Hebei Import & Export Corp. v. Polytek Engineering Co. Ltd.

1 H.K.L.R. 665, 38 I.L.M. 681 (1999)

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Hebei Import & Export Corp. v. Polytek Engineering Co. Ltd.

Hong Kong Court of Final Appeal
1 H.K.L.R. 665, 38 I.L.M. 681 (1999)

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Facts

[Ed’s note: The casebook excerpt first recites facts from the Hong Kong Court of Appeal opinion, 1 H.K.L.R. 287 (1998), and later presents the reasoning of the Hong Kong Court of Final Appeal.] Polytek Engineering Co. Ltd. (Polytek) (defendant) agreed to sell equipment for the production of rubber powder to Hebei Import and Export Corp. (Hebei) (plaintiff). After the equipment was delivered, Hebei alleged that it was defective and commenced arbitration proceedings before the China International Economic and Trade Arbitration Commission (CIETAC). The arbitral panel issued an award in favor of Hebei, and Polytek challenged the award in Hong Kong court. The Hong Kong Court of Appeal set aside the award on the ground that the chief arbitrator had taken the arbitral panel’s appointed experts to Hebei’s facility so that the experts could inspect the equipment in question with Hebei’s technicians present, but without prior notice to Polytek. Polytek was not present during the inspection. Polytek did not attempt to contest the expert report during the arbitration proceedings. Hebei appealed the court of appeal’s decision setting aside the award.

Rule of Law

Issue

Holding and Reasoning (Litton, J.)

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