Rules

INTERNATIONAL YACHT ARBITRATION COUNCIL

Rules of Procedure

Introduction

The International Yacht Arbitration Council (hereinafter, the “Arbitration Council”) has established a system for settlement, by arbitration or mediation of maritime commercial disputes, which it maintains and administers.

The Arbitration Council provides services to parties who request mediation or arbitration, in accordance with the Rules of Procedure (“Rules”) of the Arbitration Council. Arbitrations are conducted by arbitrators who are specifically selected by the parties from a list of certified arbitrators maintained by the Arbitration Council in accordance with the Rules. Appointed arbitrators are highly qualified individuals, tasked with rendering awards on the merits of disputes.

Organization

Upon request, the Arbitration Council may lend its good offices to mediation of misunderstandings and commercial trade disputes.

The Rules herein are the official rules of the Arbitration Council, as of July 1, 2020. They include the substantive provisions of the UNCITRAL Arbitration Rules (developed by the United Nations Commission on International Trade Law and recommended by the General Assembly on December 15, 1976) and have been adapted to the institutional requirements of the Arbitration Council. The Arbitration Council was formed by and for the International Yacht Brokers Association to advance the most effective and highest quality possible resolution of disputes involving the purchase and sale of yachts.

Instructions for Proceeding Under the Rules

Parties shall be deemed to have incorporated these Rules into their arbitration agreement whenever they have provided for arbitration by the Arbitration Council.

When parties agree to arbitrate under these Rules, or when they provide for arbitration by the Arbitration Council and an arbitration is initiated thereunder, the parties thereby designate the Arbitration Council the administrator of the arbitration. The authority and obligations of the administrator are prescribed in both the agreement of the parties and these Rules.

A party who desires to initiate an arbitration should give a notice of arbitration to the other party (or parties), as outlined in Article 3. The initiating party shall file the following documents at the office of the Arbitration Council: (1) two copies of the notice and (2) two copies of the full contract, or the provisions relevant to the dispute, including the arbitration provision. Upon receipt of the required documentation, the Arbitration Council shall give notice of such filing to the other party.

When a party initiates arbitration under these Rules, either the Arbitration Council or the appointed arbitrator(s) shall provide administrative services to facilitate the conduct of the case. Administrative services include scheduling and making physical arrangements for hearings, issuing notices and orders when required, arranging fees of arbitrators, and performing other services.

Administrative services help to facilitate efficient handling of the necessary details of the arbitration.

A party shall request that the Arbitration Council appoint an arbitrator (or arbitrators) to perform the various functions set forth by these Rules, in accordance with Articles 6 and 7.

A party who desires to communicate with the Arbitration Council may do so via mail, courier or email to:

Executive Director

International Yacht Arbitration Council

info@iyac.org

SECTION I

INTRODUCTORY RULES

Article 1

Scope of Application

Where the parties to a contract have agreed, in writing, that disputes in relation to that contract shall be referred to arbitration under the Arbitration Council and its Rules, then such disputes shall be settled in accordance with these Rules, subject to modification as the parties may agree, in effect as of the commencement of the arbitration in writing.

Article 2

Notice, Calculation of Periods of Time

For purposes of these Rules, any notice, including a notification, communication, or proposal, is deemed “received” if it is physically delivered to the addressee, or if it is delivered at his/her habitual residence, place of business, or mailing address. If none of these addresses can be located after a reasonable inquiry, then the notice will be deemed “received” if left at the addressee’s last known residence or place of business. Further, notice shall be deemed to have been “received” on the day it is so delivered.
Under these Rules, a period of time is calculated following the day a notice, notification, communication, or proposal is received. If the last day of a period of time falls on an official holiday or on a non-business day at the residence or place of business of the addressee, the period is therefore extended until the following first business day. All other official holidays or non-business days, however, are included in calculating the period of time, as long as they do not coincide with the last day.

