Hong Kong Court of Appeal rules on landmark case regarding escalation clauses

Herbert Smith Freehills has secured an important judgment from the Hong Kong Court of Appeal, C v D [2022] HKCA 729, regarding escalation clauses – contractual provisions which require negotiation or mediation before either party can begin formal proceedings. These clauses are intended to promote the efficient resolution of disputes, but often lead to costly litigation. … Read more

SINGAPORE HIGH COURT HOLDS THAT ARBITRATION CLAUSE MISNAMING AN ARBITRAL INSTITUTION IS VALID

The Singapore High Court has interpreted a potentially defective arbitration clause, which selected the “China International Arbitration Center” (a non-existent institution), as an agreement to CIETAC arbitration and therefore upheld an award issued by a CIETAC Tribunal. The Court held that, provided the parties objectively intended to refer to the same arbitral institution (rather than … Read more

MALAYSIA: HIGH COURT CLARIFIES LIMITS ON STAY CONDITIONS

The Malaysian High Court has refused to impose a condition on a party seeking a stay of proceedings under section 10 of the Arbitration Act 2005 to pay its share of the deposit in the arbitration, on the basis that the issue of costs and expenses of an arbitration are within the exclusive jurisdiction of … Read more

HONG KONG: ARBITRATION FAVOURED OVER LABOUR TRIBUNAL IN EMPLOYEE BONUS DISPUTE

In a recent Hong Kong Court of First Instance decision MAK v LA [2022] HKCFI 285, the Court was presented with a dispute arising from a bonus letter silent on dispute resolution mechanism, and with conflicting dispute resolution clauses in related contractual instruments, including the employment contract. The Court ultimately concluded that the arbitration agreement … Read more

HONG KONG COURT CONSTRUES INCONSISTENT DISPUTE RESOLUTION CLAUSES IN RELATED CONTRACTS

In a recent decision that involved interlinked agreements containing different dispute resolution clauses, the Hong Kong Court of First Instance refused to stay court proceedings in favour of arbitration, on the basis that the centre of gravity of the dispute did not fall within the contracts that contained the arbitration agreement. Zpmc-Red Box Energy Services … Read more