Comparative Guides
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Results: 4 Answers
International Arbitration
7.
Consolidation and third parties
7.1
Does the law in your jurisdiction permit consolidation of separate arbitrations into a single arbitration proceeding? Are there any conditions which apply to consolidation?
 
Hong Kong
The main body of the Arbitration Ordinance (AO) has no provisions dealing with consolidation of separate arbitrations.

Before the AO came into effect, Hong Kong used to have rules for two distinct regimes – one for international arbitration and one for domestic arbitration. Since the current AO came into effect, parties may choose between application of provisions in the main body of the AO or application of Schedule 2 provisions. The provisions in the main body of the AO do not distinguish between international and domestic arbitration, whereas Schedule 2 of the AO allows parties to opt in certain provisions from the former domestic arbitration regime, such as provisions on consolidation of arbitrations.

Under Schedule 2, the court may order arbitral proceedings to be consolidated where it appears to the court that:

  • a common question of law or fact arises in both or all of them;
  • the rights to relief claimed in those arbitral proceedings are in respect of or arise out of the same transaction or series of transactions; or
  • for any other reason, it is desirable to make an order under this section.
For more information about this answer please contact: Nick Gall from Gall
7.2
Does the law in your jurisdiction permit the joinder of additional parties to an arbitration which has already commenced?
 
Hong Kong
The AO does not have provisions dealing with or prohibiting joinder of additional parties to an arbitration. On the other hand, care should be taken in ascertaining whether joinder of parties is allowed under the applicable arbitration rules. For instance, joinder of parties is allowed under Article 27 of the Hong Kong International Arbitration Centre Administered Arbitration Rules 2013.

For more information about this answer please contact: Nick Gall from Gall
7.3
Does an arbitration agreement bind assignees or other third parties?
 
Hong Kong
The starting point is that a party which has not signed an arbitration agreement or otherwise agreed to become a party to the arbitration proceedings cannot be bound by an arbitration agreement or award.

However, a third party to an arbitration agreement may enjoy a right to enforce a contract term through arbitration under Section 12 of the Contracts (Rights of Third Parties) Ordinance (Cap 623) if:

  • the contract term is enforceable by the third party;
  • the term provides that one or more descriptions of dispute between the third party and the promisor is to be submitted to arbitration; and
  • the term constitutes an arbitration agreement.
For more information about this answer please contact: Nick Gall from Gall
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