Hong Kong court departs from English law in its approach to arbitration clauses in insolvency cases

The team at Reed Smith cautions practitioners considering litigation strategy to be aware that the law on arbitration clauses in insolvency proceedings is different in Hong Kong than it is in England, with the Hong Kong court generally upholding an arbitration agreement in the absence of “countervailing factors such as the risk of insolvency affecting third parties” and “a dispute that borders on the frivolous or abuse of process”.

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