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Chinese Court Enforces SCC's $100 million Arbitral Award

Sat, 11 Sep 2021
Categories: China Legal News

In August 2021, Liaocheng Intermediate People's Court, Shandong ruled to recognize the arbitral award on Luxi Chemical Group Co., Ltd.'s (鲁西化工集团股份有限公司) breach of the Non-Use and Confidentiality Agreement on LP Oxo Technology it signed with Johnson Matthey Davy Technology Ltd. and Dow Global Technologies Ltd. The arbitral award was rendered on 7 Nov. 2017 by the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) in Swede.

The two applicants Johnson Matthey Davy Technology Ltd. and Dow Global Technologies Ltd. are world-renowned chemical companies, which jointly develop and operate the LP Oxo Technology for the production of butyl-octyl alcohol. On 10 Sept. 2010, the applicants signed the Non-Use and Confidentiality Agreement on LP Oxo Technology with the respondent Luxi Chemical Group Co., Ltd., and disclosed part of technical information to the respondent. Pursuant to the Agreement, the respondent is bound by a non-use and confidentiality obligation with respect to the information provided by the applicants. However, they eventually failed to reach an agreement on the technology license. Afterward, the applicants found out that the respondent had breached its obligation of non-use and confidentiality by using the confidential technology without the applicants’ authorization to build several plants. On 28 Nov. 2014, the applicants applied for arbitration to the SCC Arbitration Institute in accordance with the arbitration clauses of the Agreement. On 7 Nov. 2017, the Arbitration Institute rendered a final award on such issues as whether the respondent breached the contract, whether an injunction should be issued against the respondent, and the amount of compensation to be paid by the respondent and the interest accrued thereon. On 26 Dec. 2017, the Arbitration Institute issued a supplemental award on the interest payment after the final award. The amount of compensation determined in the award exceeds US$ 100 million.

 

 

Cover Photo by Jeff He (https://unsplash.com/@jeffhe) on Unsplash

Contributors: CJO Staff Contributors Team

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