LIM CHOON HOCK otherwise known as WILLIAM LIM AND ANOTHER v. HUNG KA HAI CLEMENT AND OTHERS

LIM CHOON HOCK otherwise known as WILLIAM LIM AND ANOTHER v. HUNG KA HAI CLEMENT AND OTHERS

The Court granted the stay because the Plaintiffs' pleaded claims indisputably fall within the broad arbitration clause in clause 8.12; the Plaintiffs' contention that the clause had been exhausted is unfounded and there remain unresolved disputes for arbitration; accordingly the arbitration agreement is capable of performance and the Court must stay the proceedings under the Arbitration Ordinance. Costs awarded to defendants on an indemnity basis.

Citation
LIM CHOON HOCK otherwise known as WILLIAM LIM AND ANOTHER v. HUNG KA HAI CLEMENT AND OTHERS
Parties
1st Plaintiff: LIM CHOON HOCK otherwise known as WILLIAM LIM; 2nd Plaintiff: FONG WAI LING otherwise known as CANDY FONG; 1st Defendant: HUNG KA HAI CLEMENT; 2nd Defendant: CHEUNG KWONG TAT TERENCE; 3rd Defendant: HUNG TING ON JOHN; 4th Defendant: KAY MAN WO DICK; 5th Defendant: LIU MING HUA DORA; 6th Defendant: MENG XIAO FAN DENKEN; 7th Defendant: NG KA YUEN KEVIN; 8th Defendant: TANG YING CHEUNG ERIC; 9th Defendant: TONG YAM KWONG DANNY; 10th Defendant: TSAI WING CHUNG PHILIP; 11th Defendant: YANG YING ROSA; 12th Defendant: ZHANG BOA YUN PAULINE; 13th Defendant: FRANK FRIEDMAN; 14th Defendant: MAH CHEE KHEONG CHALY; 15th Defendant: YOICHIRO OGAWA; 16th Defendant: CHIA KEE LOONG LAWRENCE
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 August 2016
Case Number
HCA1282/2016
Procedural Posture
Commercial/shareholder Dispute Involving Arbitration Clause / Application to Stay Proceedings to Arbitration; Judgment Granting Stay
Outcome
Stay granted; costs awarded to defendants on indemnity basis.
Legal Topics
Stay to Arbitration, Arbitration Clause Exhaustion, Ultra Vires/disciplinary Jurisdiction, Natural Justice, Fiduciary Duties, Costs
Source Language
EN
Arbitration Contract Company/partnership Law Civil Procedure Stay to Arbitration Arbitration Clause Exhaustion Ultra Vires/disciplinary Jurisdiction Natural Justice +2 more

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Parties

LIM CHOON HOCK otherwise known as WILLIAM LIM

1st Plaintiff

FONG WAI LING otherwise known as CANDY FONG

2nd Plaintiff

HUNG KA HAI CLEMENT

1st Defendant

CHEUNG KWONG TAT TERENCE

2nd Defendant

HUNG TING ON JOHN

3rd Defendant

KAY MAN WO DICK

4th Defendant

LIU MING HUA DORA

5th Defendant

MENG XIAO FAN DENKEN

6th Defendant

NG KA YUEN KEVIN

7th Defendant

TANG YING CHEUNG ERIC

8th Defendant

TONG YAM KWONG DANNY

9th Defendant

TSAI WING CHUNG PHILIP

10th Defendant

YANG YING ROSA

11th Defendant

ZHANG BOA YUN PAULINE

12th Defendant

FRANK FRIEDMAN

13th Defendant

MAH CHEE KHEONG CHALY

14th Defendant

YOICHIRO OGAWA

15th Defendant

CHIA KEE LOONG LAWRENCE

16th Defendant

Procedural Posture

Commercial/shareholder Dispute Involving Arbitration Clause / Application to Stay Proceedings to Arbitration; Judgment Granting Stay

Legal Issues

  1. 1 Whether the dispute falls within the arbitration clause in clause 8.12 of the Agreement
  2. 2 Whether the dispute resolution procedure under clause 8.12 had been exhausted such that the arbitration clause is incapable of performance
  3. 3 Whether the Court has discretion to refuse a stay under s20(1) of the Arbitration Ordinance

Ratio Decidendi

The Court granted the stay because the Plaintiffs' pleaded claims indisputably fall within the broad arbitration clause in clause 8.12; the Plaintiffs' contention that the clause had been exhausted is unfounded and there remain unresolved disputes for arbitration; accordingly the arbitration agreement is capable of performance and the Court must stay the proceedings under the Arbitration Ordinance. Costs awarded to defendants on an indemnity basis.

Court Disposition

Stay granted; costs awarded to defendants on indemnity basis.

Orders

  • Proceedings stayed to arbitration in accordance with clause 8.12 of the Shareholders Agreement and the Arbitration Ordinance (Cap 609).
  • Plaintiffs to pay the defendants' costs of the stay application on an indemnity basis.