|
Common Questions and Answers regarding GCA Arbitrations and Procedures |
Who uses the GCA contract? What are the advantages of GCA arbitration? Are there alternatives to GCA arbitration? What role does the GCA play in the arbitration process and can they give legal advice? Suppose the arbitrators have a question regarding the rules of arbitration? Who initiates an arbitration, the buyer or the seller? Is it necessary to be a member of the GCA to arbitrate? Where do I get forms and what forms do I have to file? Explain the process. What happens during an arbitration? Is there any time limit for filing? How are arbitrators designated? How is impartiality maintained? What types of arbitrations are there and can the parties be present? What happens during an oral hearing? Can one bring an attorney? How are issues of grade or quality resolved? How is confidentiality maintained? Can decisions be appealed?  Click here to view "Usual Good Quality" Chart. |
Who should be members of the GCA?Any individual or company dealing with the export, transport, storage, insuring, financing, importing, trading and/or roasting of green coffee will benefit from GCA membership. Certainly all those using the Green Coffee Contract of the GCA should be members.top Who uses the GCA contract?The GCA contract is the most widely used contract between North American counter parties and all the coffee producing countries of the world.top What are the advantages of GCA arbitration?Arbitration is an impartial and cost effective method of resolving disputes between contract parties. Over the years GCA members have saved significant amounts of money in legal expenses by resorting to GCA arbitrations to settle misunderstandings.top Are there alternatives to GCA arbitration?Under the GCA contract arbitration is the sole remedy for controversies.top What role does the GCA play in the arbitration process and can they give legal advice?The GCA itself does not act as an arbitrator, nor does it exercise judicial functions or give legal advice. It does administer the arbitration procedures and rules and it designates the arbitrators who conduct the hearings and determine and decide the issue. The arbitrators alone have the power and authority to make an award.top Suppose the arbitrators have a question regarding the rules of arbitration?If the majority of the arbitrators deem it necessary, they can ask any questions as to the interpretation of the Rules of Arbitration for a written opinion by the Board of Directors of the GCA or by a committee which the Board may designate for that purpose.top Who initiates an arbitration, the buyer or the seller?Either party to a contract may demand arbitration on any tendered portion of a contract, unless provided for otherwise in the contract.top Is it necessary to be a member of the GCA to arbitrate?It is not necessary to be a member of the GCA to arbitrate; however, being a member means paying lower arbitration fees.top Where do I get forms and what forms do I have to file?All requests and questions should be referred to the GCA offices in New York. Any person seeking arbitration must sign in triplicate a Demand for Arbitration form A-1 or A-2 following the instructions provided by the Association.top Explain the process. What happens during an arbitration?One party files and the other is given the opportunity to answer; or, if both parties agree on a single clear, concise, and complete statement of the facts and the issues in dispute, they may file jointly using Form C-1 or C-2. In all cases, all forms must be signed and notarized. After all statements and replies have been submitted, the Secretary covenes an arbitration panel to conduct the arbitration.top Is there any time limit for filing?The time limit for acceptance of grade and quality in any arbitration is governed by the claims clause in the terms and conditions of the contract. In practice these limits may be waived with both sides consenting to a "no time bar" in writing.top How are arbitrators designated?The GCA maintains a list of Official Arbitrators qualified to judge matters of grade and/or quality or technical issues. The GCA Secretary determines from the nature of the controversy which classification of arbitrators shall be selected. The Secretary removes from this list the names of individuals known to be directly or indirectly employed or connected with either party and chooses a panel of three arbitrators by lot.top How is impartiality maintained?Prior to the commencement of any arbitration each selected arbitrator is directed to state in writing or orally to the Secretary that there is no circumstance known to him which does or might create any bias or appearance of bias or interest on his part and that there is no fact known to him which might disqualify him. He also must state that he is knowledgeable about the type of coffee at issue in a quality arbitration or the subject matter at issue in a technical arbitration.top What types of arbitrations are there and can the parties be present?There are basically two types of arbitrations: quality and technical. Parties are not present at arbitrations involving grade or quality issues only. Parties may elect to appear for arbitration hearings on technical issues or waive this right.top What happens during an oral hearing? Can one bring an attorney?Each party has the right to be heard, present evidence pertinent and relevant to the issues and cross-examine witnesses, if any. Any party may be represented by counsel upon proper notification.top How are issues of grade or quality resolved? How is confidentiality maintained?Variations from the grade or cup quality described in the contract are the only basis for a grade or quality arbitration. An official sampler draws samples on behalf of the Association. Coffee must be sampled on the dock, or original terminal in the case of breakbulk discharge, or from the stripping location, such as a dock, container freight station, terminal, or any warehouse in the case of containerized discharge for quality claims to be enforceable. The arbitrators grade and cup coffee on a blind basis, i.e., without knowing the identities of the parties involved or having any identification such as marks, lot numbers, vessel names from the samples submitted.top Can decisions be appealed?Yes. Either party to an arbitration may appeal the original award, in which case a new panel of arbitrators is convened. Appeals are judged by a panel of five (5) arbitrators as opposed to the usual three (3).This is intended only as a summation. Please refer to the Rules of Arbitration as contained in the By-laws and Rules of the Green Coffee Association, Inc. for more complete information. top |