DANA SHIPPING AND TRADING SA v. SINO CHANNEL ASIA LTD

DANA SHIPPING AND TRADING SA v. SINO CHANNEL ASIA LTD

The Hong Kong court has a residual discretion to enforce an award annulled at the arbitral seat, but will give effect to a set-aside decision of the seat where that decision is entitled to recognition under ordinary principles of private international law; the English court's decision setting aside the award for lack of jurisdiction was procedurally regular and should be given effect, therefore enforcement was refused and the Enforcement Order and related orders were set aside.

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
HCMP1676/2016
Procedural Posture
Enforcement of Arbitration Award; Interim Relief (mareva Injunction) / Decision on Applications to Set Aside Enforcement Order and for Interim Relief (final on Enforcement)
Outcome
Enforcement Order and related interim orders set aside; award not enforced in Hong Kong
Legal Topics
Enforcement of Foreign Arbitral Award, Setting Aside Award, Recognition of Foreign Judgments, Security for Costs, Mareva (freezing) Injunction, Abuse of Process, Costs
Source Language
EN
Arbitration Civil Procedure Private International Law Injunctions Enforcement Proceedings Enforcement of Foreign Arbitral Award Setting Aside Award Recognition of Foreign Judgments +4 more

Case Brief

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Parties

Dana Shipping and Trading SA

Applicant / Plaintiff

Sino Channel Asia Ltd

Respondent / Defendant

Procedural Posture

Enforcement of Arbitration Award; Interim Relief (mareva Injunction) / Decision on Applications to Set Aside Enforcement Order and for Interim Relief (final on Enforcement)

Legal Issues

  1. 1 Whether Hong Kong court must refuse enforcement of an award that has been set aside by the supervisory court at the seat
  2. 2 Whether the court may entertain a second application to set aside an Enforcement Order previously dismissed by sanction
  3. 3 Whether the English judgment setting aside the award should be given effect in Hong Kong

Ratio Decidendi

The Hong Kong court has a residual discretion to enforce an award annulled at the arbitral seat, but will give effect to a set-aside decision of the seat where that decision is entitled to recognition under ordinary principles of private international law; the English court's decision setting aside the award for lack of jurisdiction was procedurally regular and should be given effect, therefore enforcement was refused and the Enforcement Order and related orders were set aside.

Court Disposition

Enforcement Order and related interim orders set aside; award not enforced in Hong Kong

Orders

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