Article 3

Notice of Arbitration

The party initiating recourse to arbitration (hereinafter called the “Claimant”) shall give to the other party (hereinafter called the “Respondent”) a written notice of arbitration.
Arbitral proceedings shall be deemed to commence on the date on which the notice of arbitration is received by the respondent.
The notice of arbitration shall include the following:

(a) a demand that the dispute be referred to arbitration;

(b) the names and address of the parties;

(d) a reference to the contract or incident out of or in relation to which the dispute arises;

(e) the general nature of the claim and an indication of the amount involved, if any;

(f) the relief or remedy sought; and,

(g) a proposal as to the number of arbitrators (i.e., one or three), if parties have not previously agreed thereon.

The notice of arbitration may also include:

(a) the proposals for the appointment of a sole arbitrator referred to in Article 6, paragraph 1;

(b) the notification of the appointment of an arbitrator referred to in Article 7; and,

Article 4

Representation and Assistance

The parties may be represented by persons of their choice. The names and addresses of such persons must be communicated in writing to the other party.

Section II

Composition of the Arbitral Tribunal

Article 5

Number of Arbitrators

If the parties have not previously agreed on a number of arbitrators (i.e., one or three), or on the Simplified Claims Procedures, as set forth in Article 40, and if within fifteen (15) days after the receipt by the respondent of the notice of arbitration the parties have not agreed that there shall be only one arbitrator, three (3) arbitrators shall be appointed. QP

Articles 6 to 8

Appointment of Arbitrators

Article 6

If a sole arbitrator is to be appointed, either party may propose to the other the names of one or more persons from the Arbitration Council’s list of approved arbitrators, one of whom may serve as the sole arbitrator.
If within thirty (30) days after receipt by a party of a proposal made in accordance with paragraph 1, Article 6, the parties have not reached an agreement on the choice of a sole arbitrator, the sole arbitrator shall be appointed by the Arbitration Council.
The Arbitration Council shall, at the request of one of the parties, appoint the sole arbitrator as promptly as possible. In making the appointment, the Arbitration Council shall use the following list-procedure or unless the Arbitration Council determines in its discretion that the use of the list-procedure is not appropriate for the case):

(a) at the request of one of the parties, the Arbitration Council shall communicate to both parties an identical list containing at least three (3) names;

(b) within fifteen (15) days after the receipt of this list, each party shall return the list to the Arbitration Council, after having deleted the name or names to which he objects and numbered the remaining names on the list in the order of his preference;

(c) after the expiration of the above period of time, the Arbitration Council shall appoint the sole arbitrator from among the names approved on the lists returned to it and in accordance with the order of preference indicated by the parties; and,

(d) if for any reason the appointment cannot be made according to this procedure, the Arbitration Council may exercise its discretion in appointing the sole arbitrator.

In making the appointment, the Arbitration Council shall have regard to such considerations as are likely to secure the appointment of an independent and impartial arbitrator.

Article 7

If three (3) arbitrators are to be appointed, each party shall appoint one arbitrator from the Arbitration Council’s list of approved arbitrators. The two (2) arbitrators thus appointed shall choose the third arbitrator from the Arbitration Council’s list of approved arbitrators, who will act as the presiding arbitrator of the tribunal. On all arbitrator panels comprised of three arbitrators, at least one (1) arbitrator shall be a lawyer member of the Arbitration Council arbitration panel.
If within thirty (30) days after the receipt of a party’s notification of the appointment of an arbitrator, the other party has not notified the first party of the arbitrator he has appointed, the first party may request the Arbitration Council to appoint the second arbitrator.
If within thirty (30) days after the appointment of the second arbitrator, the two arbitrators have not agreed on the choice of the presiding arbitrator, the presiding arbitrator shall be appointed by the Arbitration Council in the same way as a sole arbitrator would be appointed under Article 6.

Article 8

When the Arbitration Council is requested to appoint an arbitrator, pursuant to Article 6 or Article 7, the party which makes the request shall send to the Arbitration Council a copy of the notice of arbitration, a copy of the contract out of or in relation to which the dispute has arisen, and a copy of the arbitration agreement if it is not contained in the contract. The Arbitration Council may require, from either party, any information it deems necessary to fulfill its functions.
Where the names of one or more persons are proposed for appointment as arbitrators, their full names and addresses shall be indicated, in conjunction with a description of their qualifications.

