Lloyd's Open Form (LOF) - New FCAP Limits Announced
Information about Lloyd's Open Form (LOF). LOF provides a regime for determining the amount of remuneration to be awarded to salvors for their services in saving property at sea and minimising or preventing damage to the environment.
Lloyd's Salvage Arbitration Branch is pleased to announce the publication of
LOF2011 (239KB.pdf)
and revised
LSSA Clauses (283KB.pdf)
for use by the maritime community. The changes to the form are detailed in the
attached statement (32KB.pdf)
.
Lloyd's further annouces that with effect from 20 June, 2011, the following amendments have been made to the FCAP.
(i) The level of the security demand referred to in section 1 of the
FCAP Guidelines (29.8kb,
pdf) has been increased from USD1,000,000 to USD1,500,000.
(ii) The cap on party and party costs in a matter before a First Instance Arbitrator has been
increased from GBP10,000 to GBP15,000*.
(iii) The cap on the First Instance Arbitrator's fees has been increased from GBP3,000 to
GBP4,500, plus any fees associated with interlocutory work*.
* See the FCAP “
Schedule of Fixed Costs (14.3kb. pdf)
”.
The cap on Lloyd's fees will remain unchanged at GBP1,000, as will the cap on costs associated with an Appeal.
The Salvage Arbitration Branch is responsible for the administration of Lloyd's Standard Form of Salvage Agreement, or LOF as it is more commonly referred to.
LOF provides a regime for determining the amount of remuneration to be awarded to salvors for their services in saving property at sea and minimising or preventing damage to the environment. Originating from the late 1800s it is probably the most widely used international salvage agreement of its kind in the world today.
The form (239KB, pdf) is administered by Lloyd's Salvage Arbitration Branch whose role is to provide a reputable and secure framework within which the LOF arbitration process can operate. The Form is accompanied by the Lloyd's Standard Salvage and Arbitration (LSSA) Clauses (283KB, pdf) and procedural rules (91KB, pdf).
