TOMMY C.P. SZE & CO. v. LI & FUNG (TRADING) LTD. AND OTHERS

TOMMY C.P. SZE & CO. v. LI & FUNG (TRADING) LTD. AND OTHERS

Clause 25(b) is a valid arbitration agreement requiring disputes arising out of or connected with the Placement Memoranda to be referred to arbitration; a contractual time bar does not render the arbitration agreement inoperative because the tribunal can rule on time limits or extend time under s.2GD; there is a...

Source-derived case information.

Citation
TOMMY C.P. SZE & CO. v. LI & FUNG (TRADING) LTD. AND OTHERS
Parties
Liquidator Plaintiff of Figure Development Limited (in Creditors Voluntary Liquidation): Tommy C.P. Sze & Company; 1st Defendant: Li & Fung (Trading) Limited; 2nd Defendant: Avon Products Inc.; 3rd Defendant: Avon Products Pty. Ltd; 4th Defendant: Avon Cosmetics Ltd; 5th Defendant: Avon Costmetics (Malaysia) Sdn Bhd; 6th Defendant: Avon Canada Inc.; 7th Defendant: Avon Cosmetics GMBH
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 October 2002
Case Number
HCCT29/2002
Procedural Posture
Construction and Arbitration Proceedings (claim for Unpaid Purchase Price and Related Causes of Action) / Application for Stay Under Arbitration Ordinance; Judgment on Stay Application (chambers)
Outcome
Action stayed and Plaintiff's claims referred to arbitration
Legal Topics
Stay of Proceedings, Arbitration Agreement Construction, Jurisdiction, Time Bar and Extension of Time, Costs Order
Source Language
en
Arbitration Law Contract Law Civil Procedure Stay of Proceedings Arbitration Agreement Construction Jurisdiction Time Bar and Extension of Time Costs Order

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Parties

Tommy C.P. Sze & Company

Liquidator Plaintiff of Figure Development Limited (in Creditors Voluntary Liquidation)

Li & Fung (Trading) Limited

1st Defendant

Avon Products Inc.

2nd Defendant

Avon Products Pty. Ltd

3rd Defendant

Avon Cosmetics Ltd

4th Defendant

Avon Costmetics (Malaysia) Sdn Bhd

5th Defendant

Avon Canada Inc.

6th Defendant

Avon Cosmetics GMBH

7th Defendant

Procedural Posture

Construction and Arbitration Proceedings (claim for Unpaid Purchase Price and Related Causes of Action) / Application for Stay Under Arbitration Ordinance; Judgment on Stay Application (chambers)

Legal Issues

  1. 1 Whether clause 25(b) is an arbitration agreement binding the parties to arbitrate
  2. 2 Whether the arbitration agreement is null, void, inoperative or incapable of being performed by reason of contractual time bar
  3. 3 Whether there is a real dispute between the parties

Ratio Decidendi

Clause 25(b) is a valid arbitration agreement requiring disputes arising out of or connected with the Placement Memoranda to be referred to arbitration; a contractual time bar does not render the arbitration agreement inoperative because the tribunal can rule on time limits or extend time under s.2GD; there is a real dispute and the Plaintiff's claims fall within the clause; therefore the court must stay proceedings and refer the claims to arbitration.

Court Disposition

Action stayed and Plaintiff's claims referred to arbitration

Orders

  • Proceedings stayed and claims referred to arbitration pursuant to clause 25(b)
  • Order nisi that Plaintiff pay the 1st Defendant's costs of and occasioned by the stay application, to be taxed if not agreed