andwaivers.



SMAARBITRATION

§ Taking of evidenceü Types of evidence that are admissibleü Importance in light of Section 10(3) of the FAAü Witness statements, affidavitsü Documentsü Subpoenas (Section 7 of the FAA / Section 23 of the SMA Rules)ü Other types of evidence such as inspection of vessels / offshore units, expertopinions

ü Adverse inference



SMAARBITRATION

§ Pre-award securityü The SMA has been regarded as one of the best surviving venues for parties seekingequitable security through reasoned and balanced pre-judgement awards

ü Types of securityü Core factors/requirements to consider by the arbitratorsü Form of the order for security and possibility of confirmation pursuant Section 9 of theFAA

§ SMA Awardsü Form and scopeü Possibility of awarding “reasonable” attorneys’ feesü Sources and decision processü Distinctive feature of publication (Lexis-Nexis) - providing certainty, predictability, andtransparency, decreasing the likelihood of inconsistent decisions

ü Confirmation, enforcement and vacation



SMAARBITRATION

§ SMAShortened arbitration procedure

§ SMA alternative dispute resolutionüMediation rulesüConciliation rules



SMAARBITRATION

§ ConclusionsüPanels composed of experienced industry peersüSwift proceedingsüPossibility of consolidationüWide-ranging availability of pre-award securityüAward system - example of transparency



Thank you!

André Pereira da Fonseca

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