Litigate Or Arbitrate: The Continuing Debate

Insolvency proceedings become more complex when an arbitration clause is in place, but a recent case in the British Virgin Islands brings some clarity.

Carey Olsen's Singapore team has considered the first reported British Virgin Islands (BVI) case on the court's jurisdiction to determine a just and equitable winding-up application when faced with an arbitration agreement between parties.

The authors also examine the trend in the Cayman Islands and in Hong Kong on this issue. In the authors' opinion, the BVI judgment provides welcome guidance for prospective litigants who are confronted with the choice between presenting a petition in the court or referring the dispute to arbitration.