ASIA CONSTRUCTION COMPANY v. CROWN PACIFIC LIMITED

ASIA CONSTRUCTION COMPANY v. CROWN PACIFIC LIMITED

Applying the objective test in The Elissar, the arbitrator committed a serious breach of natural justice by deciding the merits when only asked to rule on a preliminary issue, and his continued denial of any basic error meant a reasonable party would lack confidence; accordingly the interim award was set aside and...

Source-derived case information.

Citation
ASIA CONSTRUCTION COMPANY v. CROWN PACIFIC LIMITED
Parties
Applicant/claimant: Asia Construction Company; Respondent: Crown Pacific Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 December 1988
Case Number
HCMP2404/1988
Procedural Posture
Application to Set Aside Interim Arbitration Award and Remove Arbitrator / Hearing on Originating Notice of Motion in High Court (application Stage)
Outcome
Interim award set aside; arbitrator removed
Legal Topics
Setting Aside Interim Award, Removal of Arbitrator, Breach of Natural Justice, Remission Vs Removal, Standard of Review
Source Language
en
Arbitration Civil Procedure Administrative Law Natural Justice Setting Aside Interim Award Removal of Arbitrator Breach of Natural Justice Remission Vs Removal +1 more

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Summary, issues, holding and outcome

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Parties

Asia Construction Company

Applicant/claimant

Crown Pacific Limited

Respondent

Procedural Posture

Application to Set Aside Interim Arbitration Award and Remove Arbitrator / Hearing on Originating Notice of Motion in High Court (application Stage)

Legal Issues

  1. 1 Whether the arbitrator breached basic rules of natural justice by deciding the merits instead of whether to hear a preliminary issue
  2. 2 Whether a party's loss of confidence in the arbitrator justifies removal
  3. 3 Whether remission (re-opening) of the award is an adequate alternative to removal

Ratio Decidendi

Applying the objective test in The Elissar, the arbitrator committed a serious breach of natural justice by deciding the merits when only asked to rule on a preliminary issue, and his continued denial of any basic error meant a reasonable party would lack confidence; accordingly the interim award was set aside and the arbitrator removed, remission being insufficient in the circumstances.

Court Disposition

Interim award set aside; arbitrator removed

Orders

  • Interim award set aside
  • Arbitrator removed