CPC CONSTRUCTION HONG KONG LTD v. HARVEST ENGINEERING (HK) LTD AND ANTOHER

CPC CONSTRUCTION HONG KONG LTD v. HARVEST ENGINEERING (HK) LTD AND ANTOHER

Counterclaim arising out of the subcontract is stayed to arbitration; the claim for repayment is not stayed because loan and guarantee documents contain express non-exclusive Hong Kong court jurisdiction clauses indicating an intention that disputes under those documents be litigated; summary judgment is refused because respondents established a credible collateral oral agreement and other factual issues (use of designated account, direct payments to subcontractors, set-off entitlements) that are capable of belief and require trial; unconditional leave to defend is granted to Harvest and Mr Lau.

Citation
CPC CONSTRUCTION HONG KONG LTD v. HARVEST ENGINEERING (HK) LTD AND ANTOHER
Parties
Plaintiff: CPC Construction Hong Kong Limited; 1st Defendant: Harvest Engineering (HK) Limited; 2nd Defendant: Lau Yuk Yam
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 July 2015
Case Number
HCA2096/2013
Procedural Posture
Civil (contract and Suretyship) / Applications for Summary Judgment and Stays in Favour of Arbitration (pre Trial)
Outcome
Counterclaim stayed in favour of arbitration; claim not stayed; summary judgment refused; defendants granted unconditional leave to defend; costs reserved/no order at present.
Legal Topics
Summary Judgment, Stay of Proceedings, Arbitration Clause Scope, Collateral Oral Agreement, Guarantee, Set Off
Source Language
EN
Arbitration Contract Civil Procedure Construction Law Summary Judgment Stay of Proceedings Arbitration Clause Scope Collateral Oral Agreement +2 more

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Parties

CPC Construction Hong Kong Limited

Plaintiff

Harvest Engineering (HK) Limited

1st Defendant

Lau Yuk Yam

2nd Defendant

Procedural Posture

Civil (contract and Suretyship) / Applications for Summary Judgment and Stays in Favour of Arbitration (pre Trial)

Legal Issues

  1. 1 Whether the counterclaim should be stayed in favour of arbitration
  2. 2 Whether the claim for repayment of loans and guarantor liability falls within the subcontract arbitration clause
  3. 3 Whether the loan agreement and guarantee are independent agreements subject to court jurisdiction clauses

Ratio Decidendi

Counterclaim arising out of the subcontract is stayed to arbitration; the claim for repayment is not stayed because loan and guarantee documents contain express non-exclusive Hong Kong court jurisdiction clauses indicating an intention that disputes under those documents be litigated; summary judgment is refused because respondents established a credible collateral oral agreement and other factual issues (use of designated account, direct payments to subcontractors, set-off entitlements) that are capable of belief and require trial; unconditional leave to defend is granted to Harvest and Mr Lau.

Court Disposition

Counterclaim stayed in favour of arbitration; claim not stayed; summary judgment refused; defendants granted unconditional leave to defend; costs reserved/no order at present.

Orders

  • Counterclaim stayed in favour of arbitration.
  • Application to stay the claim in favour of arbitration dismissed.