Case Note - Dalian Huarui Heavy Industry International Company Ltd v Clyde & Co Australia (a firm)  WASC 132
Journal article | September 2020 | Available for purchase & free for members
This case provides an illustration of the use by an international arbitration tribunal of a pre-award power to direct security for the amount in dispute. The source of the power was s 12(1)(g) of the Singapore International Arbitration Act 1994 (‘SIAA’). There is no equivalent power in the International Arbitration Act 1974 (Cth) (‘IAA’), although such a power could be given to a tribunal by agreement. The WA Supreme Court considered the effect of a direction to give security in the exercise of that power and the terms of a trust agreement entered into by the parties to implement the direction. The court considered whether the circumstances were distinct from those applicable to a freezing order and gave rise to a security interest in the security monies under the Personal Property Securities Act 2009 (Cth) (‘PPSA’), and whether a later insolvency of the party giving the security made any difference.
We thank the authors of this Case Note Greg Steinepreis and the journal editor Russell Thirgood for their contribution to this journal.