Background

The FCAP documents only arbitration guidelines were introduced in May 2005, and aim to limit costs of obtaining an award particularly in cases where the amount of the salved fund is small or where no point of law arises and the facts are uncomplicated.

The main principles of the guidelines are as follows:

  1. In assessing cases which are suitable for FCAP, the arbitrators will take into account the amount of security demanded by salvors. Where the security demand is less than USD1,500,000, then the case will usually be appropriate for a hearing on documents alone. However, the documents-only procedure will not be restricted to such cases.
  2. Where the FCAP is ordered, the arbitrator will expect the parties to prepare a joint bundle, not exceeding 75 pages, comprising documents, statements, and any agreed statement of facts which they wish the arbitrator to take into consideration.
  3. Pursuant to the timetable fixed by the arbitrator the contractors and respondents will serve submissions not exceeding 4,000 words to the arbitrator.
  4. Where there is more than one respondent, they will co-operate with each other to the fullest possible extent, with a view to avoiding duplication of submissions.
  5. Within three weeks from the date of receipt of final submissions, the arbitrator will send his or her award to the Salvage Arbitration Branch of Lloyd's.
  6. The fees of the arbitrator, the charges of the Salvage Arbitration Branch of Lloyd's and the party and party costs shall not exceed the fixed amounts as published by Lloyd's. These are:

 

       (1)    Arbitrator                                                                       £ 4,500                

       (2)    Salvage Arbitration Branch of Lloyd's                            £ 1,000

       (3)    Party and party costs                                                    £15,000 
               (excluding the costs referred to in 1 and 2 above)    
    

  1. A party in whose favour an order for costs is made shall have its recoverable costs capped at GBP15,000, excluding the Arbitrator and SAB’s costs plus any other costs not within the scope of the FCAP.
  2. Any Award published in accordance with the FCAP will, of course, fall under the Appeal Provisions contained in Lloyd’s Form of Salvage Agreement and any such appeal will usually be conducted on a documents-only basis with fixed costs. The costs of appeal will be:

 

       (1)   Appeal Arbitrator                                                             £3,000    

       (2)   Salvage Arbitration Branch of Lloyd's                                £500

       (3)   Party and party costs                                                      £1,500 
              (excluding the costs referred to in 1 and 2 above)  

 

Guidelines and costs

FCAP guidelines (29.8KB.pdf)  

FCAP fixed costs (14.3KB, pdf)