Articles 9 to 12

Challenge of Arbitrators

Article 9

A prospective arbitrator shall disclose any circumstances to those who approach him in connection with his possible appointment likely to give rise to justifiable doubts as to his impartiality or independence. An arbitrator, once appointed or chosen, shall disclose such circumstances to the parties unless they have already been informed by the arbitrator of these circumstances.

Article 10

Any arbitrator may be challenged if circumstances exist that give rise to justifiable doubts as to the arbitrator’s impartiality or independence.
A party may challenge an arbitrator it appoints only when the party learns of relevant reasons to do so, following the appointment.

Article 11

A party who intends to challenge an arbitrator shall send notice of his challenge either within fifteen (15) days after the appointment of the challenged arbitrator has been notified to the challenging party, or within fifteen (15) days after the circumstances mentioned in Articles 9 and 10 became known to that party.
The challenge shall be sent to the other party, to the arbitrator who is challenged, and to the other members of the arbitral tribunal. The notification shall be in writing and shall state the reasons for the challenge.
When an arbitrator has been challenged by one party, the other party may agree to the challenge. The arbitrator may also, after the challenge, withdraw from his/her office. In neither case does this imply acceptance of the validity of the grounds for the challenge. In both cases, the procedures provided in Article 6 or 7 shall be used in full for the appointment of the substitute arbitrator, even if during the process of appointing the challenged arbitrator a party had failed to exercise his right to appoint or to participate in the appointment.

Article 12

If the other party does not agree to the challenge, and the challenged arbitrator does not withdraw, the decision on the challenge will be made by the Arbitration Council.
If the Arbitration Council sustains the challenge, a substitute arbitrator shall be appointed or chosen, pursuant to the procedures applicable to the appointment or choice of an arbitrator, as provided in Articles 6 to 8.

Article 13

Replacement of an Arbitrator

In the event of the death or resignation of an arbitrator during the course of the arbitral proceedings, a substitute arbitrator shall either be appointed or chosen, pursuant to the procedure provided for in Articles 6 to 8, as applicable to the appointment or choice of the arbitrator being replaced.
In the event that an arbitrator fails to act or in the event of the de jure or de facto impossibility of his performing his functions, the procedure in respect of the challenge and replacement of an arbitrator, as provided in the preceding article, shall apply.

Article 14

Repetition of Hearings in the Event of the Replacement of an Arbitrator

If under Articles 11 to 13 the sole or presiding arbitrator is replaced, any previously held hearings shall be repeated. If any other arbitrator is replaced, such prior hearings may be repeated at the discretion of the arbitral tribunal.

Section III

Arbitral Proceedings

Article 15

General Provisions

Subject to these Rules, the arbitral tribunal may conduct the arbitration in such manner as it considers appropriate, provided that the parties are treated with equality, and that at any stage of the proceedings, each party is given a full opportunity to present its case.
If either party so requests at any stage of the proceedings, the arbitral tribunal shall hold hearings for the presentation of evidence by witnesses, including expert witnesses, or for oral argument. In the absence of such a request, the arbitral tribunal shall decide whether to hold such hearings, or whether the proceedings shall be conducted on the basis of documents and other materials.
All documents or information supplied to the arbitral tribunal by one party shall, at the same time, be communicated by that party to the other party.

Article 16

Place of Arbitration

Unless the parties have agreed upon the place where the arbitration is to be held, such place shall be determined by the arbitral tribunal, having regard to the circumstances of the arbitration.
The arbitral tribunal may meet at any place it deems appropriate for the inspection of property or documents. The parties shall be given sufficient notice to enable them to be present at such inspection.
The award shall be made at the place of arbitration.

Article 17

Statement of Claim

Unless the statement of claim was contained in the notice of arbitration, within a period of time to be determined by the arbitral tribunal, the claimant shall communicate his statement of claim in writing to the respondent and to each of the arbitrators. A copy of the contract, and of the arbitration agreement if not contained in the contract, shall be annexed thereto.
The statement of claim shall include the following particulars:

(a) the names and addresses of the parties;

(b) a statement of the facts supporting the claim;

(d) the relief or remedy sought.

