11Nov2009
A v R: Enforcement at any Cost(s)?
- By Aloke Ray, White & Case LLP,
for White & Case
Earlier this year, the Hong Kong Court of First Instance ruled that, in future, when it hears unsuccessful attempts to resist enforcement of arbitral awards under the New York Convention, it will “normally consider” awarding costs on an indemnity basis (i.e., in full, regardless whether they were reasonably incurred). This was a bold pro-enforcement statement by the Court, explicitly designed to remove any incentive for losing parties to “have a go” at avoiding enforcement. This posting considers whether the ruling goes too far in discouraging challenges to enforcement.
In A v R, the applicant obtained an award for US$3 million plus interest and costs in arbitral proceed [...]
