Sadhwani v. Sadhwani

52 Minshū (No. 3) 853 (1998)

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Sadhwani v. Sadhwani

Japan Supreme Court
52 Minshū (No. 3) 853 (1998)

Facts

The Bank of India (the bank) sued Hong Kong residents (plaintiffs) in a Hong Kong court, demanding the Hong Kong residents’ performance of obligations pursuant to a guarantee. The Hong Kong residents counterclaimed in that first action and commenced a second action against the bank in Hong Kong, seeking subrogation. A third action was commenced in Hong Kong by the Hong Kong residents against Sadhwanis Japan Limited (Sadhwanis) (defendant), a Japanese company, seeking indemnification. The Hong Kong residents prevailed in the indemnification action and motioned for costs. The Hong Kong residents hired a Japanese attorney to serve the motion on Sadhwanis via personal delivery. Sadhwanis objected to the motion, arguing that the Hong Kong court lacked jurisdiction. The Hong Kong court entered a judgment awarding costs to the Hong Kong residents. The Hong Kong residents filed an execution action in Japan, seeking to enforce the Hong Kong court’s judgment against Sadhwanis. The Japan lower court ruled in favor of the Hong Kong residents. Sadhwanis appealed, arguing that the Hong Kong court’s judgment was unenforceable in Japan.

Rule of Law

Issue

Holding and Reasoning (Chikusa, J.)

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