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In the recent case of Stronghold Insurance Company, Inc. v Spouses Rune and Lea Stroem (“Stronghold”),[1] the Philippine Supreme Court held that a non-party to a construction agreement cannot invoke the arbitration clause therein. This involved an agreement for the construction of a house (“Agreement”). The Contractor, as required by the Agreement, secured a performance bond (“Bond”) from petitioner Surety. The project was not finished on time prompting the Owner to file a complaint in…

Hot off the press is the new book on Construction Arbitration in Hong Kong, published by Wolters Kluwer Law & Business, which was launched last week. Edited by James Kwan and Christopher To, and written by well-known practitioners in the field, this book hopes to provide the readers with the practical knowledge and skills needed to understand the subject as well as to foster the promotion of a better dispute resolution culture in the construction industry often categorised…

In a recent decision, Citigroup, Inc. v. Abu Dhabi Inv. Auth., No. 13-4825-cv, 2015 U.S. App. LEXIS 549 (2d Cir. Jan. 14, 2015), the Second Circuit Court of Appeals ruled that it is for arbitrators, not courts, to decide the claim-preclusive effect of a federal judgment confirming an arbitral award. Plaintiff-Appellant Citigroup and Defendant-Appellee Abu Dhabi Investment Authority (“ADIA”) entered into an investment agreement whereby ADIA invested billions into Citigroup. The agreement contained an arbitration clause…

In Seagate Technology, LLC v. Western Digital Corp., No. A12-1944 (Minn. Oct. 8, 2014), the Minnesota Supreme Court confirmed a AAA award of over $500 million after determining that the arbitrator did not exceed his authority in issuing punitive sanctions for the fabrication of evidence by a party. Case Background Sining Mao (“Mao”) was a former director at Seagate, a hard drive company, who worked on technology to improve storage capacity. When Mao joined Seagate,…