Arbitration agreement for cases of collision

Esbjerg, March 18, 19.. .

It is hereby agreedbetween the Captain, asaccredited represen­tative of the Owners ofthe ship m/v “Bornholm," sailing under Nor­wegian flag and registered at the port of Oslo, Norway, Party of

the first part, and the Captain of the Soviet m/v '‘Leningrad”, regis­tered atthe port of Leningrad, U.SS.R,, Party of the second part, as follows:

1. All disputes arisingbetween the parties hereto, in connection with the collision or thedamage to theproperty on shore or at sea by the ship m/v “Bornholm"and m/v '*Leningrad” whichoccurred on the 18th of March, 19atEsbjerg, both with regard to the

cause of the said collision oroccurrence and eventual liability of each party and to theamount of damages tobe paid —are hereby referred to arbitration in Moscow by the Maritime Arbitration Com­mission at the U.S.S.R.Chamber of Commerceand Industry.

2. Each party agreesforthwith to give security tothe other toan amount, which the otherparty shall require in accordance with thecircumstances of collision oroccurrence, through theMaritime Arbit­ration Commission, thissecurity being enforceable only bythe Mari­time Arbitration Commission to cover thelosses and expenses ofthe party at whoserequest it was given. Thesecurity shall be given insuch formas the Maritime Arbitration Commission maythink proper, but the Maritime ArbitrationCommission shall notbe held respon­sible either for the amount orform ofeffectiveness ofthe security.

3. The parties tothis agreement hereby agreenot todemand the arrest or detention of any ship of a party which has provided secu­rity in accordance with Paragraph 2 hereof,so long as that security remains effective.

Until the saidsecurity is given, the rights of the partiesto de­mand arrest ordetention of the ship remainunrestricted.

Note. State merchant ships, as provided by the Merchant Shipping Code of the U.S.S.R., may not be arrested.

4. Within 30days after the agreement has been signed each par­ty is entitled to choose an arbitratorfrom among themembers of the MaritimeArbitration Commission. Should bothparties orany one of them fail within this period to name arbitrators or arbitrator, the same shall be appointed bythe President of Maritime Arbitration Commission at hisdiscretion from among the members ofthe Mari­time Arbitration Commission. The parties hereto may, bymutual con­sent, leave the personal choice of arbitrators to theMaritime Arbit­ration Commission. In this event the Maritime Arbitration Commis­sion may entrust the settlementof the dispute to asole arbitrator appointed from among the members of theCommission.

The Maritime Arbitration Commissionshall inform the parties of the arbitrators orarbitrator appointed by the Commission within five days aftertheir appointment.

⁵- ^fh.^{e onus of}Priding evidence shall lie with the parties, yet the President ofthe Maritime Arbitration Commission and arbitra­tors may gather evidence also on their owninitiative and may requireeach of the parties to submit to the Maritime Arbitration Commis­sion, priorto the hearing of the case, detailed statements inwriting and such information and documents, which the President of the

Maritime Arbitration Commission or the arbitrators should consider essential for ascertaining the facts of the case. Whether or not any given evidence or any act of investigation (examination of witnesses, calling in ofexperts, inspection onthe spot) shall be admitted, de­pends on whether the arbitrators or arbitrator consider themto have any essential significance for the case.

5. The case shall be heard bythe arbitrators or arbitrator inopen session, both parties being invited to attend. The parties may con­duct their case either personally or throughtheir representatives, but the hearing of the case shall notbe postponed on account ofthe failure ofthe parties to attend. Parties desiringeither themselves or inthe person of their representatives toattend thehearing mustcom­municate tothe Maritime Arbitration Commission their legal addres­ses- indicating to whomnotices, summonses, etc. are tobe served. Should theparties fail to communicatetheir legaladdresses, the notices, summonses, etc. shall remain in the officeof the Maritime Arbitration Commission and shall be deemed to have been duly ser­ved tothe parties.

6. In the event of the dispute coming beforetwo arbitrators and their failing to agree they shall elect an Umpire from among the members of the Maritime Arbitration Commission. If thearbitrators fail to agree onan Umpire, the sameshall be appointed by the Pre­sidents of the Maritime Arbitration Commission from amongthe members of the Maritime Arbitration Commission at his own discre­tion. The arbitrators may yet beforethe hearing of the case agreeto appoint an Umpire totake part in the arbitration.

7. Disputes between the parties under this agreement shall be decidedpursuant to the provisions of the Merchant Shipping Code and other laws of the U.S.S.R. and the Union Republics, as well as to the Rules of the Brussels International Convention of September 23, 1910, “For Unification of Some Rules Concerning Collision of Vessels.”

8. The sum or sums awarded by the Arbitration Commission as well as the expenses of the arbitrationprocedure shall be paid by the parties in full accordance with the award of the arbitrators or of the Umpire as soon as this award comes into force. The President of the Maritime Arbitration Commission shall give instructions for the realization of the security in the manner agreed upon between the parties or settled inthe award.

W. Jansen Master of the m/v “Bornholm”

S. SidorovMaster of the m/v “Leningrad”