International arbitration in Hong Kong continues to be governed by the Arbitration Ordinance (Cap. 609) (“Ordinance”), to which no significant legislative amendment was made in 2014.
A.2 Trends and Tendencies
In the past 12 months, courts in Hong Kong have continued to show support for arbitration, particularly the enforcement of arbitration awards. Recent decisions confirm that the bar for successfully challenging or preventing the enforcement of an award in Hong Kong is high.
B.1 Court of First Instance Upholds Enforcement of Foreign Arbitral Awards
X Chartering v Y3
In this case, the Court of First Instance (“CFI”) refused an application to set aside an order enforcing a foreign arbitral award made under section 86 of the Ordinance.
X Chartering and Y entered into a contract of affreightment (“Contract”) on September 9, 2008. Under the contract, Y was obliged to make 15 shipments of coal from Indonesia to China during a period of two years commencing January 1, 2009. No shipments were ever made. X Chartering obtained a London arbitration award against Y for repudiation (the “Award”). Y unsuccessfully sought to appeal the Award in England on the ground that the tribunal had erred in its calculation of damages.