Gafta has made a number of changes to its 125 Arbitration Rules (‘Rules’). These will come into effect on 1st September 2016. The changes have been made to address a number of practical concerns which have been raised by Gafta arbitration users.
Following a period of extensive consultation involving, amongst others, Gafta`s Arbitration and Contract Committees, individual Gafta Qualified Arbitrators and a number of law firms involved in Gafta arbitration, Gafta Council approved the changes at its meeting on 15th June 2016.
The main changes are as follows:
- The time limit for claiming arbitration in respect of a dispute relating to quality and condition has been increased from 21 days to 1 year (Rule 2.2)
- A time limit for a Claimant paying a deposit has been introduced. If the deposit is not paid within 60 days of being called for, the arbitration application will be deemed to have been waived (Rule 4.1)
- Arbitrators have been given greater flexibility to consolidate cases
- A cancellation costs rule has been introduced whereby the arbitration panel is entitled to charge a fee, based on a sliding scale, when a hearing is cancelled or postponed at short notice (Rule 16)
Gafta will be running a series of Hot Topic Seminars for Gafta members to highlight the changes.
The amended Rules are now available on www.gafta.com/contracts: http://www.gafta.com/write/MediaUploads/Contracts/2016/125_2016.pdf
A marked version showing the changes made is attached below.
Jonathan Waters, Gafta`s General Counsel, commented:
“We believe that the amended Rules will be beneficial to all those who are involved in Gafta arbitration. Going forward, we will, through the Arbitration Committee in particular, keep the Rules under regular review and any member who has any comments is invited to contact me direct.”
You can contact Jonathan at JonathanWaters@gafta.com