CHUN WO BUILDING CONSTRUCTION LTD. v. CHINA MERCHANTS TOWER CO. LTD.

CHUN WO BUILDING CONSTRUCTION LTD. v. CHINA MERCHANTS TOWER CO. LTD.

The court exercised its discretion under s.6B Cap.341, holding that sufficient commonality existed (common contractual terms, interlocking indemnity/set-off claims, common issues of delay/liquidated damages, and a single architect's evidence) and that the application was not premature; accordingly the three arbitrations should be heard together to avoid inefficiency and inconsistent findings, with costs nisi against the 1st and 2nd respondents.

Citation
CHUN WO BUILDING CONSTRUCTION LTD. v. CHINA MERCHANTS TOWER CO. LTD.
Parties
Applicant: Chun Wo Building Construction Ltd; 1st Respondent: China Merchants Tower Co. Ltd; 2nd Respondent: Chevalier (HK) Ltd; 3rd Respondent: Cerberus Hong Kong Ltd
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 January 2000
Case Number
HCCT107/1999
Procedural Posture
Construction and Arbitration Proceedings / Chambers Application for Order Under S.6 B of the Arbitration Ordinance (concurrent Hearings/consolidation)
Outcome
Order made that the three arbitrations be heard together (concurrent hearings) pursuant to s.6B of the Arbitration Ordinance Cap.341; order nisi as to costs against the 1st and 2nd respondents.
Legal Topics
Consolidation of Arbitrations, S.6 B Arbitration Ordinance, Indemnity Claims, Delay and Liquidated Damages, Set Off, Architect's Certificates, Joinder/concurrent Hearings
Source Language
EN
Arbitration Construction Law Contract Law Civil Procedure Consolidation of Arbitrations S.6 B Arbitration Ordinance Indemnity Claims Delay and Liquidated Damages +3 more

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Parties

Chun Wo Building Construction Ltd

Applicant

China Merchants Tower Co. Ltd

1st Respondent

Chevalier (HK) Ltd

2nd Respondent

Cerberus Hong Kong Ltd

3rd Respondent

Procedural Posture

Construction and Arbitration Proceedings / Chambers Application for Order Under S.6 B of the Arbitration Ordinance (concurrent Hearings/consolidation)

Legal Issues

  1. 1 Whether there is sufficient commonality of issues to order the arbitrations to be heard together under s.6B
  2. 2 Whether the application is premature
  3. 3 Whether the disputes arise out of the same transaction or series of transactions

Ratio Decidendi

The court exercised its discretion under s.6B Cap.341, holding that sufficient commonality existed (common contractual terms, interlocking indemnity/set-off claims, common issues of delay/liquidated damages, and a single architect's evidence) and that the application was not premature; accordingly the three arbitrations should be heard together to avoid inefficiency and inconsistent findings, with costs nisi against the 1st and 2nd respondents.

Court Disposition

Order made that the three arbitrations be heard together (concurrent hearings) pursuant to s.6B of the Arbitration Ordinance Cap.341; order nisi as to costs against the 1st and 2nd respondents.

Orders

  • The three arbitrations shall be heard together pursuant to s.6B of the Arbitration Ordinance Cap.341 on terms to be regulated.
  • Order nisi that the costs of the application be paid by the 1st and 2nd respondents.