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“When bringing a claim under the 2018 Rules, the deadline to file submissions has been increased from within 10 consecutive days under the 2012 Rules (from the date of the notice of arbitration, the document which formally commences proceedings) to within 30 consecutive days under the 2018 Rules (from the date that the responding party appoints their arbitrator).” FOSFA hopes that by standardising the time bars for monies due claims and non-quality and/or condition disputes, this will overcome continuing arguments in the trade distinguishing between these types of claims. Procedural Deadlines The deadlines for parties to file their submissions i.e. their written arguments in quality and condition disputes have also been extended: – When bringing a claim under the 2018 Rules, the deadline to file submissions has been increased fromwithin 10 consecutive days under the 2012 Rules (from the date of the notice of arbitration, the document which formally commences proceedings) to within 30 consecutive days under the 2018 Rules (from the date that the responding party appoints their arbitrator). – When responding to a claim under the 2018 Rules, the deadline to file submissions has also been increased to within 30 consecutive days (from the date when the party bringing the claim’s submissions are received), which is an increase from being within 14 consecutive days under the 2012 Rules. Submissions from both parties in all other types of disputes continue to be required to be served “without delay”. Arbitrators and the “two tier” system FOSFA will continue to operate a “two tier” arbitration system. The first decision is made by the “first tier” tribunal, and this decision can be appealed to a “board of appeal”. Under the 2018 Rules, a three arbitrator tribunal will be standard in the first tier. Whereas, under the 2012 Rules (and unless otherwise agreed), tribunals consisted of two arbitrators with an umpire only being appointed in circumstances that the two arbitrators disagreed.
Under the 2018 Rules, the parties will appoint one arbitrator each, with FOSFA selecting the third arbitrator. This arbitrator will have the responsibility to progress the case diligently and in a timely manner. The parties will remain able to agree to appoint a single arbitrator (instead of a panel of three) under the 2018 Rules. Deposit FOSFA have also introduced a £5,000 deposit (£2,500 for small claims) as standard, to be paid within 30 days of the appointment of the third arbitrator or the sole arbitrator as applicable, by the party bringing the claim. If, once the arbitration is complete, any sum remains once costs have been paid, the remainder of the deposit will be returned to the party that paid it. If you would like more information on the changes in the 2018 Rules and how they affect your business, please do not hesitate to get in touch with us.
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