MARITIME ARBITRATORS REVISE SHORTER PROCEDURE
The Society of Maritime Arbitrators, based in New York, has announced a revision of its Shortened Arbitration Procedure, introduced in 1989 as a quick and inexpensive method of resolving simple disputes that do not require full-scale arbitration.
Lucienne Carasso Bulow, president of the SMA, said that “many disputes being arbitrated under the shortened procedure are much larger and far more complicated than was originally intended. To alleviate “the problem of misapplying the procedure,” the SMA (http://www.smany.org) has come up with a really short form.
The revised shortened procedure calls for the appointment of a single arbitrator and the elimination of oral hearings. The new form allows only a basic exchange of claim and defense, and bars any discovery, unless deemed necessary by the arbitrator. Legal expenses owed to a prevailing party are capped at $2,500, with a $1,500 fee for the sole arbitrator.