Answer
The latest Lloyd’s Open Form is LOF 2024. Lloyd’s currently lists LOF 2024 and the Lloyd’s Salvage Arbitration Clauses (LSAC) 2024 as the current forms.
Why is it called “Open Form”?It is called an Open Form because when the salvage agreement is signed, the final salvage remuneration is left open rather than being fixed in advance.
The parties agree immediately that the salvor will render assistance, but the amount of the salvage reward is determined later:
- by mutual settlement, or
- by Lloyd’s arbitration if they cannot agree.
This allows salvage operations to start immediately without wasting critical time negotiating price.
LOF 2024 continues to state the traditional principle: “No Cure – No Pay.”
Key Updates Introduced in LOF 2024:
Fast-Track Documents-Only (FTDO) Procedure: Replaces the previous Fixed Cost Arbitration Procedure (FCAP). The FTDO applies automatically to disputes where the security demand is US $10 million or less, significantly accelerating dispute resolution and capping legal costs.
Mandatory Data Sharing & ESG Reporting: Salvors and property owners must now report anonymized data (salved values, final settlement amounts, and ESG metrics like oil/hazardous materials saved) to Lloyd’s within 60 days to improve industry transparency.
Modernization & Virtual Meetings: Formalizes remote/video hearings for arbitrators, removes outdated references (e.g., faxes), and replaces gendered terminology.