Read the full judgment text of CAMP 364/2021 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 13 May 2022 before Hon Cheung and Chu JJA.
Arbitration — Enforcement and setting aside of arbitral awards — Issue estoppel — Common arbitrator in two arbitrations — Inconsistent findings on misrepresentation — Procedural fairness and natural justice — Duty of arbitrators to invite submissions — Confidentiality in arbitration — Security for costs — Discretionary refusal given award manifestly invalid — Structural integrity of arbitral process. Wisdom Glory Investment Limited and ADWO Media Holding Limited were parties to arbitrations under related agreements involving misrepresentation claims. Arbitration 1 ruled in Wisdom's favour; Arbitration 2 found misrepresentation in AW's favour with rescission of an agreement, with a common arbitrator participating in both. Wisdom sought to set aside Arbitration 2 award on issue estoppel and apparent bias grounds; bias failed. AW applied to enforce Arbitration 2 award and sought security; the Judge refused on grounds of manifest invalidity of Award 2 due to inconsistent findings not addressed by the common arbitrator and lacking procedural fairness, undermining the structural integrity of the arbitral process. The Court of Appeal upheld the refusal, emphasizing the arbitrator's duty to invite submissions when faced with inconsistent prior findings, the non-absolute nature of confidentiality in arbitration, and the lack of evidence of asset dissipation by Wisdom. Leave to appeal was refused; indemnity costs were awarded to Wisdom, with summary assessment at HK$130,740 and a prohibition on further oral reconsideration laid down.
Legal issues: Issue estoppel in arbitration awards · Discretion in ordering security for enforcement of arbitral award · Arbitrator's duty regarding confidentiality and fairness · Waiver of irregularity argument
Outcome: Application for leave to appeal dismissed; costs ordered on indemnity basis against AW.
Cited by 2 cases · Cites 3 cases