Read the full judgment text of HCCT 49/2010 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 21 December 2010 before Hon Reyes J.
Construction dispute — Arbitration agreement — Clause 16c in subcontract requires arbitration if certified interim payments remain unpaid after approximately 45 days — All interim certificates actually paid on time — Claim for further sums after final account not covered by clause 16c — Stay of proceedings refused — No arbitration agreement with guarantor Mr Siu — Claim against Mr Siu must proceed in Court — Exercising discretion against stay of entire action. Yau Lee, the head contractor, sued China Steel for approximately $10 million comprising material wastage, administration costs, and restitution. China Steel applied to stay the action relying on arbitration clause 16c. The Court held the clause only covers unpaid certified interim payments and does not extend to claims arising after final account assessment. Since all interim payments were made, the arbitration clause did not apply. Additionally, as the guarantor Mr Siu was not party to an arbitration agreement, the claim against him had to continue before the Court. Consequently, the Court declined the stay application and allowed the action to proceed. No costs or sentencing order was discussed.
Legal issues: Applicability of arbitration clause in cl.16c · Discretion to grant stay of proceedings
Outcome: Refusal of stay; China Steel’s application dismissed; action proceeds in Court
Cites 1 case