The English Court of Appeal has held that, where an auditor negligently failed to detect management’s dishonest concealment of the claimant’s insolvency, it was liable for the losses suffered by the claimant in continuing to conduct its loss-making business: Assetco Plc v Grant Thornton UK LLP [2020] EWCA Civ 1151. While the decision recognises that … Read more

In Hong Ziyun v Chan Kwan Ming [2019] HKCFI 2125, the Court of First Instance considered the relevant jurisdiction applicable to a host of related loan documents where only one of the documents contained an express jurisdiction clause (in favour of the court of Xiamen in Mainland China). The defendants applied for a stay of … Read more

As has been well publicised, the new Singapore Convention seeks to establish a global enforcement regime for settlement agreements resulting from mediation in cross-border commercial disputes. Signed on 7 August 2019 by 46 countries, the Convention could feasibly be in operation as early as the first half of next year (it will enter into force … Read more

On 15 October, 2018, the Hong Kong Competition Commission (“Commission”) published a decision (“Decision”) finding that the Code of Banking Practice (“Code”) is not excluded from the application of the First Conduct Rule under the Competition Ordinance (“Ordinance”). The Decision was taken in response to an application for exemption under section 9 of the Ordinance made in respect of the Code (the “Application”). The Application was made in December 2017 by 14 institutions authorised under the Banking Ordinance (“AIs”). Although the Commission found that the Code is not excluded from the application of the First Conduct Rule, nevertheless, it states that it has no current intention to further investigate or pursue regulatory action in respect of the current version of the Code. Read more

In Neo Intelligence Holdings Ltd v Giant Crown Industries Ltd HCA 1127/2017, the Hong Kong Court of First Instance held that an arbitration clause was not necessarily superseded by a clause in a supplemental agreement that conferred non-exclusive jurisdiction on the Hong Kong courts. While the two clauses did not sit “wholly happily” together, it … Read more

Herbert Smith Freehills has launched the latest edition of its practical guide, "Governing law and dispute resolution clauses for China-related contracts‎". Popularly known as 'The Dragon Book', the guide helps in-house lawyers negotiating China-related commercial contracts to understand the workings of Mainland Chinese law as it affects choice of law and other options for resolving … Read more

Chief Justice Sundaresh Menon: Adjudicator, advocate, or something in between? Coming to terms with the role of the party-appointed arbitrator The Herbert Smith Freehills-SMU Asian Arbitration Lecture Series was established in 2010 and was made possible by a term fund contribution by Herbert Smith Freehills LLP, Singapore. The objective of the Lecture Series is to … Read more

In the recent case of Joseph Ghossoub v Team Y&R Holdings Hong Kong Ltd and others, the Hong Kong High Court considered issues of third party rights, jurisdiction clauses and forum in the context of an unfair prejudice petition. In considering whether the Hong Kong action ought to be stayed pursuant to a jurisdiction clause … Read more