DANA SHIPPING AND TRADING SA v. SINO CHANNEL ASIA LTD

DANA SHIPPING AND TRADING SA v. SINO CHANNEL ASIA LTD

The court concluded the English court's judgment setting aside the Award was procedurally regular and should be given effect; exercising its residual discretion, the Hong Kong court declined to enforce the Award and set aside the Enforcement Order, Mareva injunction and Security Order, and ordered withdrawal of garnishee and statutory demand; Sino's second application was not abuse of process given the English judgment constituted a material change of circumstances but Sino's conduct affected costs.

Citation
DANA SHIPPING AND TRADING SA v. SINO CHANNEL ASIA LTD
Parties
Applicant/plaintiff: DANA SHIPPING AND TRADING SA; Respondent/defendant: SINO CHANNEL ASIA LTD
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 July 2016
Case Number
HCCT47/2015
Procedural Posture
Enforcement of Arbitration Award (hcct 47/2015) and Interim Relief Application (hcmp 1676/2016) / Decision on Applications (hearing Concluded)
Outcome
Enforcement Order set aside; Award not enforced by Hong Kong court
Legal Topics
Enforcement of Arbitral Awards, Set Aside of Enforcement Order, Mareva Injunction, Security for Costs, Res Judicata and Abuse of Process, Discretion to Recognize Annulled Awards
Source Language
EN
Arbitration Enforcement of Foreign Arbitral Awards Civil Procedure Recognition of Foreign Judgments Interim Relief Enforcement of Arbitral Awards Set Aside of Enforcement Order Mareva Injunction +3 more

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Parties

DANA SHIPPING AND TRADING SA

Applicant/plaintiff

SINO CHANNEL ASIA LTD

Respondent/defendant

Procedural Posture

Enforcement of Arbitration Award (hcct 47/2015) and Interim Relief Application (hcmp 1676/2016) / Decision on Applications (hearing Concluded)

Legal Issues

  1. 1 Whether Hong Kong court should enforce an arbitral award that has been set aside by the supervisory court at the seat
  2. 2 Whether a second application to set aside an earlier Enforcement Order is an abuse of process or barred by res judicata/issue estoppel
  3. 3 Whether the Mareva injunction and security orders should remain in place given the English court's annulment

Ratio Decidendi

The court concluded the English court's judgment setting aside the Award was procedurally regular and should be given effect; exercising its residual discretion, the Hong Kong court declined to enforce the Award and set aside the Enforcement Order, Mareva injunction and Security Order, and ordered withdrawal of garnishee and statutory demand; Sino's second application was not abuse of process given the English judgment constituted a material change of circumstances but Sino's conduct affected costs.

Court Disposition

Enforcement Order set aside; Award not enforced by Hong Kong court

Orders

  • Enforcement Order dated 16 November 2015 set aside
  • Declined to enforce the arbitral Award dated 3 February 2015