Coronavirus (COVID-19)

This subtopic is a source of resources for arbitration practitioners in light of the coronavirus (COVID-19) pandemic.

Across the world, arbitral organisations and practitioners have responded, and will continue to respond, to the outbreak with practical guidance, advice and adjustments to their standard operating procedures as society adjusts to the virus.

Coronavirus and its affects require parties, practitioners and arbitrators to think carefully about how the pandemic may influence arbitral proceedings already on foot or which have yet to be commenced.

In advance of commencing arbitral proceedings (including any applications for expedited and emergency arbitration), it is vital for practitioners to check the latest guidance provided by any relevant arbitral organisation that may impact standard processes. In pending proceedings, parties should liaise with their tribunals and the other parties to resolve any challenges that arise, including in relation to conducting hearings during this period when social distancing, travel restrictions and other limitations apply.

It is also very likely that any arbitration-related court processes will be impacted by the outbreak, and it will be important to stay up to date with the latest guidance from the relevant

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‘Any dispute arising out of or in connection with this contract’—Singapore Court of Appeal clarifies scope of arbitration agreement (COSCO Shipping v PT OKI)

Arbitration analysis: This case involved an appeal against the dismissal of an application for an anti-suit injunction restraining the first respondent from continuing foreign court proceedings which had allegedly been brought in breach of an arbitration agreement. Although the foreign court proceedings involved a tortious claim in respect of damage to a trestle bridge caused by a vessel owned by the appellant, it was held that the claim arose out of or was in connection with certain bills of lading evidencing contracts of carriage entered into between the appellant and the first respondent, and had therefore been brought in breach of the arbitration agreement contained in each bill of lading. The appeal was allowed, and an anti-suit injunction granted. In the course of its decision, the court clarified the ambit and scope of the phrase ‘dispute arising out of or in connection with this contract’, which (either in these exact terms or some variation thereof) is commonly found in dispute resolution agreements. The court also provided useful guidance on when a dispute beyond the terms of a contract may nonetheless fall within the scope of an arbitration clause employing such terms. Written by KOH Swee Yen senior counsel, head (International Arbitration Practice) and partner (Commercial & Corporate Disputes Practice) at WongPartnership LLP, and Samuel LOW, associate at WongPartnership LLP.

Malaysia (stay of court proceedings in favour of arbitration) Court of Appeal provides guidance on approach to be taken when considering a stay application (Asia Pacific Higher Learning Sdn Bhd v Stamford College (Malacca) Sdn Bhd)

Arbitration analysis: In dismissing an application to stay court proceedings pending a reference to arbitration, the Malaysian Court of Appeal (“Court of Appeal”) clarified the approach that ought to be taken by the courts when considering a stay application under Section 10 of the Malaysian Arbitration Act. When there is plainly an arbitration agreement but an assertion is made that the arbitration agreement was invalidated because it is null and void, inoperative or incapable of being performed, the courts should apply the ‘just and convenient’ approach, ie—in a situation where both the court and the arbitral tribunal have jurisdiction and power to investigate and conclude on the validity of an arbitration agreement, the appropriate forum to do so must be the, on balance, more just and convenient forum, having regard to the facts and circumstances in issue. This contrasts with the situation where the existence of the arbitration agreement itself is in issue. In such circumstances, the courts should adopt the ‘prima facie approach’ which is to consider whether there is prima facie an arbitration agreement to resolve disputes. If so, the court should then stay the proceedings and leave the dispute to be decided by the arbitral tribunal. Written by Asya Jamaludin, partner at CMS Cameron McKenna Nabarro Olswang (Singapore) LLP.

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