Back Whence It Came: Hong Kong Court Remits Award For Serious Irregularity

A tribunal had decided liability and awarded sums as due on a basis not advanced by the claimant. In P v M [2018] HKCFI 2280, The Hong Kong Court of First Instance decided that this approach breached the “fundamental rule of natural justice that each party should be given the fair and reasonable opportunity to present its case and to deal with the case of its opponent.” The relevant parts of the Award were declared a nullity, and it was remitted to the tribunal to hear submissions on the issues that it had decided were determinative.

Background

P engaged M to carry out works under a construction contract (Contract) containing certain clauses requiring notice for loss and expense claims. Disputes arose and M commenced domestic arbitration proceedings against P under the Contract’s arbitration agreement. M asserted throughout the arbitration that: