Fully Virtual Hearing Not A Ground To Refuse Enforcement, Hong Kong Court Rules

The Hong Kong Court of First Instance has ruled that the holding of a fully virtual hearing despite the opposition of one of the parties did not provide a permissible ground to resist enforcement of an award (Sky Power Construction Engineering Limited v Iraero Airlines JSC [2023] HKCFI 1558).

Although the case was decided on its specific facts, the court emphasised the deference which should be shown to the arbitrator's wide discretion to determine the procedure in the absence of party agreement. The decision also suggested an acceptance in principle of the use of virtual hearings in a post-pandemic world, where appropriate in the circumstances of a particular case. It therefore provides a helpful indication of the way in which the Hong Kong courts might approach challenges to awards based on virtual hearings in future cases.