Case number: 41
Article number: model arbitration law / 8(1)
Thessaurs issue:
Country of decision: United Kingdom
Year of decision: 1992
Type of decision: Arbitral award

Case 41: MAL 8(1)
Hong Kong: High Court of Hong Kong (Barnett J.) 24 September 1992
Guangdong Agriculture Company Limited v. Conagra International (Far East) Limited
Published in English: (1993) 1, Hong Kong Law Reports and 1992, Hong Kong Law Digest, H11. Excerpts of judgement
published in The Arbitration and Dispute Resolution Law Journal, Part 2, June 1993, 100

(Abstract prepared by Kaplan J.)

The plaintiff sought a summary judgement for damages for short delivery of a shipment of urea. The defendant applied for a
stay of the action pending arbitration on the grounds that the agreement with the plaintiff contained an arbitration clause
providing that "... In case no settlement can be reached, the case under dispute can then be submitted to the chartered loss
adjuster for arbitration ... The arbitration shall take place in Hong Kong and shall take place in accordance with the rules of
Hong Kong ...".

The court found that there was a binding arbitration agreement, since all article 8 MAL required was that the parties plainly
agreed to settle any dispute by arbitration.

The court also found that this case involved a real dispute that could be referred to arbitration as required by s. 6A(1) of the
Arbitration Ordinance, but not by article 8 MAL. The words " ... or that there is not in fact any dispute between the parties
with regard to the matter agreed to be referred ...", omitted from article 8(1) MAL but contained in section 6A(1) of the
Arbitration Ordinance, made it clear that under the Arbitration Ordinance only where it was readily and immediately
demonstrable that a claim has not been admitted by the party against whom it is made, the matter should be referred to
arbitration. The court granted a stay of proceedings.