Hong Kong Court Remits Award For Serious Irregularity

Back whence it came: Hong Kong Court remits Award for serious irregularity

Herbert Smith Freehills review the decision in P v M [2018] HKCFI 2280, where the Hong Kong High Court considered the situation where an arbitral tribunal had decided liability and awarded sums as due on a basis not advanced. The court noted that this approach breached the “fundamental rule of natural justice that each party should be given the fair and reasonable opportunity to present its case and to deal with the case of its opponent” and, in the result, the relevant parts of the Award were declared a nullity and remitted the matter to the tribunal to hear submissions on the issues that it had decided were determinative.

The authors observe that where the facts demonstrate a clear instance of a party not being afforded a fair opportunity to present its case, the court will be slow to set aside an award when remitting it to the original tribunal is a more appropriate option.

About Phillip Rompotis

Phillip practices as a barrister and arbitrator in Hong Kong. He has over 25 years’ litigation and arbitration experience in commercial disputes relating to construction & engineering, financial services, joint venture & shareholders agreements, technology, trusts, property and landlord & tenant. He is a Fellow of the Chartered Institute of Arbitrators, the Singapore Institute of Arbitrators, the Malaysian Institute of Arbitrators, and a member of various lists/panels of arbitrators.

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