Hong Kong court found Notice of Arbitration by SMS Sufficient (CCC v AAC)
Arbitration analysis: In CCC v AAC, the Hong Kong Court of First Instance dismissed the respondent’s application to set aside an ex parte order granting leave to the applicant to enforce an arbitral award made online by the Hong Kong Arbitration Society (HKAS). The court held that no clear basis of fraudulent act by the applicant was found and the expedited nature of online arbitration in the present case did not amount to a denial of due process. Further, on evidence, the court found that the respondent had proper notice of the proceedings and, by agreeing to arbitration under the HKAS Online Arbitration Rules (HKAS Online Rules), had accepted SMS as a valid method of serving notice of arbitration. The court also discussed, in obiter dictum, the importance of notice in online arbitration, particularly in the context of moneylending transactions. Written by Min Li, partner at Reed Smith Richards Butler LLP and Patrick Chong, associate at Reed Smtih Richards Butler LLP.