Read the full judgment text of HCCT 15/2021 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 31 August 2021 before Hon Mimmie Chan J.
Arbitration — enforcement and setting aside — Parent Company Guarantee governed by California law — arbitration agreement under Guarantee providing mandatory expedited binding arbitration for disputes related to Funding Schedule Payments — arbitrator’s jurisdiction limited to sole issue of payment compliance under Guarantee — Defendant’s Illegality Defence concerning licensure under underlying Construction Contract excluded from arbitrator’s jurisdiction — US Federal Court confirmed arbitration award and refused to vacate — Hong Kong Court gave due weight to US Court judgment, finding no grounds under section 89 Arbitration Ordinance to refuse enforcement — public policy exceptions not engaged — enforcement of Award ordered with costs against Defendant. The Defendant failed to establish invalidity of arbitration agreement, inability to present case, or public policy grounds to set aside the Award. Costs awarded to Plaintiff on indemnity basis.
Legal issues: Validity and enforceability of the Guarantee · Scope of arbitrator’s jurisdiction under clause 13 of the Guarantee · Whether grounds under section 89 of the Arbitration Ordinance were established to set aside the Award
Outcome: The application to set aside the Enforcement Order is dismissed.