Read the full judgment text of HCCT 111/2022 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 5 October 2023 before Hon Mimmie Chan J.
Arbitration — Enforcement of Mainland arbitral award — Arbitration Ordinance Cap 609 s.95 — Public policy — Natural justice — Fair hearing — Arbitrator conduct — Service of documents — Tribunal constitution. The Applicant, Song Lihua, sought enforcement in Hong Kong of a Mainland arbitral award made by the Chengdu Arbitration Commission against Respondent Lee Chee Hon in a dispute over a share purchase contract. Lee challenged enforcement on multiple grounds including improper service, invalid arbitration agreement, and arbitrator misconduct alleging lack of meaningful participation during the 2nd Hearing. The court emphasized Hong Kong's pro-enforcement approach but upheld fundamental principles of natural justice and due process, including the fair hearing rule and the appearance of impartiality. It reviewed video evidence showing that one arbitrator was inattentive, frequently off-line, and disruptive during critical evidentiary phases. The court found that such conduct violated the minimum standards of justice and fairness required by Hong Kong public policy, thus enforcement must be refused despite the Mainland Court's supervisory endorsement of the award. Service and tribunal constitution irregularities were found either valid or waived by participation and lack of objection. Other complaints including failure to serve supplemental submissions and contract invalidity were not decisively determined in light of the overriding public policy ground. The Enforcement Order was set aside, enforcement refused, and costs awarded to Lee on an indemnity basis with 2 Counsel certificate.
Legal issues: Whether enforcement of the Award violates public policy due to arbitrator's conduct · Validity of service and notice of arbitration and tribunal constitution · Grounds other than arbitrator conduct for setting aside enforcement
Outcome: The Enforcement Order is set aside and enforcement of the Award is refused.
Cites 1 case