AGREEMENT TO NEGOTIATE AND TO MEDIATE HELD TO BE UNENFORCEABLE

Hyundai Engineering and Construction Co Ltd v Vigour Ltd [2005] BLR 416

In Hyundai Engineering and Construction Co Ltd v Vigour Ltd [2005] BLR 416 the High Court of the Hong Kong Special Administrative Region Court of Appeal held that an agreement to meet in order to ‘resolve any differences’ between the parties was too uncertain to be enforced. Further, it was held that an agreement to submit to ‘Third Party Mediation procedure’ any unresolved difference was not enforceable because the reference to mediation lacked specificity. The vague nature of the reference to mediation was held to distinguish the present case from the case of Cable & Wireless plc v IBM UK Ltd [2003] BLR 89 (on which see our February 2003 issue, pp.10–12). In reaching this conclusion the court relied upon the decision of the House of Lords in Walford v Miles [1992] 2 AC 128 and, indeed, may be said to have given the latter case a rather expansive interpretation.