中国土木工程集团有限公司 v. Hui Chen, Woreda 06, Bole, Addis Ababa, Ethiopia

At a glance

Parties

China Civil Engineering Construction Corporation (中国土木工程集团有限公司, CCECC) (applicant) v. HUICHEN (respondent)

Case no.

(2020)京04民特652号

Court

Beijing No. 4 Intermediate People's Court

Forum and rules

Application to confirm the validity of an arbitration agreement, PRC Arbitration Law; underlying CIETAC arbitration No. P20200091

Treaty

Arbitration clause (Article 10.1) in three subcontracts; Chinese law governs (Article 10.3)

Court

Ma Jun (presiding judge), Mei Yu, Zhao Jia

Sector

Railway construction (Mieso–Dewele railway, Ethiopia)

Outcome

Application dismissed on 28 October 2020. Whether CCECC is a party to the clause is a merits question for the arbitral tribunal.

Amount

Application fee of RMB 400, borne by the applicant

The dispute

HUICHEN, an Ethiopian contractor, signed three subcontracts in 2013 for works on the Mieso–Dewele railway project in Ethiopia: an off-line (substructure) works subcontract, an earthworks subcontract, and a concrete and rebar labour subcontract. In late 2019 HUICHEN started CIETAC arbitration P20200091 against CCECC under the CIETAC clause in the subcontracts. CCECC then asked the Beijing court to declare that the arbitration agreement was invalid, or did not bind CCECC. It argued that the contracting party was its Mieso–Dewele project management department, which was registered as a separate legal person under Ethiopian law. HUICHEN replied that the subcontracts were signed by CCECC employees acting for CCECC, including an assistant general manager of CCECC. It also argued that the application raised merits issues outside the court's review and was an abuse of process, filed the day before the arbitration hearing.

Key holdings

1. The arbitration clause in the three subcontracts is valid. It is in writing and states an intention to arbitrate, the matters to be arbitrated and the chosen commission (CIETAC), as Article 16 of the Arbitration Law requires. None of the grounds of invalidity in Article 17 applies. pp. 7–8
2. The subcontracts name the project management department as the contracting party, but the authorised signatories were also CCECC employees. Whether their signing amounted to apparent agency (表见代理), and so whether CCECC is a party bound by the clause, is a merits question for the arbitral institution. The court should not decide it in proceedings to confirm the validity of an arbitration agreement. p. 8
3. CCECC's application was dismissed under Articles 16 and 20 of the Arbitration Law. CCECC bears the application fee of RMB 400. p. 8

Procedural history

1. 24 January 2013Off-line works subcontract signed. The signature block bears the CCECC Mieso–Dawanle Railway Project seal and the name Li Wuliang.
2. 16 December 2013Earthworks subcontract and labour subcontract signed, under the signature of Xiao Jinliang.
3. 12 November 2019HUICHEN filed its request for arbitration with CIETAC.
4. 31 January 2020CIETAC accepted the case as No. P20200091.
5. 3 May 2020Arbitral tribunal constituted.
6. 30 July 2020CIETAC held that CCECC's objection on party status concerned the merits and decided that the arbitration would continue.
7. 24 September 2020The Beijing No. 4 Intermediate People's Court docketed CCECC's application, one day before the arbitration hearing set for 25 September 2020.
8. 28 October 2020Ruling dismissing CCECC's application.

Tribunal, counsel and experts

Decided by

• Ma Jun (马军) Judge, Beijing No. 4 Intermediate People's Court (presiding judge)
• Mei Yu (梅宇) Judge, Beijing No. 4 Intermediate People's Court
• Zhao Jia (赵佳) Judge, Beijing No. 4 Intermediate People's Court

For the claimant

北京合弘威宇律师事务所

For the respondent

上海市科伟律师事务所

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Keywords

• validity of arbitration agreement
• CIETAC
• CCECC
• apparent agency
• party to arbitration agreement
• non-signatory
• project management department
• Mieso–Dewele railway
• Addis Ababa–Djibouti railway
• Ethiopia
• subcontract
• PRC Arbitration Law Article 16
• PRC Arbitration Law Article 17
• PRC Arbitration Law Article 20
• kompetenz-kompetenz
• judicial review of arbitration

Summary generated with AI from the published documents — refer to the award for the authoritative text.