Scope of arbitration clauses: settlement agreements

The decision of the Hong Kong Court of First Instance in Bond Tak (Holdings) Ltd v King Fame Trading Ltd [2020] HKCFI 1509 is a further illustration of the point that an arbitration clause in a substantive agreement may not carry across to a settlement agreement entered into whereby disputes under the substantive agreement are resolved. The ruling is discussed by Edward Yang Liu, Legal Director, Hill Dickinson Hong Kong.

The facts