ARJOWIGGINS HKK2 LTD v. SHANDONG CHENMING PAPER HOLDINGS LTD

ARJOWIGGINS HKK2 LTD v. SHANDONG CHENMING PAPER HOLDINGS LTD

The court held that the 2017 Mainland proceedings fall within the broad arbitration clause in the JV Contract and largely re-litigate matters already determined by the Tribunal; Tong was sufficiently connected to the contractual disputes such that the injunction should extend to him; accordingly an anti-suit injunction was granted against the Respondent and Tong, and the Respondent's late application to adduce further expert PRC law evidence was refused as untimely.

Citation
[2018] HKCFI 93
Parties
Applicant (claimant in Arbitration): Arjowiggins HKK2 Limited; Respondent (respondent in Arbitration): Shandong Chenming Paper Holdings Limited; Defendant (2nd Defendant): Tong Chong; 3rd Party (joint Venture Company, in Liquidation): JV Company
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 January 2018
Case Number
HCCT53/2015
Procedural Posture
Arbitration Enforcement and Anti Suit Injunction / Interlocutory — Hearing of Summons for Anti Suit Injunction (application Decided)
Outcome
Anti-suit injunction granted against Respondent and Tong; application for leave to adduce further expert evidence dismissed
Legal Topics
Scope of Arbitration Clause, Stay/anti Suit Injunction, Res Judicata/issue Estoppel, Derivative Action, Non Signatory Injunctions, Admissibility of Expert Evidence
Source Language
EN
Arbitration Civil Procedure Company Law Anti Suit Injunction Enforcement of Arbitral Award Scope of Arbitration Clause Stay/anti Suit Injunction Res Judicata/issue Estoppel +3 more

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Parties

Arjowiggins HKK2 Limited

Applicant (claimant in Arbitration)

Shandong Chenming Paper Holdings Limited

Respondent (respondent in Arbitration)

Tong Chong

Defendant (2nd Defendant)

JV Company

3rd Party (joint Venture Company, in Liquidation)

Procedural Posture

Arbitration Enforcement and Anti Suit Injunction / Interlocutory — Hearing of Summons for Anti Suit Injunction (application Decided)

Legal Issues

  1. 1 Whether the 2017 Mainland proceedings fall within the arbitration clause in the JV Contract
  2. 2 Whether the Respondent's claims are derivative and therefore not bound by the arbitration agreement
  3. 3 Whether Tong (non-signatory) is entitled to protection of arbitration clause and injunction

Ratio Decidendi

The court held that the 2017 Mainland proceedings fall within the broad arbitration clause in the JV Contract and largely re-litigate matters already determined by the Tribunal; Tong was sufficiently connected to the contractual disputes such that the injunction should extend to him; accordingly an anti-suit injunction was granted against the Respondent and Tong, and the Respondent's late application to adduce further expert PRC law evidence was refused as untimely.

Court Disposition

Anti-suit injunction granted against Respondent and Tong; application for leave to adduce further expert evidence dismissed

Orders

  • Injunction granted restraining the Respondent from proceeding with the 2017 proceedings in the Intermediate People's Court of Weifang City and restraining further proceedings against Tong in respect of the same subject matter
  • Respondent to pay the Applicant's costs on an indemnity basis with certificate for two counsel