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Changing Tack

A contract may require a party giving notice of a claim to specify the contractual or legal basis of that claim in the notice (or the supporting particulars). What if that party states a contractual or legal basis for the claim but later (perhaps with the benefit of additional information or because of advice from its lawyers) changes its mind or wants to include further contractual or legal bases? This was considered by the Hong Kong Court of Appeal in Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited [2020] HKCA 830. It found that a subcontractor could not change the contractual basis for its claim once the time period for providing such notice had expired. What, if any, impact will this decision have on the FIDIC forms of contract?

By |May 7th, 2021|Arbitration, featured, Knowledge Hub|Comments Off on Changing Tack

FIDIC Guidance Memorandum – A Half Baked Solution?

This article discusses whether the recently issued FIDIC Guidance Memorandum really does provide the answer to the vexed question of enforcement of binding, but not yet final DAB decisions. On 1 April 2013 the FIDIC Contracts Committee issued a Guidance Memorandum to users which is intended to be used with the Conditions of Contract for Construction (the ‘Red Book’), the Conditions of Contract for Plant and Design-Build (the ‘Yellow Book’), and the Conditions of Contract for EPC/Turnkey Projects (the ‘Silver Book’). The FIDIC Contracts Committee have stated that compliance with the guidance is highly recommended when using the 1999 FIDIC Red, Yellow or Silver Books. This article considers briefly whether the Guidance Memorandum is either necessary or useful.

By |June 1st, 2014|Arbitration, Dispute Boards, Knowledge Hub|Comments Off on FIDIC Guidance Memorandum – A Half Baked Solution?

Mind The Gap: Analysis of Cases and Principles Concerning the Ability of ICC Arbitral Tribunals to Enforce Binding DAB Decisions Under the 1999 FIDIC Conditions of Contract

Read the full article here.

By |January 1st, 2014|Arbitration, Dispute Boards, Knowledge Hub|Comments Off on Mind The Gap: Analysis of Cases and Principles Concerning the Ability of ICC Arbitral Tribunals to Enforce Binding DAB Decisions Under the 1999 FIDIC Conditions of Contract

Enforcement of DAB decisions – The legal justification for the ‘enforcement’ of a ‘binding’ DAB decision under the FIDIC 1999 Red Book

Read the full article here.

By |March 1st, 2012|Dispute Boards, Knowledge Hub|Comments Off on Enforcement of DAB decisions – The legal justification for the ‘enforcement’ of a ‘binding’ DAB decision under the FIDIC 1999 Red Book

Are ‘binding’ DAB decisions enforceble?

Four say YES: • The arbitral tribunal in ICC Case 10619 considered that it was simply the law of the contract. • This reasoning appears to have been followed in the DBF case. • A sole arbitrator in ICC Case 16948/GZ, said a final award was OK (this is contrary to the Court of Appeal in Singapore’s guidance). • A sole arbitrator in ICC Case 15751/JHN considered that a party should be required to pay that sum decided by the DAB and interest from the date when payment was due by way of damages for breach. Three say NO: • The Court of Appeal in Singapore (CRW v PGN) say NO in relation to a final award (and upheld the High Court’s decision to set aside the arbitral tribunal’s award, which was enforced by way of a final award) but, obiter, suggest that as long as the merits are placed before the arbitral tribunal, in principle, an interim or partial award enforcing should be possible. • A sole arbitrator in ICC Case 16119/GZ suggests that a partial final award and consequently also a final award are inappropriate devices to allow enforcement but suggests, obiter, that an interim award might be effective. • The sole arbitrator in ICC Case 16949/GZ concluded that damages could not include the sum adjudged as due by the DAB and so declined to enforce.

By |October 1st, 2011|Dispute Boards, Knowledge Hub|Comments Off on Are ‘binding’ DAB decisions enforceble?

FIDIC’s Clause 20 a Common Law View

‘No one can obtain an advantage by his own wrong.’ However, clause 20.1 of the FIDIC forms of contract appears to permit an employer to obtain an advantage where it has caused a delay and where the contractor has failed to give a notice in the 28 days specified. In such circumstance should a court or arbitrator uphold the notice provisions in the FIDIC contracts? This article considers what happens when a contractor fails to give a clause 20.1 notice with the result that the employer takes advantage of his or her own default. Under the FIDIC forms of contract, a contractor that wishes to make a claim for either time or additional money must give a notice in accordance with clause 20.1. Historically, courts and arbitrators in common law countries would hold the parties to their bargains whoever difficult or unconscionable the result might be. In recent years this position appears to be changing. The legislation in many common law countries imposes terms in contracts to protect consumers. In some jurisdictions, contacts may also be interpreted to avoid commercial absurdity, and in other jurisdictions the courts will strike down unconscionable bargains. There is also a doctrine, which is applied in many jurisdictions, that ‘No one can obtain an advantage by his own wrong’ (De Zotell v Mutual Life Ins. Co. of New York, 60 SD 532, 245. NW 58, 59). It is sometimes described as a ‘principle of equity’ and expressed in the maxims: ‘ex injuria non oritur jus’ or ‘the clean hands theory’.

By |June 1st, 2006|Knowledge Hub|Comments Off on FIDIC’s Clause 20 a Common Law View
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