Global law firm Clifford Chance has secured a successful outcome for its client, Eternity Sky, in a judgment handed down by the Court of Appeal today.
The appeal was brought by an individual, Mrs Zhang, who was ordered to pay Eternity Sky HK$ 500 million under a Hong Kong arbitration award. Mrs Zhang’s liability arose from a personal guarantee she had previously provided in respect of a HK$ 500 million convertible bond issued by a Hong Kong publicly listed company, which later defaulted on its obligations.
Mrs Zhang sought to resist enforcement of the award in England, on the basis that she signed the guarantee as a consumer and the guarantee infringed her rights under UK consumer protection legislation. Clifford Chance obtained a successful outcome for Eternity Sky in the High Court last year, which dismissed Mrs Zhang’s application to set aside the order enforcing the award. Mrs Zhang then appealed to the Court of Appeal.
In a unanimous decision, the Court of Appeal dismissed Mrs Zhang’s case on four out of five possible grounds. In doing so, it went a step further than the High Court, by reversing the High Court judge’s finding that Mrs Zhang was acting as a consumer.
The Clifford Chance team was led by London Head of Arbitration Marie Berard and Managing Partner for Mainland China Lei Shi and supported by senior associate Laura Hasson and associate Robert Shu. The Clifford Chance team were assisted by David Lewis KC of Twenty Essex and Gemma Morgan of Quadrant Chambers. In addition, partner Thomas Walsh, consultant Tania Tse and associates Haoyang Zhang and Karen Choi acted for Eternity Sky in the Hong Kong arbitration.
www.lawyer-monthly.com – June 11, 2024