Case number: 60
Article number: model arbitration law / 11
Thessaurs issue:
Country of decision: United Kingdom
Year of decision: 1993
Type of decision: Judicial decision

Case 60
Hong Kong: High Court of Hong Kong (Kaplan J.) 6 October 1993
Safond Shipping Sdn. Bhd. v. East Asia Sawmill Corp.
Original in English
Unpublished

(Abstract prepared by the Secretariat)

The plaintiff had a claim for demurrage against the defendant on the basis of a charterparty containing an arbitration clause
which provided for arbitration in Hong Kong under English law and that each party would nominate one arbitrator. The plaintiff
informed the defendant about the appointment of an arbitrator and invited the defendant to appoint its arbitrator. The defendant
did not respond. The plaintiff then sought the appointment of an arbitrator by the court on behalf of the defendant pursuant to
article 11 MAL. The court granted the plaintiff leave to serve out of the jurisdiction of the court and process was served, but
the defendant again did not respond.

The court found that the defendant's conduct, which reflected what was becoming a standard pattern in claims before Hong
Kong courts arising usually out of charterparties or contracts for the international sale of goods, involved cost and delay and as
such was contrary to the spirit of arbitration which seeks to resolve a dispute quickly and economically. It was held that such
conduct constituted a flagrant breach of the contractual obligation to arbitrate and an unacceptable defiance of the court
proceedings, which caused delay and expense. The court appointed an arbitrator and ordered the defendant to pay the
plaintiff's costs.