Recognition of an Arbitral Award in Hong Kong: A Full-Service Case
Many companies succeed in international arbitration but face the key question: how to actually recover funds abroad.
We recently shared news of the successful recognition of an arbitral award rendered by the ICAC at the Ukrainian Chamber of Commerce and Industry in Cyprus (the description of this case is available here).
We would now like to present a successful case involving the recognition of a foreign arbitral award in Hong Kong.
Key Aspects of the Case
REVERA’s lawyers represented the client from the preparation and dispatch of the pre-arbitration claim through to the recognition of the arbitral award and obtaining the enforcement order.
Although both jurisdictions apply the 1958 New York Convention, in practice the procedure differs in its details.
In Hong Kong, several key procedural issues arose:
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Applicant’s Affidavit
Under the common law system applicable in Hong Kong, an application is made by way of affidavit — written evidence given on oath. At the same time, Hong Kong imposes stricter procedural requirements. For example, there was a requirement for notarisation of the affidavit of the director of a Belarusian company concerning the facts set out in the application for recognition of the arbitral award.
The issue was that notarisation of affidavits is not practised in the Republic of Belarus.
Solution
As an alternative, we used a notarial certification of signature on the document (i.e. notarisation of the authenticity of the signatory’s signature rather than notarisation of the affidavit itself).
Translation of Documents
The language of the arbitration and the documents relevant to the case was Russian; therefore, all materials had to be translated into English.
In Hong Kong, documents may be submitted in English; the translation must be certified by an official or sworn translator, or by a diplomatic or consular officer.
| In this case, the translator’s signature (from Russian into English) was certified by the Secretary of the Consulate General of the Russian Federation in Hong Kong. |
Timeline
The proceedings took approximately two months.
Key Takeaway for International Business
A favourable foreign arbitral award is only half the battle.
The crucial stage is recognition and/or enforcement in the country (jurisdiction) where actual recovery is sought (i.e. where the debtor’s assets are located).
That is why we recommend planning the enforcement strategy before the arbitration even begins, taking into account:
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jurisdictions where assets are located;
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timeframes for recognition;
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procedural requirements;
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costs of the proceedings.
We regularly assist with the recognition of arbitral awards in various jurisdictions and help structure international enforcement strategies.
REVERA’s lawyers have prepared a guide on the recognition of foreign arbitral awards in certain CIS countries and Georgia. The guide will be updated, and additional jurisdictions will be added over time.
Authors: Alina Marchyk, Aliaksei Fedarovich.
If you require recognition and/or enforcement of a foreign arbitral award, REVERA’s lawyers will be pleased to assist.
We have cross-border expertise and an extensive network of offices and professional contacts, enabling us to work effectively across multiple jurisdictions.
Contact a lawyer for further inforamtion
Contact a lawyer