The LMAA FALCA Arbitration Clause

The Clause which we recommend should be inserted into charterparties and other maritime contracts provides as follows:

"This contract is governed by English Law and all disputes arising under or in connection with it shall be referred to arbitration in London. The arbitration shall be conducted in accordance with one of the following LMAA procedures:

(i) where the amount claimed by the claimants is less than US$*........................, [*Note: where no figure is inserted, the parties shall be deemed to have agreed a limit of US$250,000, excluding interest,] excluding interest, the reference shall be to a sole arbitrator and the arbitration shall be conducted in accordance with the LMAA FALCA Rules;

(ii) where the amount claimed by the claimants is less than US$50,000, excluding interest, (or such other sum as the parties may agree) the reference shall be to a sole arbitrator and the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure;

(iii) in any case where the LMAA procedures referred to above do not apply the reference shall be to three arbitrators (one to be appointed by each of the parties and the third by the arbitrators so chosen) in accordance with the LMAA Terms in force at the relevant time."