ALYK (H.K.) Limited v Caprock Commodities Trading Pty Limited and China Construction Bank Corporation [2015] NSWSC 1006

ALYK (H.K.) Limited v Caprock Commodities Trading Pty Limited and China Construction Bank Corporation [2015] NSWSC 1006

The Court held that s 8(2) of the International Arbitration Act 1974 (Cth) mandates enforcement of foreign awards except in limited circumstances not made out here; the respondent's allegations of bias and natural justice amounted to mere dissatisfaction with arbitral procedure and findings, and did not amount to real practical injustice or grounds under s 8(7)(b) or s 8(7A). The trustee is the proper defendant, and the limitation of liability under the trust applies only to the extent relevant for subsequent enforcement. The Court thus made orders enforcing the award and paying out the funds held by the Court.

Jurisdiction
Australia
Judgment Date
24 July 2015
Procedural Posture
Application to Enforce Foreign Arbitral Award / Final Hearing and Orders on Enforcement
Outcome
Orders for enforcement of foreign arbitral award as a judgment of the Court; payment out of funds held by the Court to Plaintiff; costs to Plaintiff; liberty to apply as to further relief on specified monetary sums.
Legal Topics
['enforcement of Foreign Arbitral Award' 'natural Justice in Arbitration' 'public Policy Defense' 'trusts and Trustees Liability' 'trust as Party to Contract']
['arbitration' 'equity'] ['enforcement of Foreign Arbitral Award' 'natural Justice in Arbitration' 'public Policy Defense' 'trusts and Trustees Liability' 'trust as Party to Contract']

Case Brief

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Procedural Posture

Application to Enforce Foreign Arbitral Award / Final Hearing and Orders on Enforcement

Legal Issues

  1. 1 ['Whether foreign arbitral award should be enforced as a judgment of the Court under s 8(2) of the International Arbitration Act 1974 (Cth)' 'Whether alleged arbitral bias or breach of natural justice justifies refusing enforcement under s 8(7)(b) and s 8(7A)(b) of the International Arbitration Act 1974 (Cth)' 'Whether the First Defendant, as trustee, is properly party to the proceedings and liable under the award subject to limitations']

Ratio Decidendi

The Court held that s 8(2) of the International Arbitration Act 1974 (Cth) mandates enforcement of foreign awards except in limited circumstances not made out here; the respondent's allegations of bias and natural justice amounted to mere dissatisfaction with arbitral procedure and findings, and did not amount to real practical injustice or grounds under s 8(7)(b) or s 8(7A). The trustee is the proper defendant, and the limitation of liability under the trust applies only to the extent relevant for subsequent enforcement. The Court thus made orders enforcing the award and paying out the funds held by the Court.

Court Disposition

Orders for enforcement of foreign arbitral award as a judgment of the Court; payment out of funds held by the Court to Plaintiff; costs to Plaintiff; liberty to apply as to further relief on specified monetary sums.

Orders

  • ['Pursuant to s 8(2) of the International Arbitration Act 1974 (Cth), the award published on 20 January 2015 is enforced as a judgment of the Supreme Court of New South Wales.' 'Order that the sum of US $20,000,000 paid into Court by the Second Defendant be paid to the Plaintiff together with any interest earned.'...