BRUNSWICK BOWLING & BILLIARDS CORPORATION v. SHANGHAI ZHONGLU INDUSTRIAL CO LTD AND ANOTHER

BRUNSWICK BOWLING & BILLIARDS CORPORATION v. SHANGHAI ZHONGLU INDUSTRIAL CO LTD AND ANOTHER

The court upheld that the Tribunal breached Article 34(2)(a)(ii) by applying PRC law to certain conversion claims without giving parties opportunity to present evidence or submissions on that law and those parts of the award must be set aside; however, for the Orders in System claim the Tribunal’s failure on PRC signing requirements did not materially affect the result because alternative fully‑reasonsupported findings justified the award, so the remainder of the application is dismissed. Allocation of hearing time, language choice, jurisdictional declinature of certain counterclaims, double actionability and impartiality challenges failed for reasons of tribunal discretion, waiver or...

Citation
BRUNSWICK BOWLING & BILLIARDS CORPORATION v. SHANGHAI ZHONGLU INDUSTRIAL CO LTD AND ANOTHER
Parties
Claimant: Brunswick Bowling & Billiards Corporation; 1st Respondent: Shanghai Zhonglu Industrial Co. Ltd.; 2nd Respondent: Chen Rong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 February 2009
Case Number
HCCT66/2007
Procedural Posture
Construction and Arbitration Proceedings / Application to Set Aside Arbitral Award — Judgment
Outcome
Respondents' application to set aside the arbitral award dismissed except that the awards on conversion claims (conversion of 2,000 branded bowling balls and unauthorized sale of houseballs/unjust enrichment) are set aside
Legal Topics
Setting Aside Arbitral Award, UNCITRAL Model Law Article 34, Choice of Law, Procedural Fairness, Jurisdiction, Conversion, Damages Quantification, Double Actionability, Arbitral Procedure and Language, Impartiality
Source Language
EN
Arbitration International Commercial Arbitration Contract Law Conflict of Laws Civil Procedure Setting Aside Arbitral Award UNCITRAL Model Law Article 34 Choice of Law +7 more

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Parties

Brunswick Bowling & Billiards Corporation

Claimant

Shanghai Zhonglu Industrial Co. Ltd.

1st Respondent

Chen Rong

2nd Respondent

Procedural Posture

Construction and Arbitration Proceedings / Application to Set Aside Arbitral Award — Judgment

Legal Issues

  1. 1 Whether tribunal acted on undisclosed view of foreign law depriving party of opportunity to present case (Article 34(2)(a)(ii))
  2. 2 Whether award deals with dispute beyond submission or outside tribunal jurisdiction (Article 34(2)(a)(iii))
  3. 3 Whether arbitral procedure departed from parties' agreement (Article 34(2)(a)(iv))

Ratio Decidendi

The court upheld that the Tribunal breached Article 34(2)(a)(ii) by applying PRC law to certain conversion claims without giving parties opportunity to present evidence or submissions on that law and those parts of the award must be set aside; however, for the Orders in System claim the Tribunal’s failure on PRC signing requirements did not materially affect the result because alternative fully‑reasonsupported findings justified the award, so the remainder of the application is dismissed. Allocation of hearing time, language choice, jurisdictional declinature of certain counterclaims, double actionability and impartiality challenges failed for reasons of tribunal discretion, waiver or...

Court Disposition

Respondents' application to set aside the arbitral award dismissed except that the awards on conversion claims (conversion of 2,000 branded bowling balls and unauthorized sale of houseballs/unjust enrichment) are set aside

Orders

  • Application to set aside dismissed except as to conversion claims which are set aside
  • Costs order nisi: Respondents to pay costs of the Claimant, such costs to be taxed if not agreed