The claimant may annex to his statement of claim all documents he deems relevant or may add a reference to the documents or other evidence he will submit.

Article 18

Statement of Defense

Within a period of time to be determined by the arbitral tribunal, the respondent shall communicate his statement of defense in writing to the claimant and to each of the arbitrators.
The statement of defense shall reply to the particulars (b), (c), and (d) of the statement of claim (Article 17, paragraph 2). The respondent may annex to the statement the documents on which he/she relies for the defense, or may add a reference to the documents, or other evidence to be submitted.
In the statement of defense, or at a later stage in the arbitral proceedings if the arbitral tribunal decides that the delay was justified under the circumstances, the respondent may make a counterclaim arising out of the same contract, or rely on a claim arising out of the same contract for the purpose of a set-off.
The provisions of Article 17, paragraph 2 shall apply to a counterclaim and a claim relied on for the purpose of a set-off.

Article 19

Amendments to the Claim or Defense

During the course of arbitral proceedings, either party may amend or supplement the claim or defense, unless the arbitral tribunal considers it inappropriate to allow such amendment. In determining whether an amendment is inappropriate, the arbitral tribunal will consider a party’s delay in making the amendment, or whether such amendment will bring prejudice to the other party, or any other circumstances. However, a claim may not be amended in such a manner that the amended claim falls outside the scope of the arbitration clause or within the scope of a separate arbitration agreement.

Article 20

Pleas as to the Jurisdiction of the Arbitral Tribunal

The arbitral tribunal shall have the power to rule on objections that it lacks jurisdiction, including any objections with respect to the existence or validity of the arbitration clause or of the separate arbitration agreement.
The arbitral tribunal shall have the power to determine the existence and validity of the contract containing an arbitral clause. For the purposes of Article 20, an arbitration clause which forms part of a contract and provides for arbitration under these Rules shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause.
A plea indicating that the arbitral tribunal lacks jurisdiction shall be raised no later than in the statement of defense or, with respect to a counterclaim, in the reply to the counterclaim.
In general, the arbitral tribunal should rule on a plea concerning its jurisdiction as a preliminary question. However, the arbitral tribunal may proceed with the arbitration and rule on such a plea in its final award.

Article 21

Further Written Statements

The arbitral tribunal shall decide which further written statements, in addition to the statement of claim and the statement of defense, shall be required from the parties or may be presented by the parties. The arbitral tribunal shall also fix the periods of time for communicating such statements.

Article 22

Periods of Time

The periods of time fixed by the arbitral tribunal, for the communication of written statements (including the statement of claim and statement of defense), should not exceed forty-five (45) days. However, the arbitral tribunal may extend the time limits, if it concludes that an extension is justified.

Articles 23 and 24

Evidence and Hearings

Article 23

Each party shall have the burden of proving the facts relied on to support his/her claim or defense.
The arbitral tribunal may, if it considers it appropriate, require a party to deliver to the tribunal and to the other party, within such a period of time as the arbitral tribunal shall decide, a summary of the documents and other evidence which that party intends to present in support of the facts in issue set out in the statement of claim or statement of defense.
At any time during the arbitral proceedings, the arbitral tribunal may require the parties to produce documents, exhibits, or other evidence within a period of time determined by the arbitral tribunal.

Article 24

In the event of an oral hearing, the arbitral tribunal shall give the parties adequate advance notice of the date, time, and place thereof.
If witnesses are to be heard, at least fifteen (15) days before the hearing each party shall communicate to the arbitral tribunal and to the other party the names and addresses of the witnesses he/she intends to present, and the subject upon which such witnesses will give their testimony.
The arbitral tribunal shall arrange for the translation of oral statements made at a hearing and for a record of the hearing, if either is deemed necessary by the tribunal under the circumstances of the case, or if the parties have agreed thereto and have communicated such agreement to the tribunal at least fifteen (15) days before the hearing.
Hearings shall be held in camera, unless the parties agree otherwise. The arbitral tribunal may require the retirement of any witness or witnesses during the testimony of other witnesses. The arbitral tribunal is free to determine the manner in which witnesses are examined.
Evidence of witnesses may also be presented in the form of written statements signed by the witnesses.
The arbitral tribunal shall determine the admissibility, relevance, materiality, and weight of the evidence offered.

