Eternity Sky Investments Ltd v Xiaomin Zhang

Eternity Sky Investments Ltd v Xiaomin Zhang

Mrs Zhang was not a consumer under the CRA due to her functional link with the company as one half of the majority shareholding couple; the guarantee did not have a close connection with the UK; clause 2 was transparent and prominent; and, even if the CRA applied, clause 2 was not unfair. The appeal was dismissed and enforcement of the Hong Kong arbitration award was not contrary to public policy.

Parties
Respondent/claimant: Eternity Sky Investments Ltd; Appellant/defendant: Xiaomin Zhang; Intervener: Competition & Markets Authority
Jurisdiction
England and Wales
Judgment Date
06 October 2024
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Enforcement of Foreign Arbitral Awards, Public Policy Exception, Consumer Definition Under Consumer Rights Act, Transparency and Fairness of Contract Terms, Close Connection Test for Consumer Contracts
Arbitration Consumer Protection Conflict of Laws Enforcement of Foreign Arbitral Awards Public Policy Exception Consumer Definition Under Consumer Rights Act Transparency and Fairness of Contract Terms Close Connection Test for Consumer Contracts

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Parties

Eternity Sky Investments Ltd

Respondent/claimant

Xiaomin Zhang

Appellant/defendant

Competition & Markets Authority

Intervener

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether Mrs Zhang was a 'consumer' under the Consumer Rights Act 2015
  2. 2 Whether the personal guarantee had a close connection with the United Kingdom
  3. 3 Whether clause 2 of the guarantee was transparent and prominent

Ratio Decidendi

Mrs Zhang was not a consumer under the CRA due to her functional link with the company as one half of the majority shareholding couple; the guarantee did not have a close connection with the UK; clause 2 was transparent and prominent; and, even if the CRA applied, clause 2 was not unfair. The appeal was dismissed and enforcement of the Hong Kong arbitration award was not contrary to public policy.

Court Disposition

Appeal dismissed

Orders

  • Enforcement of the Hong Kong arbitration award is allowed
  • No relief granted to Mrs Zhang