We successfully resisted an application for setting aside the registration of a Mainland judgment in the Court of Hong Kong.

The underlying dispute concerns the defendant’s engagement for our client, the plaintiff, to organize a World Electronic Sports Games in Suzhou, PRC. The Games were held, but the defendant defaulted in payment. The Intermediate People’s Court of Suzhou handed down a judgment (the ,“Mainland Judgment”) ordering the defendant to pay a sum above RMB 3 million. Our client registered the Mainland Judgment in the Court of Hong Kong for cross-border enforcement purposes.

To avoid enforcement in Hong Kong, the Defendant raised 5 grounds in support of the set aside application. All 5 grounds were rejected by Deputy High Court Judge Alan Kwong, who held that:-

1. There was a choice of Mainland court agreement within the meaning of Mainland Judgments (Reciprocal Enforcement) Ordinance (Cap. 597) (the “Ordinance”).

2. The Mainland Judgment involves compensation, and not a penalty of punitive nature.

3. The Defendant was indeed summoned to appear before the Mainland Court, and documents were effectively served.

4. The allegation for material non-disclosure is not made out.

5. It is undesirable to de-register and re-register an order just to deal with a clerical error in which the slip rule applies.

There are three takeaways.

First, clients who navigate across options to enforce Mainland judgments may consult lawyers in Hong Kong in order to benefit from the avenues provided under the Ordinance.

Meanwhile, as parties who are subject to Mainland judgments may wish to raise a wide array of complaints during the enforcement process, it is strategically important to differentiate main points of attack against peripheral issues.

Finally, sports law has become a rapidly evolving area of legal practice in Hong Kong. As legal practitioners explore how the legal system can contribute in amicable resolutions of sports-related disputes, let us not forget that the integral function of the Court’s adversarial system continues to play a pivotal role in resolving such disputes judicially.

This case is led by our Partner Ms. Jenny Wong, assisted by Trainee Solicitor Ms. Chloe Fan.