Compliance With Dispute Escalation Clauses – A Matter for the Arbitral Tribunal

July 2022
Region: Asia Pacific
A recent case in the Hong Kong Court Appeal concerning dispute escalation clauses will have far-reaching consequences in jurisdictions such as Australia which have adopted the UNCITRAL Model Law on International Commercial Arbitration. In dismissing an appeal to set-aside an arbitral award, the Court held that any disagreement concerning compliance with a dispute escalation clause should be resolved by the arbitrators appointed by the parties, rather than the courts. The Court’s decision reflects the increasing willingness of courts in Model Law jurisdictions to limit judicial interference in arbitral proceedings.