Lloyd's Maritime and Commercial Law Quarterly
THE PRACTICE OF MARITIME ARBITRATIONS IN LONDON: RECENT DEVELOPMENTS IN THE LAW
David A. McIntosh
Solicitor.
Development of arbitration as a means of settling disputes
Arbitration is the oldest and most civilised method of settling disputes. It involves the parties agreeing to refer their argument to a third person, in whom both have confidence and accepting his decision—whichever way it goes. Centuries ago, our ancestors discovered that this method of resolving differences was more sensible than the weak always having to “give way” to the strong.
The appointment of an arbitrator trusted by both parties, is—at least in contemplation—more attractive than a superior authority, such as the English courts (whose powers derive from the Crown) exercising its, sometimes unwelcome, authority over the parties at the behest of only one of those parties, namely the plaintiff.
By classical Roman times arbitration had become prevalent as a means of settling disputes and, in the words of Cicero:—
“None could our ancestors permit to be a judge even in the most trifling money matter, not to speak of affairs concerning the dignity of man, unless the opposing parties were agreed upon it”.
On London becoming a centre of commerce, merchants there resorted to arbitration to settle trading disputes. In fact, it was the only method of obtaining justice based on contractual rights and obligations until the Kings’ Courts found a way to enforce contractual duties.
Notwithstanding the availability and extraordinary competance of the English Commercial Courts, whose judges are drawn from the senior Queens’ Counsel practising in the field of commercial disputes, London arbitration is still commonly chosen as a means of determining disputes. Among its attractions is the ability to resolve disputes privately without the sometimes unwelcome publicity often given to court proceedings.
Arbitration is often the choice of those likely to become involved in disputes in respect of shipping; the construction industry; the interpretation of insurance contracts and in respect of commodity market contracts. In some of these fields, the arbitration procedures adopted by the contracts in question involve the arbitration taking place
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