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

HONG KONG COURT REAFFIRMS PRO-ARBITRATION STANCE BY GRANTING STAY OF COURT PROCEEDINGS BROUGHT UNDER A SETTLEMENT AGREEMENT IN FAVOUR OF ARBITRATION

The judgment of the Hong Kong District Court (“Court“) in Gurkhas Construction Ltd v Craft Façade Tech (Hong Kong) Co Ltd is the latest example of the Hong Kong judiciary’s willingness to give effect to an arbitration clause wherever possible. In this case, the Court granted a stay of proceedings in favour of arbitration on … Read more

MALAYSIA: HIGH COURT REFUSES INDEMNITY COSTS ON SUCCESSFUL APPLICATION FOR REFERRAL TO ARBITRATION AND DETERMINES THE EFFECT OF TIME BARS ON A TRIBUNAL’S JURISDICTION

In Lineclear Motion Pictures Sdn Bhd v Measat Broadcast Network Systems Sdn Bhd (High Court Civil Appeal No.: WA-12ANCC-45-04/2021), the High Court refused to award indemnity costs to a party who successfully obtained a stay of court proceedings under section 10 of the Arbitration Act 2005 (“Act“), on the basis of the conduct of the … Read more

HONG KONG COURT CONSIDERS PERMISSIVE ARBITRATION CLAUSES

The Hong Kong Court of First Instance has stayed an action to arbitration where the agreement provided that disputes “may” be referred to arbitration. Kinli Civil Engineering Limited v Geotech Engineering Limited [2021] HKCFI 2503 Background Kinli commenced court proceedings to recover HKD 4,055,696.83, which it argued was due and owing from Geotech under a … Read more

MALAYSIA: HIGH COURT DECLINES TO STAY ARBITRATION PROCEEDINGS ON THE BASIS OF A NON-SIGNATORY’S ALLEGATION OF BRIBERY AND CORRUPTION UNDERLYING THE CONTRACT

In Vertex Superieur Sdn Bhd & Anor v Shell Malaysia Trading Sdn Bhd (Civil Suit No. BA-22C-5-03/2020), the Malaysian High Court refused to stay court proceedings brought in breach of an arbitration agreement on the basis that it was in the public interest that allegations by a non-signatory that an underlying contract was procured by … Read more