LEGEND INTERIORS LTD v. WING MOU ENGINEERING LTD AND ANOTHER

LEGEND INTERIORS LTD v. WING MOU ENGINEERING LTD AND ANOTHER

The court held GC‑35 was incorporated into the Sub‑Contract by express incorporation of the Conditions of Tender (Clause 20(d)) which themselves incorporated the General Conditions including GC‑35; AO s.2AC(3)(b) supports reading a reference to a document as importing an arbitration clause even where incorporation is via an intermediate document; accordingly the action against Wing Mou is stayed to arbitration and the Employment Ordinance reimbursement claim falls within the arbitration agreement, but proceedings against Siu are not stayed because he is not party to the arbitration agreement and there is no basis to grant a stay against a non‑party guarantor.

Citation
LEGEND INTERIORS LTD v. WING MOU ENGINEERING LTD AND ANOTHER
Parties
Plaintiff: Legend Interiors Limited; 1st Defendant: Wing Mou Engineering Limited; 2nd Defendant: Siu Kar Shui
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 March 2004
Case Number
HCCT15/2004
Procedural Posture
Construction and Arbitration (contract) / Judgment on Stay Application to Arbitration
Outcome
Proceedings against 1st Defendant (Wing Mou) stayed to arbitration pursuant to GC‑35; proceedings against 2nd Defendant (Siu) not stayed.
Legal Topics
Incorporation by Reference, Stay to Arbitration, Arbitration Clause Interpretation, Third‑party Liability/guarantee, Interpretation of Statutory Language
Source Language
EN

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Parties

Legend Interiors Limited

Plaintiff

Wing Mou Engineering Limited

1st Defendant

Siu Kar Shui

2nd Defendant

Procedural Posture

Construction and Arbitration (contract) / Judgment on Stay Application to Arbitration

  1. 1 Whether GC‑35 arbitration clause in the Main Contract was incorporated into the Sub‑Contract by reference
  2. 2 Whether Arbitration Ordinance s.2AC(3)(b) applies where reference to arbitration clause is via an intermediate document
  3. 3 Whether Legend's claim for reimbursement under the Employment Ordinance falls within the arbitration agreement

Ratio Decidendi

The court held GC‑35 was incorporated into the Sub‑Contract by express incorporation of the Conditions of Tender (Clause 20(d)) which themselves incorporated the General Conditions including GC‑35; AO s.2AC(3)(b) supports reading a reference to a document as importing an arbitration clause even where incorporation is via an intermediate document; accordingly the action against Wing Mou is stayed to arbitration and the Employment Ordinance reimbursement claim falls within the arbitration agreement, but proceedings against Siu are not stayed because he is not party to the arbitration agreement and there is no basis to grant a stay against a non‑party guarantor.

Court Disposition

Proceedings against 1st Defendant (Wing Mou) stayed to arbitration pursuant to GC‑35; proceedings against 2nd Defendant (Siu) not stayed.

Orders

  • Stay Legend's proceedings against Wing Mou (1st Defendant) and refer dispute to arbitration pursuant to GC‑35
  • Proceedings against Siu Kar Shui (2nd Defendant) are not stayed