Legal Affairs

Frequently Asked Questions

A party which wrongfully fails to perform its contractual obligations may be liable to compensate for its failure.
In the coffee trade arbitration is the usual agreed contractual mechanism aimed at achieving this.
For over 50 years the Coffee Associations in Hamburg and London have provided arbitration services to the international coffee trade. These services are now provided:
  • in London – by the British Coffee Association (the BCA)
  • in Hamburg – by the Court of Arbitration of the German Coffee Association at Hamburg Chamber of Commerce (the CAHH)
There are some fundamental differences between the arbitration procedures in London and Hamburg – but many similarities.

If I have a dispute, and cannot reach an agreement with my counterparty, how do I commence arbitration?

London and Hamburg publish standard checklists to help parties wishing to commence arbitration:

What will it cost?

In Hamburg the fees and expenses of the arbitrators, and the fees and expenses of the CAHH, are calculated at the outset, according to the amount of the claim. These fees include the costs of a legal adviser for the arbitration board attending the whole proceeding. A calculator can be accessed at the following link.
Security for the full amount will be required at the outset.
In London, the arbitrators’ fees are calculated on an hourly basis. In London the arbitrators determine whether or not security for these costs is required, and if so when it must be provided, and in what amount. Similarly in London the arbitrators decide if they need legal advice – and so the cost of a legal adviser to the arbitrators will be incurred only if the arbitrators decide a legal adviser is needed. The award will state which party will be responsible for these costs.

Who are the arbitrators?

In Hamburg each party appoints an arbitrator of its own choosing. Party-appointed arbitrators will have to be involved in the coffee trade. The party-appointed arbitrators will then appoint a Chairman. It is not compulsory for Chairmen to be involved in the coffee trade – but in most of the cases they will be.
In London three arbitrators will be appointed by the British Coffee Association from its panel of arbitrators. All arbitrators are involved in the coffee trade and have attended a London Arbitrator Training Course prior to their appointment to the panel of Arbitrators.

How long is it going to take?

Both London and Hamburg have a standard timetable for the parties to present their submissions and evidence to the arbitrators. Both in London and Hamburg, awards may be expected to be made within approximately 10 weeks from the time the arbitrators have received all evidence and submissions, written and verbal, and convened to consider the same. Obviously this time period may be shorter on occasion, but lengthier where matters are relatively complex.

Which procedural law is applied?

With regard to procedure the rules of the BCA or CAHH are governed and supplemented by English procedural law in London and German procedural law in Hamburg. It is a fundamental legal requirement of an arbitration service that it must have its legal “seat” firmly established within the law of a specific country.

Where will proceedings be held and in what language?

London proceedings and awards are in English. Hamburg proceedings are in German or English – but awards are rendered in German only. However CAHH provides help with regard to the translation of awards into any language. The venue of any hearings, of course, will typically be London or Hamburg depending on the choice of association. However, in the discretion of the arbitrators, the geographical venue may be elsewhere.

Can I appeal against an award?

Both in London and in Hamburg there are limited rights, in certain restricted circumstances, to appeal to the local courts. However, in London, there is also the right to appeal to a separate Board of Appeal, made up of arbitrators from the British Coffee Association’s panel of arbitrators.

Can an award be enforced?

Awards are enforceable, in particular, under the New York Convention. 
The Court of Arbitration of the German Coffee Association at Hamburg Chamber of Commerce website may be found at: www.hk24.de/kaffeeschiedsgericht
The British Coffee Association website may be found at: www.britishcoffeeassociation.org
You may also visit www.kaffeeverband.de for further information.