Read the full judgment text of HCMP 1010/2017 on BabelCite. This Court of First Instance judgment was delivered on 21 September 2017 before Anthony Chan J.
Civil proceedings – Mareva injunction – continuation of ex parte order in aid of foreign arbitration – Arbitration Ordinance (Cap 609) s.45 – High Court Ordinance (Cap 4) s.21M – interim relief in support of London arbitration between Liberian shipowner and UAE container line operator – charterparty dispute over unpaid hire, repositioning costs and alleged underperformance of vessel – whether plaintiff has established real risk of dissipation of assets essential to Mareva relief – whether mere allegation of "unacceptably low commercial morality" is sufficient – principles restated from Eastman Chemical v Heyro Chemical (No 2), Honsaico Trading v Hong Yiah Seng, Pacific Concepts v Michel Brennion, Grandview Industries v Leung Yiu Kei, Arrow ECS Norway v Xin Cheng Holdings, TTMI v ASM Shipping, Mobil Cerro Negro v PDVSA, and IOT Engineering Projects v Dangote Fertilizer – standard of proof relatively high, solid evidence required, objective test – propensity evidence alone insufficient unless conduct at or very close to fraud or dishonesty end of spectrum – defendant's financial standing and presence in New York Convention jurisdictions relevant – held: plaintiff failed to establish real risk of dissipation – Emirates Shipping a substantial international company incorporated since 2006, with headquarters in Dubai and Hong Kong, over 30 offices worldwide, 250 staff, US$280 million turnover, owning a Dubai office property valued at US$2.65 million – alleged misconduct amounted at most to a party using an untenable excuse to exit a bargain, i.e. sharp practice rather than fraud or dishonesty – UAE being party to the New York Convention supports enforceability of any London award – separate issue on inclusion of arbitration costs in Mareva injunction – generally inappropriate to include costs of intended proceedings in freezing order – such inclusion effectively grants security for costs, which the arbitral tribunal would need to have power to order – uncertainties over costs entitlement and unfairness to recipient – no authority or proper quantum justification offered – court did not need to decide the point finally – Injunction discharged; Originating Summons dismissed; costs to Emirates Shipping, to be taxed if not agreed.
Legal issues: Real risk of dissipation for continuation of Mareva injunction · Inclusion of costs of intended arbitration in Mareva injunction
Outcome: Mareva Injunction discharged; Originating Summons dismissed
Cited by 2 cases · Cites 4 cases