Stay of proceedings: costs of stay proceedings

Judicial proceedings commenced in breach of an arbitration clause constitute a breach of contract. It has been held by the Court of First Instance in Hong Kong, in Chimbusco International Petroleum (Singapore) Pte Ltd v Fully Best Trading Ltd HCA 2416/2014, that it is appropriate for the defendant who successfully seeks a stay of the proceedings to be awarded costs on an indemnity basis. The law in England is to the same effect. The case is discussed by Edward Yang Liu, Reed Smith Richards Butler, Hong Kong.

Chimbusco : the facts