When parties agree on a dispute resolution mechanism, the expectation is that any subsequent disagreement will follow that agreed path. Yet disputes sometimes escalate in ways that diverge from the contract. For example, arbitration may be commenced in the wrong seat, mediation may be bypassed, or a second arbitration may be initiated after an award has already been issued. In these situations, the non-breaching party may seek an anti-arbitration injunction from the Hong Kong courts to restrain the arbitral proceedings. This new Lexis+ Practical Guidance Hong Kong Practice Note on anti-arbitration injunctions provides a timely and practical overview of the legal framework and recent judicial treatment of this delicate remedy.
A central issue is the extent of the court’s jurisdiction. Section 21L of the High Court Ordinance, permits the Court of First Instance to grant injunctions where “just or convenient to do so.” However, sections 12 and 20 of the Arbitration Ordinance directs that courts should not intervene in matters governed by arbitration except where expressly provided. As highlighted in Lin Ming v Chen Shu Quan, the judiciary has recognised a tension between the two statutes but have affirmed that the courts retain jurisdiction to restrain arbitral proceedings, albeit to be exercised sparingly and with exceptional caution.
The courts have articulated several key considerations when determining whether to grant an anti-arbitration injunction:
Key issues addressed in this Practice Note include:
• Whether the continuation of the arbitral proceedings would be oppressive, vexatious, unconscionable, or an abuse of process
• Whether the injunction would cause injustice to the claimant in the arbitration
• The significance of prompt application and avoidance of parallel proceedings
• The need to respect arbitral autonomy, independence, and finality
• The narrow and exceptional circumstances in which this form of relief is appropriate
Anti-arbitration injunctions thus remain a tightly controlled remedy. The Hong Kong courts continue to balance the need to prevent procedural abuse against the strong policy favouring minimal judicial interference in arbitration.
Lexis+ Practical Guidance Hong Kong offers practitioners a structured, practical resource to navigate this area with confidence. This Anti-arbitration injunctions Practice Note provides case-based insights, procedural guidance, and clear explanations to support effective dispute resolution strategy.
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