HFW Briefing – Anti-suit injunctions and arbitration agreements: the position under Hong Kong law

Anti-suit injunctions and arbitration agreements: the position under Hong Kong law

In the landmark decision of Mr Justice Godfrey Lam in Ever Judger Holding Co Ltd v Kroman Celik Sanayii Anonim Sirketi, the Hong Kong High Court sets out the principles that apply to anti-suit injunctions in the context of arbitration agreements.

The plaintiffs, Ever Judger Holding Company Limited (represented by Holman Fenwick Willan) were the owners of the Panamax bulk carrier EVER JUDGER. The defendants were the receivers of a cargo of steel wire rods, which was loaded at Zhangjiagang for carriage to Kroman. The cargo was shipped under bills of lading that incorporated an arbitration clause providing for English law and arbitration in Hong Kong. When the ship arrived in Turkey, a dispute arose in relation to the condition of the cargo.

The buyers arrested the vessel in Turkey and security was provided by the owners. Subsequently, and in breach of the arbitration clause, the buyers commenced a substantive action against the owners before the Turkish Courts and filed points of claim. The buyers alleged in the Turkish proceedings that the cargo had been damaged as a result of ‘irregularities’ during loading, carriage and/or stowage of the cargo while the responsibility of the carrier.
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