In a decision made on 15 March 2024, the Dutch Supreme Court denied the reinstatement of a US$116 million Netherlands Arbitration Institute award to Dutch developer Geosolutions against Sina Hong Kong, an affiliate of Chinese social media platform Weibo. This decision was reached three months earlier than expected, following the determination that no valid arbitration agreement was in place.
About the case
The conflict centred on an arbitration award of US$116 million plus interest in favour of Geosolutions. This award, however, was challenged in the Dutch courts, with the Amsterdam Court of Appeal annulling the award against Sina HK in 2021.
This decision was later contested by Geosolutions at the Dutch Supreme Court, emphasising the appellate court's alleged misinterpretation and disregard for the arbitration tribunal's jurisdictional assessment.
In January, Supreme Court Advocate General Wissink recommended that the 2022 ruling by the Amsterdam Court of Appeal setting aside the award be upheld. His opinion underscored the necessity of independent court assessment on the validity of arbitration agreements.
This case spread beyond the Netherlands, with enforcement actions pursued in Hong Kong and the British Virgin Islands, alongside related litigation in the United States, alluding to the global ramifications of the dispute. Each jurisdiction offered a unique lens through which the case was examined, from adjourned enforcement actions in Hong Kong to stayed proceedings in the BVI, and dismissal of related fraud complaints in the US due to jurisdictional and substantial issues.
This case underscores the complexities and challenges of navigating international legal disputes, especially in intellectual property and technology transfer. It also highlights the strategic considerations companies must weigh in enforcing arbitration awards across borders and the intricacies between arbitration and court proceedings in different legal systems.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
