Institutional vs. ad hoc Arbitration proceeding
The typical institutional arbitration clause will incorporate by reference
the terms, conditions, and rules of the underlying contract, that is grain,
lumber, sugar, and so forth. The right to arbitrate is incorporated as a
part of the rules of those contracts and the organizations governing them.
In those proceedings, the governing body sets the arbitration rules and
offers a modus operandi for the appointment of arbitrators and their
selection is from a membership list. The arbitration procedure is governed
by the rules, and the process is administered by the relevant trade
association.
The New York maritime arbitration process is an ad hoc type of
proceeding and is not governed by the rules of any particular
association. The provisions of the arbitration clause determine
the process by which the arbitration is conducted. The Society
of Maritime Arbitrators (SMA) is a professional organization whose
members make up the most active group of arbitrators appointed
in maritime proceedings. It is simply an organization whose purpose
is to assist and improve the maritime arbitration process as it
operates in New York. there is no provision that requires arbitrations
be conducted in accordance with the rules of the SMA or that the
arbitrators must be from the roster of members of the organization.
Captain E.N.Rigos is one of the long standing member of the New
York Maritime Arbitrators.
It should be pointed out that the maritime arbitration process
in London is similar to the one in New York in this respect despite
the fact that most other categories of commercial arbitration
are of the institutional variety.
Although the overwhelming number of maritime arbitration disputes
in New York relate to charter party differences regarding speed
deficiency, safe birth, cargo damage, and so forth, there are
a number of arbitration disputes that arise out of contracts of
purchase and sale and contracts for ship building and repair.