Hong Kong Court rejects set aside application U v A and others [2017] HKCFI 398 The High Court dismissed an application to set aside an order enforcing an arbitration award rendered in Hong Kong.  Consistent with recent decisions, the Court emphasised that challenges to enforcement based on technical grounds or procedural complaints would not be entertained unless due process was seriously undermined. Facts The dispute arose in relation to an agreement (referred to as the Preliminary Assignment Contract (“PAC”)) made between U as the purchaser and A as the seller for the sale and purchase of 51% of the shareholding in a company in FujianRead More →

Hong Kong Court rejects set aside application U v A and others [2017] HKCFI 398 The High Court dismissed an application to set aside an order enforcing an arbitration award rendered in Hong Kong.  Consistent with recent decisions, the Court emphasised that challenges to enforcement based on technical grounds or procedural complaints would not be entertained unless due process was seriously undermined. Facts The dispute arose in relation to an agreement (referred to as the Preliminary Assignment Contract (“PAC”)) made between U as the purchaser and A as the seller for the sale and purchase of 51% of the shareholding in a company in FujianRead More →

Re-measurement clause considered by the High Court Chan Chi Lam v Lam Woo & Co Ltd [2017] HKCFI 421 Facts The Plaintiff claimed HK$4.8M for work done against the Defendant (“the JV”), who was the main contractor engaged by the Water Supplies Department (“WSD”) under Contract No. 22/WSD/02 for the replacement and rehabilitation of water mains in Cheung Sha Wan Kwai Chung and Tsing Yi. The claim comprised 58 works orders: some of them allegedly subject to re-measurement, on a back-to-back basis against what the WSD/its engineers assessed and certified on their re-measurement of the works under the main contract as the re-measurement clause hadRead More →

28 August 2017 We are very pleased to announce that Phillip Rompotis has joined Cordells law firm and that the firm is now to be known as Cordells Rompotis. Our partnership brings together market leading lawyers, Hilary Cordell and Phillip Rompotis and their teams, to provide bespoke legal services focusing on real estate development, projects, transactions and consultancy; and construction, property and commercial dispute resolution including international arbitration. Hilary Cordell is a real estate lawyer with over 30 years’ experience in Asia. Her work focuses on investment acquisitions and disposals; the planning, development, construction, leasing and management of all types of commercial real estate; rentRead More →

Contractual Real Estate Issues – Notes for End Users Introduction Companies are increasingly moving their data centre requirements offsite. Benefits include more efficient use of office space and cost savings in the form of cheaper rents for non-office space, which can be located outside of the main business districts; economies of scale through the sharing of power and cooling; and greater operational security through the provision of diverse power and cabling routes to the data centre, and extensive on-site security. There are however risks which need to be managed in order to ensure continuity of service and data security. This paper discusses some of theRead More →

Registration of Leases for 3 Years or Less (Risks of Under-Value Rents) Option Invalid for Uncertainty Registration of Options to Renew and Exercise Notices Tse Siu Hoi v Lee Dick Gold and Jewellery Ltd, Lands Tribunal [2015] HKCU 2007 Summary An unclear “option to renew” in a tenancy agreement was held to be invalid.  Further, neither the option nor its exercise had been registered and the rent was at less than the market rent. A purchaser from the original landlord was not bound by it and acceptance of rent after the end of the term did not change this. The case highlights: The risk for aRead More →

Enforcement of arbitration awards: Is there a difference between awards set aside or refused recognition in the seat? PT First Media v Astro Leave to Appeal The Appeal Committee of the Court of Final Appeal in Hong Kong granted leave to First Media to appeal the Court of Appeal’s decision confirming the first instance decision to refuse First Media’s application to seek leave out of time to resist enforcement of Singapore awards which were made without jurisdiction. (Click here for the Determination from the Court of Final Appeal) Awards set aside at the seat When an award is set aside (annulled) at the seat of arbitration,Read More →

Design & Build Design Liability MT Højgaard A/S v E.ON Climate & Renewables & Ors [2017] UKSC 59 In a decision handed down on 3rd August 2017, the Supreme Court of England found a contractor liable to the employer for the design of foundation structures of two offshore wind farms notwithstanding that the design complied with J101, an international standard specified in the technical requirements. Facts J101 is an international standard for the design of offshore wind turbines published by Det Norske Veritas, an independent classification and certification agency based in Norway, providing “an internationally acceptable level of safety by defining minimum requirements for structuresRead More →

Rejection of a Set Aside Application Arjowiggins HKK2 Limited v X Co [2016] HKCFI 1901 The Hong Kong Court of First Instance firmly rejects a set aside application under the Arbitration Ordinance. Background By a contract entered into between the parties in 2005 it was agreed that a joint-venture company be established in the Mainland to manufacture paper products. Under the JV Contract, the Respondent undertook that the JV Company “shall have a continuous and stable supply of power, water, steam and wastewater treatment facilities at affordable rates in accordance with the terms and conditions of each of the Related Contracts”. Pursuant to the JV Contract, the Respondent andRead More →

Caution when suspending contract works and reducing scope and price Ipson Renovation Ltd v The IO of Connie Towers [2016] HKEC 2719 In a decision of the Hon. Mimmie Chan J on 16th December 2016, the High Court considered a claim for repudiatory breach arising out of an instruction to suspend works and an employer’s efforts to reduce the scope of the works and the contract sum. Background By a contract dated 26 April 2013 the Incorporated Owners engaged the Contractor to carry out repair and maintenance works at Connie Towers for a contract price of HK$37,074,090. The scope of works was set out in a “ListRead More →