LA DOLCE VITA FINE DINING CO LTD v. ZHANG LAN AND OTHERS

LA DOLCE VITA FINE DINING CO LTD v. ZHANG LAN AND OTHERS

Court held Hadkinson order appropriate: Zhang, already found in wilful contempt for failure to comply with disclosure orders, must purge contempt by full disclosure as condition to be heard on her voluntary summons; the summons to set aside enforcement orders was adjourned for three months on condition that respondents pay into court security equal to 40% of the total Awards and costs on indemnity basis, failing which the summons would be dismissed; on a preliminary view the Awards were manifestly valid and the respondents' challenge to tribunal composition under Article 27(3) of the CIETAC Rules was unlikely to succeed because the parties had contractually modified the rules and the...

Citation
[2020] HKCFI 622
Parties
Applicant (hcct 35/2019): LA DOLCE VITA FINE DINING GROUP HOLDINGS LIMITED; Applicant (hcct 36/2019): LA DOLCE VITA FINE DINING COMPANY LIMITED; 1st Respondent: ZHANG LAN; 2nd Respondent: GRAND LAN HOLDINGS GROUP (BVI) LIMITED; 3rd Respondent: QIAO JIANG LAN DEVELOPMENT LIMITED (formerly SOUTH BEAUTY DEVELOPMENT LIMITED)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 April 2020
Case Number
HCCT36/2019
Procedural Posture
Construction and Arbitration Proceedings (enforcement of CIETAC Awards) / Hearing of Hadkinson Application and Application to Set Aside Enforcement Orders; Decision on Interim Conditions, Security and Adjournment
Outcome
Hadkinson order granted against Zhang; summons to set aside enforcement orders adjourned conditionally; security ordered from respondents; costs awarded to applicant on indemnity basis.
Legal Topics
Hadkinson Order, Enforcement of Arbitral Awards, Setting Aside Awards, Security for Stay, Composition of Arbitral Tribunal, Disclosure Orders, Committal for Contempt, PRC and CIETAC Rules Interpretation
Source Language
EN
Arbitration Law Civil Procedure Enforcement of Foreign Awards Contempt of Court Hadkinson Order Enforcement of Arbitral Awards Setting Aside Awards Security for Stay +4 more

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Parties

LA DOLCE VITA FINE DINING GROUP HOLDINGS LIMITED

Applicant (hcct 35/2019)

LA DOLCE VITA FINE DINING COMPANY LIMITED

Applicant (hcct 36/2019)

ZHANG LAN

1st Respondent

GRAND LAN HOLDINGS GROUP (BVI) LIMITED

2nd Respondent

QIAO JIANG LAN DEVELOPMENT LIMITED (formerly SOUTH BEAUTY DEVELOPMENT LIMITED)

3rd Respondent

Procedural Posture

Construction and Arbitration Proceedings (enforcement of CIETAC Awards) / Hearing of Hadkinson Application and Application to Set Aside Enforcement Orders; Decision on Interim Conditions, Security and Adjournment

Legal Issues

  1. 1 Whether a Hadkinson order should be imposed on a contemnor to purge contempt before being heard on a voluntary application
  2. 2 Whether the respondents should be ordered to provide security as condition for adjournment/stay of enforcement proceedings
  3. 3 Whether CIETAC Arbitration Rules Article 27(3) applied and thus the tribunal was improperly constituted

Ratio Decidendi

Court held Hadkinson order appropriate: Zhang, already found in wilful contempt for failure to comply with disclosure orders, must purge contempt by full disclosure as condition to be heard on her voluntary summons; the summons to set aside enforcement orders was adjourned for three months on condition that respondents pay into court security equal to 40% of the total Awards and costs on indemnity basis, failing which the summons would be dismissed; on a preliminary view the Awards were manifestly valid and the respondents' challenge to tribunal composition under Article 27(3) of the CIETAC Rules was unlikely to succeed because the parties had contractually modified the rules and the...

Court Disposition

Hadkinson order granted against Zhang; summons to set aside enforcement orders adjourned conditionally; security ordered from respondents; costs awarded to applicant on indemnity basis.