Read the full judgment text of HCCT000020A/1999 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 24 May 1999 before The Hon Mr Justice Findlay.
Arbitration — Security for costs — Jurisdiction — Arbitration commenced before 1996 Ordinance — Defendant’s deliberate concealment of address — Order for security for costs and stay of arbitration ordered — Model Law articles on court intervention — Inherent jurisdiction to order disclosure — Costs — Indemnity basis ordered against defendant for unreasonable conduct. The plaintiff, owner of the M/V FU NING HAI, sought security for costs and disclosure of the defendant’s place of incorporation and registered address in arbitration proceedings. The arbitral tribunal declined jurisdiction due to timing before the 1996 Ordinance. The High Court found jurisdiction to order security for costs and held that the defendant’s deliberate concealment justified such orders. The court considered the parties’ contemplation of Hong Kong procedural rules and relevant authorities addressing non-resident arbitral parties. Quantum was fixed at HK$700,000. The arbitration was stayed until security was provided. The defendant’s undertaking made an order for disclosure unnecessary, but the court held it had inherent jurisdiction to order such disclosure to prevent abuse of process. Due to the defendant’s unreasonable conduct, indemnity costs were ordered against it. Key orders include security for costs, stay of arbitration, dismissal of defendant’s summons, and indemnity costs to plaintiff.
Legal issues: Order for security for costs and disclosure of defendant's address · Quantum of security for costs · Jurisdiction to order disclosure of defendant's details · Costs of the summons and order nisi for indemnity costs
Outcome: The court ordered the defendant to provide security for costs in the sum of $700,000 and stayed arbitration proceedings until security is provided; disclosure order for defendant’s details made unnecessary by defendant’s undertaking; defendant to pay plaintiff's costs on indemnity basis.