Most Read Contributor in Hong Kong, September 2016
Originally published 16 November 2010
Keywords: Hong Kong Arbitration Bill, new
ordinance, UML, arbitration agreement
On 12 November 2010 the Hong Kong Arbitration Bill passed its
remaining stages and has become law. However it will only be
brought into effect by a notice by the Secretary for Justice in the
Government Gazette (most likely within the next six months).
The new Ordinance replaces the current Ordinance. It is intended
to simplify arbitration law in Hong Kong and make it more user
friendly by following the Uncitral Model Law (UML) layout from
"Arbitration Agreement" through to "Recognition and
Enforcement of Awards".
Features of interest are:
There are no longer separate provisions governing domestic and
The UML provisions previously applicable to international
arbitrations (including most of the 2006 amendments to UML) now
apply to all arbitrations together with most of the other
provisions which previously applied to all arbitrations. The
enforcement arrangements for New York Convention and China Mainland
awards remain in place.
Articles 17 - 17G of UML (introduced by the 2006 amendments)
allow the Tribunal to order interim measures (this includes Mareva
and other injunctions and Anton Pillar orders) and to grant
preliminary orders ex parte for a limited period in an emergency.
Interim measures can be effective as they are enforceable by the
The Tribunal will normally assess recoverable costs unless the
parties specifically agree to Court taxation.
Parties will be able to opt in to one or more of the following
Schedule 2 provisions in their arbitration agreement (see Section
Consolidation of arbitrations
Decision of preliminary question of law by the Court
Challenging the arbitral award on the ground of serious
Appeal against an arbitral award on question of law
These Schedule 2 provisions will also automatically apply if
the arbitration agreement states it is a domestic agreement.
However this only applies to existing arbitration agreements or
those entered into within six years of the commencement of the new
Ordinance (see Section 100).
If the Schedule 2 provisions automatically apply to a
construction contract those provisions will be deemed to apply to
any related construction subcontract with an arbitration agreement
down the line of subcontracts so long as there is no foreign
element involved in the subcontract (see Sections 101 and 102 for
details). "Construction Contract" is as defined by
Section 2(1) of the Construction Industry Council Ordinance
Copyright 2010. JSM, Mayer Brown International LLP
and/or Mayer Brown LLP. All rights reserved. Mayer Brown is a
global legal services organization comprising legal practices that
are separate entities ("Mayer Brown Practices"). The
Mayer Brown Practices are: JSM, a Hong Kong partnership, and its
associated entities in Asia; Mayer Brown International LLP, a
limited liability partnership incorporated in England and Wales;
and Mayer Brown LLP, a limited liability partnership established in
the United States. The Mayer Brown Practices are known as Mayer
Brown JSM in Asia.
This article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein. Please also read the JSM legal publications Disclaimer.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The claim followed the conclusion of two years of litigation (ORD 12/0035 & ORD 12/0034) between the parties in respect of the Bank's contractual claim for amounts owed by TSEL to the Bank pursuant to certain business loans.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).