Article 25

Interim Measures of Protection

At the request of either party, the arbitral tribunal may take any interim measures it deems necessary in respect of the subject matter of the dispute, including measures for the preservation of the property forming the subject matter in dispute (such as ordering their deposit with a third person or the sale of perishable goods).
Such interim measures may be established in the form of an interim award. The arbitral tribunal shall be entitled to require security for the costs of such measures.
A request for interim measures addressed by any party to a judicial authority shall not be deemed incompatible with the agreement to arbitrate, or as a waiver of that agreement.

Article 26

Default

If, within the period of time fixed by the arbitral tribunal, the claimant has failed to communicate his/her claim without showing sufficient cause for such failure, the arbitral tribunal shall issue an order for the termination of the arbitral proceedings. If, within the period of time fixed by the arbitral tribunal, the respondent has failed to communicate his/her statement of defense without showing sufficient cause for such failure, the arbitral tribunal shall order that the proceedings continue.
If one of the parties, duly notified under these Rules, fails to appear at a hearing, without showing sufficient cause for such failure, the arbitral tribunal may proceed with the arbitration.
If one of the parties, duly invited to produce documentary evidence, fails to do so within the retirement of any witness or witnesses during the established period of time, without showing sufficient cause for such failure, the arbitral tribunal may make the award on the evidence before it.

Article 27

Closure of Hearings

The arbitral tribunal may inquire whether the parties have either any further proofs to offer or additional witnesses to be heard, or submissions to make and, if there are none, may declare the hearings closed.
The arbitral tribunal may, if it considers it necessary owing to exceptional circumstances, decide, on its own motion or upon application of a party, to reopen the hearings at any time before the award is made.

Article 28

Waiver of Rules

A party who knows that any provisions or requirements under these Rules have not been complied with, but yet proceeds with the arbitration without promptly stating his objection to such non-compliance, shall be deemed to have waived his right to object.

Section IV

The Award

Article 29

Decisions

When there are three arbitrators, any award or other decision of the arbitral tribunal shall be made by a majority of the arbitrators.
In the case of questions of procedure, when there is no majority or when the arbitral tribunal so authorizes, the presiding arbitrator may decide on his own, subject to revision (if any), by the arbitral tribunal.

Article 30

Form and Effect of the Award

In addition to making a final award, the arbitral tribunal shall be entitled to make interim, interlocutory, or partial awards.
The award shall be made in writing and shall be final and binding on the parties. The parties shall carry out the award without delay.
The arbitral tribunal shall state the reasons upon which the award is based, unless the parties have agreed that no reasons are to be given.
An award shall be signed by the arbitrators and it shall contain both the date and the place where the award was made. Where there are three arbitrators, and one of them fails to sign, the award shall state the reason for the absence of the signature.
The award will be published, unless the parties stipulate otherwise in writing.
Copies of the award signed by the arbitrators shall be communicated to the parties by the arbitral tribunal.

Article 31

Settlement or Other Grounds for Termination

If, before the award is made, the parties agree on a settlement of the dispute, the arbitral tribunal shall either issue an order for the termination of the arbitral proceedings or, if requested by both parties and accepted by the tribunal, record the settlement in the form of an arbitral award on agreed terms. The arbitral tribunal is not obliged to give reasons for such an award.
If, before the award is made, the continuation of the arbitral proceedings becomes unnecessary or impossible for any reason not mentioned in Article 31, paragraph 1, the arbitral tribunal shall inform the parties of its intention to issue an order for the termination of the proceedings. The arbitral tribunal shall have the power to issue such an order, unless a party raises justifiable grounds for objection.
Copies of the order for termination of the arbitral proceedings or of the arbitral award on agreed terms, signed by the arbitrators, shall be communicated by the arbitral tribunal to the parties. Where an arbitral award on agreed terms is made, the provisions of Article 30, paragraphs 2, and paragraphs 4 to 6, shall apply.

