Read the full judgment text of CACV 56/2011 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 1 August 2011 before Hon Tang VP, Yeung JA, Chu JA.
Arbitration costs — Written settlement offers — Calderbank offers — Discretion to consider offers — Arbitration Ordinance (Cap. 341) s.23(3) — Domestic Arbitration Rules Article 18. The case concerns a dispute over costs awarded in arbitration proceedings between Kin Shing (Leung’s) General Contractors Ltd and The Chinese University of Hong Kong. The arbitrator made partial awards on liability, interest, and costs, with a costs order splitting costs before and after 23 July 2008 based in part on several written settlement offers made by the Respondent, albeit not classic Calderbank offers. The Claimant challenged the arbitrator's discretion to consider these offers as defective. The court reviewed whether an arbitrator may take into account written offers that are not proper Calderbank offers when exercising discretion on costs. It held that such offers may be taken into account as one factor among others, consistent with the broad interpretation of 'any written offer' under Article 18 of the Domestic Arbitration Rules and relevant case law. The costs award fell within the arbitrator’s ample discretion and thus no intervention was justified. The appeal was dismissed with costs.
Legal issues: Whether arbitrator may take into account written offers which are not proper Calderbank offers
Outcome: Appeal dismissed; costs award upheld