One of the main issues related to the maritime industry is the effective resolution of disputes in the merchant shipping area. For more than 90 years the disputes arising in this sphere have been resolved in the Maritime Arbitration Commission at the Chamber of Commerce and Industry of the Russian Federation (hereinafter – MAC)¹. Since its

Although MAC is not the only arbitration institution in Russia, which resolves private maritime disputes, it is the oldest and specialized arbitration centre, hence it will be discussed further in detail.

The article discusses the specifics of the 2017 MAC Rules, subject matters of disputes, principles of arbitration, procedure for the composition of an arbitration tribunal, disqualification of arbitrators, preparations of the cases, preparation to the hearings.

The main conclusion is that MAC has significant potential and extensive opportunities to meet the needs of the parties in modern conditions. This potential can be helpful for Russian and foreign maritime companies.

Dmitry L. Davydenko, establishment in 1930, MAC has considered more than 4,000 cases. The legal status of the MAC is set by the Law of the Russian Federation of July 7, 1993, No. 5338-I “On International Commercial Arbitration”. The MAC Rules is an appendix to this law.

MAC is not the only arbitration institution in Russia, which resolves private maritime disputes. For example, the ICAS at the RF CCI has such experience. However, MAC is a specialized arbitration centre, so it will be discussed further in detail. In 2017, the new Rules and the recommended list of arbitrators were approved². The latter includes leading Russian and foreign experts in the area of maritime shipping, maritime law, and arbitration, including navigators, corporate lawyers, advocates and reputable scientists.

1. Features of the 2017 MAC Rules of 2017

The 2017 MAC Rules considers many years of experience in dispute resolution of MAC and global trends in arbitration. It provides for general and expedited procedure; the opportunity for the claimant to obtain interim measures before the composition of the arbitral tribunal³; widespread usage of electronic exchange of information; the ability to combine several claims in one claim (including filing a claim under several contracts); the possibility to combine arbitration proceedings of several cases.

In contrast to the previous 2007 Rules, there is no time limit for arbitrators to render a judgment in a case, which was previously 30 days after the date of the last hearing. Instead, there is a time limit for the completion of the proceedings – six months from the date of the composition of the arbitral tribunal⁴.

In paper form, the MAC Secretariat forwards only the most important documents, such as claims, responses to claims, subpoenas, arbitration awards and rulings⁵.

2. Subject matter of disputes and principles of arbitration

MAC considers disputes from contractual and other civil law relations arising from merchant shipping, including contracts for carriage of goods, chartering of ships, marine insurance, salvage, and ships collisions. The parties to the disputes resolved by MAC in 2016–2020 were not only Russian companies, but also of other countries, including the United Kingdom, Hong Kong, Cyprus, Norway, Malta, Poland, the United Arab Emirates, Turkmenistan, the Seychelles and Marshall Islands.

Claims filed in 2016–2020 are based on relations of marine insurance (today it is the most common category of disputes considered in MAC); carriage; chartering; vessels repair; towing; accomplishment of seismic exploration works; salvage of vessels and cargo.

While resolving the disputes, the arbitrators are guided by the law, the Rules and the express agreement of the parties. They should exercise equal treatment to the parties and provide each of them with reasonable opportunities to protect their interests. At the same time, the parties shall use their rights in good faith, prevent abuse of these rights and comply with the established deadlines to enjoy these rights⁶.

It should be noted that in almost all cases to be resolved by MAC both parties are actively involved in proceedings (through representatives), not only the claimants.

3. Procedure for the composition of an arbitration tribunal

An arbitration tribunal is formed, as a rule, on the composition of two arbitrators. Each side has the right to appoint main and substitute arbitrators⁷. An arbitrator can be the person included in the recommended list of MAC, or a person who is not included in this list. The Appointing Committee may decide that a dispute shall be resolved by a sole arbitrator, if the extent of the claim does not, as a rule, exceed the ruble equivalent of US $ 15,000. Such a decision can also be made in other cases, for example, if the case is apparently not complex. However, the complexity of the case often cannot be determined at the stage of receipt of the claim.

If, during the dispute, two arbitrators do not come to a common opinion on how to resolve the dispute, the chairman of the arbitral tribunal shall be appointed by the Appointing Committee. Such situations do arise from time to time. However, this does not affect the amount of the arbitration fee. In 90% of cases, the parties exercise actively their right to appoint an arbitrator.

4. Disqualification of arbitrators

Any party may file a motion for disqualification of an arbitrator if it has justifiable doubts regarding the arbitrator’s impartiality or independence. A motion can also be filed if an arbitrator lacks the qualifications set in an agreement between the parties or in applicable laws.

The motion for challenge is filed to the Appointing Committee no later than 15 days from the date after the party knew about the composition of the arbitral tribunal. Unless the party fails to file a motion within the above period it shall be deemed to have waived its right to challenge⁸.

If the challenged arbitrator does not abstain voluntarily or if the other party does not agree to the disqualification, a decision on the disqualification of the arbitrator shall be made by the Appointing Committee. It may, on its sole discretion, make the decision on the disqualification of the arbitrator.

In practice, the parties sometimes exercise the right to challenge an arbitrator, usually one who is not on the recommended list of arbitrators.

However, reasonable grounds are needed for the disqualification. For example, business acquaintance of the arbitrator with the representatives of the party, in itself, does not lead to the disqualification. The parties should be guided primarily by the 2010 Rules on the impartiality and independence of arbitrators⁹, as well as the IBA Guidelines on Conflicts of Interest in International Arbitration (in current edition)¹⁰.

5. Preparations of the case for arbitration

In practice, arbitrators are increasingly issuing a ruling at an early stage setting a schedule for the proceedings. The issue of accepting new materials from the parties is decided considering the observance of this schedule. In case of non-compliance with the established time periods the arbitrators act depending on the circumstances, including the cause of the non-compliance. Arbitrators are entitled to take this violation into account at the stage of arbitration costs’ distribution¹¹.

6. Hearings

Hearings are held in the building of the CCI, where the MAC Secretariat is located¹².

In most of the cases, one hearing is not enough to resolve a dispute. It is usually so because representatives of one of the parties apply for the possibility of providing additional evidence to the arbitral tribunal. On average, 2–4 hearings are held in the MAC. As a rule, both parties participate in hearings. There are, however, cases when a party asks to hear the case in its absence.

MAC also has experience of cases when, under the agreement between the parties, the proceedings were held without oral hearings¹³.

7. Conclusion

Judicial reviews of MAC cases are published in specialized periodicals¹⁴, and extracts from its judgment are published in the form of digests¹⁵.

P. 22–29; Kuznetsov E.A. A View not from the Outside – 2 // Marine Insurance. 2017. No. 1. P. 30–37; Markalova N.G. Cargo retention right in the contract of carriage goods by sea // Works of The Institute of State and Law of The Russian Academy of Science. 2017. Vol. 12. No. 6. P. 74–92.

MAC has significant potential and extensive opportunities to meet the needs of the parties in modern conditions. This potential can be helpful for Russian and foreign maritime companies. ■