Article 32

Correction of the Award

Within thirty (30) days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to correct in the award any errors in computation, any clerical or typographical errors, or any errors of similar nature. The arbitral tribunal may, within thirty (30) days after the communication of the award, make such corrections on its own initiative.
Such corrections shall be in writing, and the provisions of Article 30, paragraphs 2 to 6, shall apply.

Article 33

Additional Award

Within thirty (30) days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to make an additional award as to claims presented in the arbitral proceedings but omitted from the award.
If the arbitral tribunal considers the request for an additional award to be justified and considers that the omission can be rectified without any further hearings or evidence, it shall complete its award within (60) sixty days after the receipt of the request.
When an additional award is made, the provisions of Article 30, paragraphs 2 to 6, shall apply.

Articles 34 to 36

Costs

Article 34

The arbitral tribunal shall fix the costs of arbitration in its award. The term “costs” includes only:

(a) the fees of the arbitral tribunal to be stated separately as to each arbitrator and to be fixed by the tribunal itself in accordance with Article 39;

(b) the travel and other expenses incurred by the arbitrators; and,

(c) such costs as are required to be paid for the conduct of the arbitration, as determined by the arbitral tribunal (for example, but not by way of limitation, translation and transcription costs).

Article 35

The fees of the arbitral tribunal shall be reasonable in amount, considering the amount in dispute, the complexity of the subject matter, the time spent by the arbitrators, as well as any other relevant circumstances of the case.
Any party may, at any time, request the Arbitration Council furnish a statement setting forth the basis for establishing fees for arbitrators, as customarily followed in cases in which the Arbitration Council appoints arbitrators. The arbitral tribunal, in fixing its fees, shall take any such information provided by the Arbitration Council into account, to the extent that it considers appropriate, given the circumstances of the case.
The Arbitration Council shall prescribe schedules setting forth the administrative fee, other service charges, and refunds. The schedule in effect at the time of initiating the arbitration shall be applicable.
The initial administrative fee shall be advanced by the claimant or claimants. Other administrative fees and such costs necessary for the conduct of the arbitration, determined by the arbitral tribunal (for example, but not by way of limitation, translation and transcription costs) shall be advanced one-half (1/2) by the claimant and one-half (1/2) by the respondent.

Article 36

Except as provided in Article 36, paragraph 2, the costs of arbitration shall, in principal, be borne equally by the parties. However, the arbitral tribunal may apportion each of such costs between the parties, if it determines that apportionment is reasonable, considering the circumstances of the case.
With respect to the costs of legal representation the arbitral tribunal, considering the circumstances of the case, shall be free to determine which party shall bear such costs. The arbitral tribunal may apportion such costs between the parties if it determines that apportionment is reasonable.
When the arbitral tribunal issues an order for the termination of the arbitral proceedings or makes an award on agreed terms, it shall fix the costs of arbitration referred to in Article 34 and Article 35, paragraph 1, in the text of that order or award.
Under Articles 32 and 33, additional, reasonable fees may be charged by an arbitral tribunal for correction or completion of its award.

Article 37

Deposit of Costs

The arbitral tribunal, on its establishment, may request each party deposit an equal dollar amount as an advance for the costs referred to in Article 34, paragraphs (a) and (b).
During the course of the arbitral proceedings the arbitral tribunal may request supplementary dollar deposits from the parties.
When a party so requests, the arbitral tribunal shall fix the dollar amounts of any deposits or supplementary retirement of any witness or witnesses during the dollar deposits. The arbitral tribunal shall do so only after consultation with the Arbitration Council. The Arbitration Council may make any comments to the arbitral tribunal it deems appropriate concerning the amount of such dollar deposits and supplementary dollar deposits.
If the required dollar deposits are not paid in full within thirty (30) days after the receipt of the request, the arbitral tribunal shall inform the parties, in order, that one or another of them may make the required payment. If such payment is not made, the arbitral tribunal may order the suspension or termination of the arbitral proceedings.
After the award has been made, the arbitral tribunal shall render an accounting to the parties of the deposits received and return any unexpended balance to the parties.

