ALPHA BUILDING CONSTRUCTION LTD v. BEST PARTNER LTD

ALPHA BUILDING CONSTRUCTION LTD v. BEST PARTNER LTD

The application to consolidate is dismissed because the two arbitrations do not raise sufficiently common questions of fact and law to justify consolidation and because consolidation would disproportionately prolong the Sub-Contract arbitration and increase costs; issues of attribution of delay to Styletec are not material to Alpha's entitlement to an extension of time in the Main arbitration, overlapping defect claims are minor, and the Sub-Contract dispute can be resolved separately (including any architect's certificate issue).

Citation
ALPHA BUILDING CONSTRUCTION LTD v. BEST PARTNER LTD
Parties
Claimant (1st Arbitration); Respondent (2nd Arbitration): Alpha Building Construction Ltd; Respondent (1st Arbitration); Employer: Best Partner Ltd; Claimant (2nd Arbitration); Nominated Sub Contractor: Styletec Building Materials Ltd
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 May 2007
Case Number
HCCT80/2006
Procedural Posture
Construction and Arbitration Proceedings (main Contract and Sub Contract Arbitrations) / Application to Consolidate Arbitrations; Pleadings Closed in Main Contract Arbitration; No Arbitrator Appointed and No Pleadings in Sub Contract Arbitration
Outcome
Alpha's application to consolidate the Main Contract arbitration and the Sub-Contract arbitration is dismissed
Legal Topics
Consolidation of Arbitrations, Extension of Time, Delay and Liquidated Damages, Earmarking of Payments, Arbitrator Jurisdiction and Procedural Efficiency
Source Language
EN
Arbitration Construction Law Contract Law Civil Procedure Consolidation of Arbitrations Extension of Time Delay and Liquidated Damages Earmarking of Payments +1 more

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Parties

Alpha Building Construction Ltd

Claimant (1st Arbitration); Respondent (2nd Arbitration)

Best Partner Ltd

Respondent (1st Arbitration); Employer

Styletec Building Materials Ltd

Claimant (2nd Arbitration); Nominated Sub Contractor

Procedural Posture

Construction and Arbitration Proceedings (main Contract and Sub Contract Arbitrations) / Application to Consolidate Arbitrations; Pleadings Closed in Main Contract Arbitration; No Arbitrator Appointed and No Pleadings in Sub Contract Arbitration

Legal Issues

  1. 1 Whether the two arbitrations raise sufficiently common questions of fact and law to justify consolidation
  2. 2 Whether attribution of delay to the nominated sub-contractor (Styletec) is a common issue material to the Main Contract arbitration
  3. 3 Whether the earmarking by Best Partner of $414,000 affects the Main Contract arbitration

Ratio Decidendi

The application to consolidate is dismissed because the two arbitrations do not raise sufficiently common questions of fact and law to justify consolidation and because consolidation would disproportionately prolong the Sub-Contract arbitration and increase costs; issues of attribution of delay to Styletec are not material to Alpha's entitlement to an extension of time in the Main arbitration, overlapping defect claims are minor, and the Sub-Contract dispute can be resolved separately (including any architect's certificate issue).

Court Disposition

Alpha's application to consolidate the Main Contract arbitration and the Sub-Contract arbitration is dismissed

Orders

  • Application to consolidate dismissed
  • Parties to be heard on costs