Pre-hearing procedural order for refusal of defence

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2007
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It is not unusual to encounter a respondent reluctant or refusing to make a defence in an international arbitration. It deserves a discussion on the application of procedural measures for promoting efficiency of a hearing, as a hearing is very expensive. The author will present an international arbitral case of the Beijing Arbitration Commission/Beijing International Arbitration Centre (BAC).

The dispute arose from a purchase contract for minerals between a Hong Kong company (the applicant) and a mainland company (the respondent). The applicant filed an arbitration claim against the respondent, requesting compensation for overdue debt and the loss of interest. The respondent, while receiving the arbitration notice and appointing its counsel for this case, did not submit any defence or relevant evidence material.

In accordance with the BAC arbitration rules, the ordinary procedure was applied and the arbitration tribunal (AT) comprised three arbitrators. An eminent international arbitrator based in Hong Kong was appointed as presiding arbitrator, while the author was one of the co-arbitrators. In considering the above-mentioned situation, the AT decided to issue a pre-hearing procedural order.

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Audrey Huang is a former general counsel of China General Consulting & Investment, and also serves as an arbitrator at Beijing Arbitration Commission/Beijing International Arbitration Centre (BAC/BIAC). BAC/BIAC’s case manager Yang Rui also contributed to this article.

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