Article 38

Exclusion of Liability

Except in respect of deliberate wrongdoing, the IYBA, the arbitrator(s) and the Arbitration Council shall not be liable to any party for any act or omission in connection with any arbitration conducted under these Rules.

Article 39

Confidentiality

Subject to the provisions of Article 35, and except to the extent necessary in connection with a Court challenge to the arbitration, or an action for enforcement of an award, no information concerning an arbitration may be unilaterally disclosed by a party to any third-party unless it is required to do so by law or by a competent regulatory body, and then only:

(a) by disclosing no more than what is legally required, and;

(b) by furnishing to the Arbitration Council and to the other party (if the disclosure takes place during the arbitration), or to the other party alone (if the disclosure takes place after the termination of the arbitration), with details of the disclosure and an explanation detailing reasons for such disclosure.

Article 40

Simplified Claims Procedures

This section of the Rules is an integral part of the Rules and shall be deemed to govern the disputes described herein. Except as set forth in Article 40, Simplified Claims Procedures shall be governed by the Rules.

Should the amount claimed by each party not exceed twenty-five thousand dollars ($25,000), exclusive of interest and attendant costs, then the resolution of the dispute shall be governed by Article 40 of the Rules.
Should the amount claimed by each party exceed twenty-five thousand dollars ($25,000), but not exceed one million dollars ($1,000,000), then the resolution shall be governed by Article 40 of the Rules.
Unless the parties agree on a sole arbitrator and notify the Arbitration Council thereof in writing within fifteen (15) days from the day the notice of arbitration is deemed to have been received by respondent, the Arbitration Council shall appoint a sole arbitrator.
The sole arbitrator shall forthwith establish a schedule for submission of such documentary evidence as each party may wish to present. Either party may request a hearing, which may be granted at the discretion of the arbitrator, and the hearing shall not last more than one day.
The award shall be issued within either thirty (30) days of the last submission, or of the day of the hearing.
The fee of the sole arbitrator in a simplified claims procedure shall be three hundred and fifty dollars ($350) per hour, not to exceed two thousand five hundred dollars ($2,500) in total.

Article 41

General Claims Procedures

If the amount in controversy exceeds one million dollars ($1,000,000), the parties shall each appoint one (1) arbitrator and the two (2) arbitrators will jointly appoint a third arbitrator from the list of arbitrators maintained by the IYBA.
If they cannot agree on the third arbitrator within fourteen (14) days, either party may request that the IYBA appoint a third arbitrator. Either the decision of the single arbitrator (or, if a three-arbitrator panel), will be final and binding on the parties.

Article 42

Administrative and Other Fees

Administrative and other fees are set forth in the current fee schedule. The fee schedule may be requested from the Executive Director of the Arbitration Council, who may be contacted either by via mail, courier or email to the relevant addresses listed under the “Instructions” of these Rules.

Postponement Fees QP

Sole-Arbitrator Cases

An amount of one hundred dollars ($100) is payable by a party causing its first postponement of any scheduled hearing.

An amount of two hundred dollars ($200) is payable by a party causing its second or subsequent postponement of any scheduled hearing.

Three-Arbitrator Cases QP

An amount of one hundred and fifty dollars ($150) is payable by a party causing its first postponement of any scheduled hearing.

An amount of three hundred dollars ($300) is payable by a party causing its second or subsequent postponement of any scheduled hearing.

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ARTICLE 43

RECOMMENDED CLAUSES

The standard arbitration clause is set forth in both the IYBA Listing Agreement and the IYBA Purchase and Sale Agreement.

