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Hong Kong - Application for an Anti-Suit Injunction

Hong Kong -  Application for an Anti-Suit Injunction

In the ongoing case of Dickson Valora Group (Holdings) Co Ltd and another vs Fan Ji Qian [2019] HKCFI 482, the Court was looked with a notable  application for an anti-suit injunction, whereby the Hong Kong Court was welcomed to injunct procedures in the People’s Republic of China (PRC) on a novel premise.

The first Plaintiff is a joint venture company (the Company) formation of which took place by Moravia CV (Moravia), a Mexican owned corporate vehicle, and Dickson Holdings Enterprise Co Ltd (DHE), a corporate vehicle possessed by the Defendant. Moravia, DHE and the Company went into an shareholders’ agreement overseeing the activity of the Company and its completely claimed backup, the second Plaintiff. The investors' agreements was thusly enhanced and altered by an supplementary agreement and different addendums to the same. Of specific importance to the application was the way that the investors' understanding contained an intervention proviso for mediation in Hong Kong.

The parties’ relationship came to an end. In June 2018, unknown to the Plaintiffs, the Defendant started procedures against the Plaintiffs in the PRC under the third addendum to the agreement. One of the conditions in this addendum accommodated a triumph charge to be paid to the Defendant, despite he was not involved with that understanding or to be sure any of the strengthening and investors' understandings. After finding the presence of the PRC procedures, the Plaintiffs' challenged the jurisdiction of the Court (based on the intervention provision). This test was dismissed by the PRC Court. Presently, the Plaintiffs applied in Hong Kong for an anti-suit injunction against the Defendant. The Court, having thought about the accompanying issues, allowed the suit.