W V AW

[2021] HKCFI 1707, Hong Kong Special Administrative Region (Court of First Instance), Justice Mimmie Chan, 17 June 2021

Arbitration – Serious irregularity – Issue estoppel – Two arbitrations between the same parties on the same issues – Opposite conclusions reached – Whether second award should be set aside – Apparent bias

W and AW were parties to a Share Redemption Agreement and a Framework Agreement. Each agreement contained an arbitrator clause. In January 2017 W commenced arbitration against AW under the Framework Agreement, and in June 2017 a second arbitration was commenced by AW against W under the Share Redemption Agreement. Each of the tribunals consisted of three members, and there was one common arbitrator. The award in the Framework Agreement arbitration was handed down on 13 March 2020. The tribunal found that AW was in breach, and AW’s counterclaim seeking avoidance for misrepresentation was rejected. The award in the Share Redemption Agreement arbitration was handed down on 13 July 2020. The tribunal accepted AW’s case on misrepresentation rejected in the first arbitration and held that AW could rescind. Both awards were unanimous. W sought to set aside the second award on the grounds of issue estoppel and apparent bias.