The language in those Agreements (listed as number 17) provides as follows:

Governing Law and Dispute Resolution. Check (a), (b) or (c). If none checked, (a) will apply. Any dispute involving this Agreement will be resolved: (a) [__] in the courts located in the State of _____________ (Florida, if left blank), (b) [__] by binding arbitration in the State of ___________ (Florida, if left blank), (c) [__] by binding arbitration in London, England. If (a) or (b) are selected: ) is selected: (i) this Agreement will be governed by and interpreted according to the law of the State of ____________ (Florida, if left blank) regardless of its principles of conflicts-of-laws and (ii) the proceedings will be conducted in the county of the main office of the Selling Broker, or if the Selling Broker has no office in Florida, in ___________________ (Fort Lauderdale, Florida, if no other city indicated). If (b) is selected, the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) in force when the arbitration is commenced will apply unless the following rules apply: _____________________ __________________. If the amount in controversy including counterclaims is not more than USD $1,000,000.00, the parties shall jointly select a single arbitrator from the list of arbitrators maintained by the International Yacht Brokers Association (“IYBA”) within twenty (20) days of the giving of notice of arbitration. If the parties are unable to agree upon the arbitrator, the IYBA shall have the power to make the appointment of the single arbitrator. If the amount in controversy is greater, the parties shall each appoint one arbitrator and the two arbitrators will jointly appoint a third arbitrator from the list of arbitrators maintained by the IYBA. If they cannot agree on the third arbitrator within 14 days, either party may request that the IYBA appoint the third arbitrator. The decision of the single arbitrator, or if a three-arbitrator panel, any two of them will be final and binding on the parties. An action may be brought in any court of competent jurisdiction to enforce any arbitral award or compel arbitration. If (c) is selected: (i) this Agreement will be governed by and interpreted in accordance with English law regardless of its principles of conflicts-of-laws, (ii) the parties irrevocably agree that any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Paragraph, (iii) the arbitration shall be conducted in accordance with the rules of London Maritime Arbitrators Association (“LMAA”) current when the arbitration is commenced, (iv) if the amount in dispute (including counterclaims) is less than USD $100,000, its Small Claims Procedure will apply, while if greater than or equal to USD $100,000 and less than USD $400,000, its Intermediate Claims Procedure will apply. Whatever option is selected, the parties irrevocably submit to the exclusive jurisdiction of such court or arbitral forum, waive any objection they now or hereafter may have to venue or convenience of forum, agree that all claims relating to the proceeding will be decided only in such court or arbitral forum and, further, not to bring any claim relating to this Agreement in any other court or arbitral forum. The parties, having had the opportunity to seek legal counsel, waive trial by jury for claims arising under this Agreement.

The parties may choose, when not using the clause above, to invoke arbitration council jurisdiction, by adopting any of the following clauses into their agreement:

Arbitration Clauses Recommended by the Arbitration Council

A Sample Clause for Arbitration

of Future Disputes QP

Any dispute, controversy, or claim arising from or relating to this contract or the breach, termination, or invalidity thereof shall be settled by arbitration in accordance with the Rules of Procedure outlined by the International Yacht Arbitration Council (the “Arbitration Council”) in effect at the commencement of the arbitration. The award shall be both final and enforceable by any court that may exercise jurisdiction.

Submission of Existing Disputes

If a contract does not contain an arbitration clause, but the parties desire to submit an existing dispute to arbitration under the Rules of Procedure set forth by the International Yacht Arbitration Council (the “Arbitration Council”), the parties are recommended to employ a submission agreement that complies with or consults the Arbitration Council. Compliance or consultation with the Arbitration Council should result in a document that is prepared with appropriate text for a proper submission to arbitration.

Submission Agreement

The undersigned hereby agree to submit to arbitration under the Rules of Procedure of the International Yacht Arbitration Council the following dispute: (describe briefly). We agree the award shall be both final and enforceable by any Court that may exercise jurisdiction.

Article 44

Certified Arbitrator List

The Certified Arbitrator List, as approved by the Arbitration Council, is available upon request following communication either by via mail, courier or email to the relevant addresses listed under the “Instructions” of these Rules.

Arbitration Council Rules January 2021