Co-authored by our Partner, Simon Wong, our Associate Pui Yee Cheryl Lo, and our Trainee Solicitor, Alison Choy, we are excited to share our latest article discussing a landmark decision by the Hong Kong Court of First Instance in the case of Bank A v Bank B [2024] HKCFI 2529. this article delves into the Honourable Madam Justice Mimmie Chan’s decision to grant an anti-suit injunction, reinforcing the strength of arbitration agreements.

In this case, Bank A, a German bank under liquidation, and Bank B, a Russian bank, were embroiled in a dispute over a Termination and Settlement Agreement (TSA) amidst the backdrop of EU sanctions due to the Russia-Ukraine war. The TSA, which included an arbitration clause for disputes to be resolved by HKIAC arbitration in Hong Kong, became the focal point when Bank B initiated proceedings in Russian courts, leading Bank A to seek anti-suit relief in Hong Kong.

The Court’s decision underscores Hong Kong’s commitment to uphold arbitration agreements, even in complex cross-border disputes involving sanctions and competing court orders. This case highlights the high threshold for “strong reasons” against granting anti-suit injunctions and reaffirms that arguments about sanctions or foreign law should be addressed in arbitration.

Read the full article to delve deeper into the legal principles and implications of this significant ruling.