GUIDE to CONCILIATION AT JSE

3. Proceedings of Conciliation

Statement

STATEMENT OF THE COMPLAINANT (Example) *1

Mr. Alan Peacemaker
Conciliator for MS HEISEI MARU Case

CONCILIATION REGARDING DISPUTE
OVER MS HEISEI MARU FORWARDING CONTRACT

Dear Sir;

Excellent Shipping Co., Inc., the Complainant in the above captioned case (the "Complainant") wishes to submit this statement under Section 8(1) of JSE Conciliation Rules and state the following.

Remarks*2

1. Excellent Shipping Co., Inc., accepted consignment by Japan Materials Kabushiki Kaisha (the "Respondent") for forwarding a machinery system (the "Cargo") to be loaded on board HEISEI MARU (5,000 d/t) (the "Vessel") at Hong Kong for discharge at Tokyo Port and the Vessel entered Tokyo Bay as scheduled. The Respondent requested to have the cargo discharged at Yokohama Port Wharf A because of congestion at Tokyo Port, and the Complainant discharged all the Cargo at Yokohama Port.

2. The Complainant and the Respondent exchanged a memorandum in this case with a special provision which reads "The forwarding shall be completed with the discharge of the Cargo at Tokyo Port or a nearby port designated by the cargo-owner". The Complainant is at no fault in having billed for their services since forwarding was thus completed as requested by the Respondent and the Complainant is in a position to bill Yen 30 million as the marine forwarding fee. Subsequent land forwarding is utterly irrelevant to the Complainant. Therefore, the Respondent's request for receipt of Yen 3 million to offset part of the cost for the land forwarding with the marine forwarding fee is unreasonable and unacceptable.

3. The Complainant is, however, willing to pay Yen 1 million as a consolation fee in view of the long standing business relationship between the parties, and anticipates the Respondent to act sincerely.

Enclosure: Memorandum for Cargo Forwarding dated April 1, 1994 (one copy)

Dated this 10th day of August, 1994

Complainant:: Excellent Shipping Co., Inc.; (Signed); John BAYSWATER, Representative Director

CC: Mr. Hardy STOCKMANN, Representative Director: Japan Materials Kabushiki Kaisha*3

[Comment]: There are two types of Statement.

Actual Conciliation Proceedings

The conciliation proceedings begin on a full scale after the initial statements are submitted by the parties. Conciliation takes place in a closed chamber. The procedure for the conciliation is set out in Sections 7 through 13 of the Conciliation Rules.

Submission of the statements and the hearing of the parties by the conciliator (Section 9 of the Conciliation Rules) are both considered to be very important for successful conciliation.

Notification of Appointment of Representative/Assistant

NOTIFICATION OF APPOINTMENT OF REPRESENTATIVE (Example)

Mr. Alan Peacemaker
Conciliator for MS HEISEI MARU Case

CONCILIATION REGARDING DISPUTE
OVER MS HEISEI MARU FORWARDING CONTRACT

Dear Sir;

Excellent Shipping Co., Inc. (the "Complainant") has selected the following person as its representative in the above captioned case and informs you of the same under Section 13(1) of JSE Conciliation Rules.

Representative for the Complainant:: Mr. John Goldburg
7-7, Nanabancho, Chiyoda-ku, Tokyo

Dated this 10th day of August, 1994

Complainant:: Excellent Shipping Co., Inc.
(Signed)
John BAYSWATER, Representative Director

CC: Mr. Hardy STOCKMANN, Representative Director: Japan Materials Kabushiki Kaisha

[Comment]: Each party may appoint a representative or an assistant as the need arises, and shall inform the other party and the conciliator of the name and the address of such representative or assistant using this form.; In conciliation proceedings, the appointment of a representative is quite rare except in the case of a party living in a far away place such as a foreign country because of the need for the parties to appear at the hearing and make statements in accordance with the instructions of the conciliator and to facilitate amicable settlement as soon as possible.

Notice of Determination of Conciliation Fee

NOTICE OF DETERMINATION OF CONCILIATION FEE (Example)

Mr. John BAYSWATER, Representative Director: Excellent Shipping Co., Inc.
Mr. Hardy STOCKMANN, Representative Director: Japan Materials Kabushiki Kaisha

CONCILIATION REGARDING DISPUTE
OVER MS HEISEI MARU FORWARDING CONTRACT

Dear Sirs:

You are informed of the decision of the conciliator regarding the cost for the above captioned conciliation and the manner of payment as per the following by applying mutatis mutandis Section 17 of JSE Conciliation Rules (the "Conciliation Rules").

Remarks

Conciliation fee: Yen 123,600*1 (including the consumption tax of Yen 3,600)

Ratio of sharing: The parties shall bear the conciliation fee on an equal basis

Manner of payment: Each party shall deduct the Yen 50,000 which they have already paid under Section 18 of the Conciliation Rules*2 from the Yen 61,800 which the party is to bear, and shall pay the remainder to JSE on or before September 5, 1994.

Dated this 30th day of August, 1994*3

Sincerely yours

    (Signed)
    Alan Peacemaker
    Conciliator

[Comment]

(Note 1): The cost of conciliation includes the fee for the conciliator, the administration costs incurred by JSE for the conciliation case, travel expenses and per diem expenses of the conciliator, fees for expert witnesses, if any, translation fees if any, and other fees and expenses as may necessarily be incurred. There is a tariff for the fee for the conciliator and the administration costs, but the final amount is to be determined by consultation between the conciliator and administrators of JSE. The amount given here is that which has been determined by the conciliator by adding together all the costs mentioned above.
(Note 2): It is provided that the parties may be asked to pay the cost of conciliation in advance on an equal basis according to the discretion of the conciliator. Advance payment is required in practice.
(Note 3): When the conciliation proceedings are over, the conciliator is to determine the cost of conciliation under Section 17(2) of the Conciliation Rules, and to notify the parties using this form. The date of the form shall be the date when the conciliation proceedings are deemed concluded.