Read the full judgment text of HCCT63/2003 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 6 November 2003 before Hon Burrell J.
Arbitration — Interpretation of arbitration clause — Construction of dispute resolution provision under a Sub-Contract — Whether disputes over payment shortfalls and prolongation costs are covered — Application of Article 8 of UNCITRAL Model Law — Mandatory stay of court proceedings in favour of arbitration. The court examined Clause 15 of the Sub-Contract's dispute resolution provisions, rejecting the narrower construction limiting disputes to construction issues or to arbitration commencing only after contract completion. Instead, the clause was held to encompass any dispute arising under or in connection with the Sub-Contract, subjected to Hong Kong law, and mandated arbitration after determination, abandonment, or completion of the Sub-Contract Works. The Court relied on authoritative precedent to uphold this broader interpretation. The Court ordered a stay of proceedings, deferring questions of arbitrator jurisdiction and possible earlier arbitration commencement to the arbitrator. No sentencing was involved.
Legal issues: Interpretation of arbitration clause in Clause 15
Outcome: Stay of proceedings granted in favour of arbitration pursuant to the arbitration clause; arbitration to be commenced only after determination, abandonment, or completion of the Sub-Contract Works