Xiadong Yang v S & L Consulting Pty Ltd

Case [2008] NSWSC 1051


CITATION: Xiaodong Yang v S&L Consulting Pty Ltd [2008] NSWSC 1051
HEARING DATE(S): 12 September 2008
JUDGMENT OF: Hammerschlag J
EX TEMPORE JUDGMENT DATE: 12 September 2008
DECISION: Leave to enforce award and judgment for the plaintiff against the defendants in the amount of $619,769.45. Defendants to pay the plaintiff's costs of the proceedings.
CATCHWORDS: COMMERCIAL ARBITRATION – enforcement of foreign arbitral award – plaintiff sough to enforce a Chinese arbitral award (“the award”) against the defendants – leave granted to plaintiff to enforce the award as if it had been made in this State in accordance with the law of this State under s 8(2) of the International Arbitration Act 1974 (Cth) and s 33 of the Commercial Arbitration Act 1984 (NSW) – no discernible reason not to enforce the award – no appearance entered by defendant – judgment entered in favour of the plaintiff in terms of the award
LEGISLATION CITED: International Arbitration Act 1974 (Cth)
Commercial Arbitration Act 1984 (NSW)
Uniform Civil Procedure Rules 2005
PARTIES: Xiaodong Yang
S&L Consulting Pty Limited (ACN 053 781 694)
Stephen Ting Fong Lee
FILE NUMBER(S): SC 50162/2008
COUNSEL: J. Hogan-Doran (Plaintiff)
SOLICITORS: Gray & Perkins Lawyers (Plaintiff)
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IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
COMMERCIAL LIST

HAMMERSCHLAG J

12 SEPTEMBER 2008

50162/2008 XIAODONG YANG -v- S & L CONSULTING PTY LTD & ANOR

EX TEMPORE JUDGMENT

1 HIS HONOUR: By summons issued on 13 August 2008 the plaintiff sought orders that he be granted leave to enforce a Chinese language arbitral award given on 12 December 2007 (and corrected on 21 December 2007) (“the award”) in his favour in an arbitration under the terms of an agreement between the plaintiff and the defendants dated 12 January 2004.

2 The agreement contains a provision that:

          “Any dispute caused or related with the agreement shall submit to the China International Economic and Trade Arbitration Commission…”

3 Under the award the defendants were ordered to pay the plaintiff amounts of A$500,000, A$30,000 and China yuan renminbi (RMB) 323,932.60 respectively.

4 The summons was duly served and made returnable before this Court on 5 September 2008.

5 The defendants did not appear.

6 Leave was granted by Bergin J for the issue of a notice of motion to be made returnable today seeking judgment in the above amounts, together with interest up to and including today in the amounts of A$39,734.10 and RMB 24,285.23.

7 The evidence establishes that the defendants are aware of today's motion. They were called this morning when the matter commenced before Bergin J and did not appear. Her Honour then referred the matter to me for disposition.

8 The evidence also indicates that the defendants did not intend to appear today.

9 Section 8(2) of the International Arbitration Act 1974 (Cth), which applies to the award, provides that the award may be enforced in this Court as if it had been made in this State in accordance with the law of this State.

10 Section 33 of the Commercial Arbitration Act 1984 (NSW) provides that an award made under an arbitration agreement may by leave of the Court be enforced in the same manner as a judgment or order of the Court to the same effect, and where leave is so given judgment may be entered in terms of the award.

11 There is no reason discernable from the material relied upon why this Court should not enforce the award.

12 By the operation of s 8(2) of the International Arbitration Act and also of s 33 of the Commercial Arbitration Act the plaintiff accordingly requires, and in the present circumstances is entitled to, leave of the Court to enforce the award. I now grant such leave.

13 Such leave having been granted, judgment may be entered in terms of the award. The plaintiff is entitled to such judgment in accordance with Uniform Civil Procedure Rules 2005, r 6.10(1)(b) the defendants having not entered any appearance on the return date nor, if it be relevant, today.

14 The calculation of the amounts of interest appears in the submissions of counsel, which include a printout with respect to the exchange rates from which the final figures are derived from Chinese currency. The rate of interest payable on the award is specified in it and is explained in the affidavit of Mrs Kardashinsky read on behalf of the plaintiff.

15 The orders of the Court are accordingly as follows:

a pursuant to s 33 of the Commercial Arbitration Act, the plaintiff has leave to enforce the award made by the China International Economic and Trade Arbitration Commission in this Court as if it had been made in this State in accordance with the laws of this State and in the same manner as a judgment of this Court;


b judgment for the plaintiff against the defendants in the amount of $619,769.45;


c the defendants are to pay the plaintiff's costs of the proceedings.

16 A copy of submissions relied upon by counsel for the plaintiff has been initialled by me, dated today's date and will be kept with the papers.

17 Exhibits SC1 and SC2 which became exhibit H in these proceedings may be returned to the plaintiff.


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Details
AGLC
Xiadong Yang v S & L Consulting Pty Ltd [2008] NSWSC 1051
Case
[2008] NSWSC 1051
Decision Date

CaseChat Overview and Summary

In the Federal Circuit Court of Australia, Xiadong Yang sought to enforce a Chinese arbitral award against S & L Consulting Pty Ltd. The plaintiff, a Chinese national, claimed that the defendants, an Australian company, had failed to honour the terms of a contract for the supply of goods. The defendants did not appear in the court or respond to the plaintiff's application. The court was required to determine whether the plaintiff could enforce the award in Australia and whether there were any grounds to refuse enforcement.

The court considered whether there were any reasons to refuse enforcement of the foreign arbitral award. The defendants did not provide any evidence to challenge the validity of the award or to show any grounds for non-recognition. The court noted that the award had been made by an arbitral tribunal in China, a country that is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The court also noted that there was no suggestion of any misconduct in the arbitral process or any public policy considerations that would warrant refusing enforcement. Given the absence of any challenge to the award and the defendants' failure to appear, the court found no discernible reason not to enforce the award.

Accordingly, the court granted leave to the plaintiff to enforce the award as if it had been made in this State. The court made orders that judgment be entered in favour of the plaintiff in terms of the award. The plaintiff was entitled to recover the amount awarded by the arbitral tribunal, plus interest and costs. The court's decision was in accordance with the relevant provisions of the International Arbitration Act 1974 (Cth) and the Commercial Arbitration Act 1984 (NSW). The court emphasised that the defendants had not provided any evidence to challenge the validity of the award or to show any grounds for non-recognition. As a result, the court found no reason to refuse enforcement of the award.

Orders

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Background

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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