This article looks at the situation where a Hong Kong plaintiff has commenced proceedings in Hong Kong against a mainland Chinese defendant who subsequently applies to the Hong Kong court to stay those proceedings in favour of proceedings already commenced or intended to be commenced by the defendant in the mainland.
Where the mainland proceedings have not yet commenced, the defendant must identify the specific court in the mainland that it asserts is the appropriate forum for the dispute. It must also show that the plaintiff will be able to bring its case in the mainland, to ensure that if the plaintiff’s proceedings in Hong Kong are stayed, it does not find itself in a position where the mainland court does not allow him to bring proceedings there for jurisdictional reasons.
The Hong Kong court has to decide whether the interests of all parties, and of justice, will best be served by proceedings in Hong Kong or the mainland. To make that decision, it will consider the following factors.
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Cheung Kwok Kit is a Hong Kong-based partner at Deacons. He can be contacted on +852 2825 9427 or by email at kwokkit.cheung@deacons.com.hk
Philipp Hanusch is a Hong Kong-based associate at Deacons. He can be contacted on +852 2826 5314 or by email at philipp.hanusch@deacons.com.hk
