SUZHOU QUAM-SND VENTURE CAPITAL ENTERPRISE AND ANOTHER v. GREAT EAST PACKAGING INTERNATIONAL LTD AND OTHERS

SUZHOU QUAM-SND VENTURE CAPITAL ENTERPRISE AND ANOTHER v. GREAT EAST PACKAGING INTERNATIONAL LTD AND OTHERS

The acknowledgement of debt signed by the defendants was a clear and unequivocal admission of both liability and quantum; therefore there was in reality no dispute capable of being referred to arbitration under the arbitration clause, and the application for a stay pending arbitration was refused; the plaintiffs were granted leave to amend their statement of claim to plead the underlying obligation under the AAI and the defendant given time to file a defence.

Citation
SUZHOU QUAM-SND VENTURE CAPITAL ENTERPRISE AND ANOTHER v. GREAT EAST PACKAGING INTERNATIONAL LTD AND OTHERS
Parties
1st Plaintiff: Suzhou Quam-SND Venture Capital Enterprise; 2nd Plaintiff: China Door Limited; 1st Defendant: Great East Packaging International Limited; 2nd Defendant: A-Tsan Guy Chung; 3rd Defendant: Stetson Chung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 July 2013
Case Number
HCA98/2013
Procedural Posture
Civil Contractual Debt / Enforcement / Interlocutory Application / Application for Stay of Proceedings Pending Arbitration and Interlocutory Directions on Pleadings (decision on Stay and Amendment)
Outcome
Application for stay pending arbitration refused as there was no real dispute; plaintiffs permitted to amend statement of claim; defendant granted time to file defence; order nisi as to costs (no order as to costs).
Legal Topics
Stay of Proceedings, Acknowledgement of Debt, Arbitration Clause Interpretation, Cause of Action, Undue Influence, Set Off
Source Language
EN
Arbitration Law Contract Law Civil Procedure Limitation Law Company Law Stay of Proceedings Acknowledgement of Debt Arbitration Clause Interpretation +3 more

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Parties

Suzhou Quam-SND Venture Capital Enterprise

1st Plaintiff

China Door Limited

2nd Plaintiff

Great East Packaging International Limited

1st Defendant

A-Tsan Guy Chung

2nd Defendant

Stetson Chung

3rd Defendant

Procedural Posture

Civil Contractual Debt / Enforcement / Interlocutory Application / Application for Stay of Proceedings Pending Arbitration and Interlocutory Directions on Pleadings (decision on Stay and Amendment)

Legal Issues

  1. 1 Whether clause 3.17 is an arbitration agreement enforceable by stay
  2. 2 Whether the arbitration agreement is null, inoperative or incapable of performance
  3. 3 Whether there is in reality a dispute between the parties such that arbitration can be required

Ratio Decidendi

The acknowledgement of debt signed by the defendants was a clear and unequivocal admission of both liability and quantum; therefore there was in reality no dispute capable of being referred to arbitration under the arbitration clause, and the application for a stay pending arbitration was refused; the plaintiffs were granted leave to amend their statement of claim to plead the underlying obligation under the AAI and the defendant given time to file a defence.

Court Disposition

Application for stay pending arbitration refused as there was no real dispute; plaintiffs permitted to amend statement of claim; defendant granted time to file defence; order nisi as to costs (no order as to costs).

Orders

  • Stay of proceedings pending arbitration refused.
  • Plaintiffs to file an amended statement of claim within 7 days from date of decision.