Singapore’s first cryptocurrency dispute to go to trial

There has been a significant increase in interest in, and the use of, cryptocurrencies in recent times. Cryptocurrencies are essentially de-centralised virtual currencies, which are not linked to any particular country, nor regulated by any central bank or monetary authority.

In late December 2017, the Singapore International Commercial Court (SICC) decided that the nation’s first dispute involving cryptocurrency merits a full trial. While this case does not involve questions of the legality of cryptocurrency itself, it involves issues relating to the manner in which such cryptocurrencies are traded.   Continue reading

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Filed under Singapore, South East Asia

Japan International Mediation Centre to open in Kyoto

It has recently been announced that a new “Japan International Mediation Centre” is to open in Kyoto, reportedly in early 2018.

Mediation is a form of alternative dispute resolution in which an independent third party helps resolve a dispute through negotiation. The opening of a new centre dedicated to resolving commercial disputes in this manner is an interesting – and welcome – addition to the international dispute resolution landscape in Japan.

To read more on this development, please click here.

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Filed under ADR, Japan

Amendments to the Singapore International Commercial Court Regime to strengthen Singapore as an international arbitration seat of choice

On 9 January 2018, amendments were passed to the Supreme Court of Judicature (Amendment) Act (“SCJA “) which clarify that the Singapore International Commercial Court (“SICC“) has jurisdiction to hear proceedings relating to international commercial arbitration.  The amendments also abolish the pre-action certificate procedure for applications to the SICC.

Established in 2015 as the ‘international’ division of the Singapore High Court, the SICC has gone from strength to strength in a short span of time, gaining a reputation for the quality and speed of judgments rendered. Since its establishment the SICC has heard 17 cases on matters ranging from construction, investment, banking and finance, and shipbuilding, all of which are high value cases involving international parties and counsel.

These latest amendments, along with the addition of four new esteemed international jurists to the SICC bench, are intended to further increase the popularity and usage of the SICC, and Singapore as a preferred seat of international arbitration. Continue reading

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Filed under Arbitration, Jurisdiction, South East Asia

Hong Kong Court confirms third party banks do not owe a duty of care to holders of Mareva Injunctions

The Hong Kong court has for the first time held that a third party bank does not owe a duty of care to the holder of a Mareva injunction. Applying the reasoning of an English decision, the Court of First Instance in Grasberg Capital Asia Limited v Bank of Communications Limited concluded that it was not fair, just or reasonable to impose such a duty of care and that it was ‘plain and obvious’ that one did not exist. Continue reading

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Filed under Hong Kong, Interim applications

Court of first instance considers auditor’s duty to detect and report irregularities in accounting statements

In Days Impex Ltd v Fung Yu [2017] HKEC 2269, the Court of First Instance refused to strike out a negligence claim brought against an audit firm for failing to detect a substantial fraud at two of its client companies, both of which are now in liquidation. Importantly, the Court held that an auditor’s duty is not as narrow as to be restricted to the provision of information and advice.  Instead, the duty can extend to detecting material irregularities in the client’s accounting statements and reporting any fraud or suspected fraud to the company (and, in some cases, to relevant regulatory or enforcement authorities). Continue reading

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Filed under Hong Kong

ICC and KLRCA sign MoU to promote dispute resolution in Asia

On 1 November 2017, the Kuala Lumpur Regional Centre for Arbitration (KLRCA) and the International Court of Arbitration of the International Chamber of Commerce (ICC) signed a Memorandum of Understanding (MoU), agreeing to work together to promote dispute resolution in Asia.

The signing of the MoU will further enhance the relationship between the two institutions, on top of their previous collaborations such as the ICC-KLRCA International Arbitration Conference in 2016 and the 1st ICC-KLRCA Vis Pre Moot earlier this year. More collaboration on training and other joint programmes is anticipated as part of the two institutions’ efforts under the MoU to increase the profile of arbitration in the region and to promote and develop Malaysia as an arbitration-friendly seat for arbitration in Asia. The MOU also provides for KLRCA will to provide hearing space to ICC and its users.

There has been a steep increase in cases over recent years in Malaysia administered by the KLRCA. Additionally, the ICC recently announced the establishment of its case management office in Singapore. This MoU can is evidence of the two institutions’ plans to further expand their presence in the Asia region.

In another interesting development, KLRCA will be renamed the “Asian International Arbitration Centre” in 2018, to coincide with its 40th anniversary and as part of the KLRCA’s initiative to be the leading arbitration hub in Asia.

If you have questions or would like further information, please contact Peter Godwin (Managing Partner) of Herbert Smith Freehills’ Kuala Lumpur office or your usual Herbert Smith Freehills contact.

Peter Godwin
Peter Godwin
Managing Partner - Kuala Lumpur
Email | Profile
+60 327775104

 

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Filed under Announcements, South East Asia

Hong Kong and Macao on verge of concluding a mutual service arrangement for civil and commercial proceedings

The Hong Kong Government plans to conclude an arrangement with the Macao Special Administrative Region for the mutual service of judicial documents in civil and commercial cases in December 2017.

The proposed arrangement is designed to overcome existing limitations in the current civil procedure rules (namely the Rules of the High Court (Cap. 4A) and the Rules of the District Court (Cap. 336H)) which has resulted in Hong Kong litigants only being able to rely on private means to effect service on persons in Macao. The proposal will designate authorities in each jurisdiction which will be able to request service by, or perform service for, the counterpart authority. Continue reading

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Filed under Announcements, Hong Kong, Jurisdiction

Hong Kong: who owns employees’ work product

The law recognises that employees may create valuable intellectual property during their employment, ownership of which should ordinarily rest with their employer. The recent case of Acron International Technology Ltd v Chan Yiu Wai [2017] 3 HKLRD 799 demonstrates how the law can protect an employer’s rights in respect of such intellectual property from misappropriation by an employee after the employment relationship ends. Continue reading

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Filed under Employment, Hong Kong

Dawn raids – are you ready?

Click here for a preview

Surprise inspections by governmental authorities are on the rise. Any company in any sector may be on the receiving end and obstructing a lawful raid is a criminal offence.

Therefore, it is essential to be prepared. Front line staff such as Reception and Security, through to the IT team, business units, legal counsel and management, need to know how to react and what information to provide.

Drawing on our experience, we have published a guide to help deal with a raid by any of the key authorities in Hong Kong. It provides step-by-step help with all aspects of a raid, as well as checklists of powers and duties, and a series of “golden rules” to follow. Since the guidance is practical, much of it can be deployed regardless of the jurisdiction and authority in question.

This publication should be a port of call as a dawn raid unfolds, along with our Dawn Raid Hotline. It accompanies our crisis prevention and management app (CrisisPM), which gives high level advice on what to do in a series of emergency situations, including a dawn raid. Details of the Hotline and app can be found in the guide.

We also provide dawn raid and broader crisis prevention and management training.

Please email asia.publications@hsf.com to request a hard copy of the guide (soft copies unavailable).

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Filed under Announcements

Hong Kong Court continues injunction in aid of foreign arbitral proceedings

In Ve Global UK Limited v Charles Allard Jr and Intelita Limited, HCMP1678/2017, 10 October 2017, the Hong Kong Court of First Instance continued injunctions and dismissed the Defendants’ allegation of abuse of process in respect of the Plaintiff’s delay in commencing arbitration proceedings in relation to the underlying dispute after having obtained urgent injunction orders against the Defendants. Continue reading

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Filed under Arbitration, Hong Kong, Interim applications