Recent Award Highlights the Advantages of SMA Arbitration( continued from page 12)
The award in this case also highlights the ability of an SMA panel to resolve complex maritime disputes by applying industry-specific contract terms and commercial realities. The panel found that IMC breached the Centurion-IMC booking note by failing to tender cargo within the agreed laycan and rejected the argument that Centurion was required to send the M / V DELLA, or another nominated vessel, to the loading port before asserting its dead freight / liquidated damages claim. The booking notes at issue contained specific wording that the panel relied upon in reaching its decision. The panel awarded Centurion damages against IMC and ordered DYLO to fully indemnify IMC. The panel also awarded Centurion and IMC pre-award interest, attorneys’ fees and expenses, and arbitrators’ fees. In this respect, the award is consistent with the settled practice in SMA arbitration of awarding attorneys’ and arbitrators’ fees, or at least a substantial percentage thereof, to the prevailing party. Many in the shipping industry view this rule as an asset of SMA arbitration.
in a single proceeding. It also shows the importance of selecting arbitration rules that provide procedural tools, such as consolidation and security for arbitrators’ fees, that can materially affect the efficiency, cost allocation, and enforceability of the ultimate result.
There is a cautionary lesson as well. In deciding to pursue arbitration of a claim, parties should bear in mind that attorneys’ and arbitrators’ fees, or at least a substantial part thereof, will be awarded to the prevailing party. This is contrary to the usual American rule in litigation by which each party bears its own fees and costs. Thus, before engaging in arbitration, parties should have sufficient confidence that their claims or defenses will prevail before electing to demand arbitration.
p – 2026 BLANK ROME LLP
The award in this case also highlights the ability of an SMA panel to resolve complex maritime disputes by applying industry-specific contract terms and commercial realities.
This recent award is a useful reminder that SMA arbitration can provide maritime parties with a practical forum for efficiently resolving multi-party, back-to-back disputes
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