Arbitration of Disputes in China and Hong Kong: Challenges and Opportunities CHICAGO ♦ November3,2008 HOUSTON♦November5,2008 LOSANGELES ♦ November6,2008 TABLE OF CONTENTS I. Presenters'Biographies TabA DavidJ.A.Boyle(Partner,HongKong) 1 PhilippaCharles(Partner,London) 3 WilliamH.Knull(Partner,Houston) 5 JeffreyW.Sarles(Partner,Chicago) 8 JamesE.Tancula(Partner,LosAngeles) 10 TerenceR.Tung(Partner,Beijing) 12 TimothyJ.Tyler(Counsel,Houston) 14 II. ArbitrationinHongKong TabB III. ArbitrationinChina TabC IV. TreatyProtectionforInvestmentsinChina TabD V. Real-LifeIssues: HypotheticalorNot-So-HypotheticalScenarios TabE TAB A DavidJ.A.Boyle Partner HongKong [email protected] Ph:+85228432215 Fax:+85221035059 Experience  Conductinglitigation,arbitrationandmediationofconstructiondisputesincludingclaimsarisingfrom constructiondefects,plantandequipment,non-conformanceanddesignresponsibilities  Advisingondisputesregardingvariationsandmeasuredwork;claimsarisingfromdelaytocompletion; disputesinrelationtoinsuranceclaimsintheconstructioncontext  ExtensiveexperienceinactingforGovernmentdepartmentsandstatutorycorporations,transportand infrastructureentities,educationandtraininginstitutions,hospitals,housingsocieties,propertydevelopers, utilities,insurers,consultantsandbanks  Actingforutilitiesandinfrastructureclientsinratingandvaluationappeals  CompletedTheLawSocietyofHongKongMediationTrainingCourseandundergoingaccreditation assessment DavidisapartnerofJSM. NotableEngagements  CathayPacific–representingEmployerinrelationtomediationofconstructiondispute  HighcliffDevelopmentsLtd–resolutionofbuildingcontractdisputes  HKInstituteofEducation:TaiPoCampusDevelopment–actingforHongKongInstituteofEducationwith regardtoconstructionclaimsfromcontractors  HongKongHousingAuthority:TinShuiWaiArea31PhaseI–conductofclaimforrecoveryofdamages fromContractorandInsurersarisingfromnon-compliantfoundations  HongKongHousingAuthority-conductofvariousarbitrationproceedingswithcontractors  HongKongHousingSociety:MaOnShanSite–actingforHongKongHousingSocietyindefenceofclaim broughtonbehalfofContractor  HongKongHousingSociety:KaiTak,TseungKwanO–actingforHongKongHousingSocietyin arbitrationproceedingsbroughtbycontractor,andinrecoveryofmoniesunderperformancebonds  HongKongGovernmentWorksBureau–actingforHongKongGovernmentindefenceofarbitration proceedingsonvariousprojects  UrbanRenewalAuthority–actingfortheUrbanRenewalAuthority(andformerlyfortheLandDevelopment Corporation)invariouscontentiousandnon-contentiousconstructionmatters Education TheNottinghamTrentUniversity(formerlyTrentPolytechic),CPE•UniversityofOxford,MA 1 Languages  English Admitted  HongKong,1991  England&Wales,1985 Memberships  TheCharteredInstituteofArbitrators,Member 2 PhilippaCharles Partner London [email protected] Ph:+442077828875 Fax:+442077828943 "Hasalwaysbroughtcommonsenseandleadershiptohercases" UKLegal500,2007 Experience AmemberoftheInternationalCommercialDisputesgroup,PhilippaCharlesfocusesoninternationalarbitration. Her internationallitigationpracticeparticularlyemphasizesclientrepresentationindisputesarisingoutofcross-border contracts.Sheregularlyadvisesclientsonallaspectsofarbitrationpracticeandprocedure. PhilippahasarbitrationexperienceincasesunderICC,LCIA,UNCITRAL,ICSID,andLMAARules,aswellasinadhoc arbitrations.Philippaalsobringsanddefendswarrantyclaimsinrelationtoavarietyofcorporatetransactions, includingclaimsinvolvingoilandgasindustrysupportservices,thefoodpackagingindustryandaweb-basedtrading platform.Herexperiencewithdistributionagreementdisputesincludesbothbringinganddefendingclaimsarising outofmanufacturer/distributorrelationships,usuallyinvolvingpartiesindifferentcountries.Shealsohasexperience withbothdomesticandinternationaljointventureagreementdisputesandisfluentinFrench.SheisaSolicitor AdvocatewithrightsofaudienceinallHigherCourtsinEnglandandWales,andshequalifiedasaCEDRAccredited MediatorinJuly2007. NotableEngagements  AdvisingtheArgentineRepublicinICSIDarbitrationinvolvingallegedbreachesofbilateralinvestment treaties.  (1)MichaelAnthonyPowell(2)WilliamGraham(3)HgInvestmentManagersLimitedv.GeneralElectric Company,2005,concerningtheproperconstructionofescrowprovisionsinasharesaleagreement.  MRWTechnologiesLtdv.(1)CecilHoldingsLtd(2)CharterPLC,2001,anauthorityoncertainaspectsofthe CivilProcedureRules.  UnitedPan-EuropeCommunicationsN.V.v.DeutscheBankAG,2000,aleadingcaseconcerningtheinter- relationshipbetweenconstructivetrusts,fiduciarydutiesandtheuseofconfidentialinformation.  ICCarbitrationinParisconcerninglandreclamationworksinaMiddleEasternstate.  ICCarbitrationinLondonconcerningacreditcardfranchiseagreement.  LCIAarbitrationsinLondoninrelationtopoliticalriskinsurancepolicycoverage,andinrelationtoasub- contractor'sliabilityforallegedlyinadequatedesign.  UNCITRALarbitrationinLondonregardingpaymentsduetosub-contractorarisingoutofrefinery constructionproject.  ICCarbitrationinrelationtotheconductofpartiestoaJointVentureAgreementwithregardtoproperty developmentsintheMiddleEastandAmerica.  AdvisingaparticipantinaJointVentureintheMiddleEastrelatedtotheoilandgasindustryonissues relatingtoterminationrightsandclaimsarisingoutoftheperformanceoftheJointVentureAgreement worthinexcessof$100million.  UNCITRALarbitrationinBelgiumrelatingtodisputedterminationofadistributionagreement. 3  AdHocarbitrationinLondonconcerningadisputedsupplycontractandinvolvingcontestedjurisdiction,as wellasissuesinrelationtoenforcementinanon-EUjurisdiction. Education OxfordInstituteofLegalPractice,DiplomainLegalPractice(Distinction),1996•UniversityofOxford,BA (Jurisprudence),1995 Admitted  SolicitorAdvocatewithHigherRightsofAudience(CivilandCriminal),2005  EnglandandWales,1999 Publications  "Anti-suitInjunctionsinDefenceofArbitration:ProtectingtheRighttoArbitrateinCommonandCivilLaw Jurisdictions,"BloombergEuropeanLawJournal,February2008  "ArbitrationClauses:InclusiveRatherthanExclusive,"GlobalArbitrationReview,December2007  "PowerPlay,"ReproducedwiththekindpermissionofSolicitors'Journal,September30,2005  VindobonaJournalofInternationalCommercialLawandArbitration,Sub-editor,2002todate Seminars  "Pre-EmptiveStrikeorAttackonComity:EnglishAnti-SuitInjunctionsandtheRestoftheWorld,"11th AnnualReviewofArbitrationAct1996,London,January2008  "AlterEgosintheUSAandEngland":astudyoftheapplicationofthealteregodoctrineincasesinvolving claimsagainstStates,foraconferenceon"NewDevelopmentsinStateImmunity,"London,October2007  "RecentdevelopmentsinInternationalLitigationandArbitration,"CentralLawTrainingCommercial LitigationConference,September2005,March2006,September2006,March2007  "Jurisdiction:WhereonEarthdoWeStart?"CentralLawTrainingInternationalLawConference,March2005  "TheRoleofMediation,"HawksmereSeminaronLitigationandtheIn-HouseLawyer,December2004  "TheStandardofProofinInternationalArbitrations,"and"TheAlternativestoLitigation,"theCentrefor InternationalLegalStudiesconferencesoninternationalarbitrationandADR,Salzburg,Austria,June2002 andJune2004 ProfessionalActivities  Member,ICCCommissiononArbitrationTaskForceontheNewYorkConventionof1958,2007  Member,LondonCourtofInternationalArbitration  Member,CharteredInstituteofArbitrators,2000  Associate,CharteredInstituteofArbitrators,1999 4 WilliamH.Knull Partner Houston [email protected] Ph:+17132382636 Fax:+17132384636 "anextremelyintelligent,diligentanddiplomaticlawyerwhojustknowshowtowin" ChambersUSA2007 Experience WilliamKnullhasbeenengagedformorethan30yearsinresolvingcomplexbusinessdisputesthrougharbitration andlitigation.Manyofthedisputeshaveinvolvedtransnationaltransactionsintheoilandgasindustry, encompassingsuchissuesasarbitraljurisdiction,interpretationandoperationofjointventureagreements,reserve engineeringandvaluation,transportation,marketing,supplyagreements,enterpriserisk,complexchoiceoflaw, multiplicityofpartiesandproceedings,enterpriseandoilfieldoperationalmatters,andsimilarconcerns. Billhasbeeninvolvedasleadcounselandcounselinallvarietiesofcomplexcorporate,commercial,andfinancial litigationinstateandfederalcourtsandininternationalanddomesticarbitration.Hehasextensiveexperiencein transnationalanddomesticdisputesinvolvingoilandgasrelatedmatters,mergersandacquisitions,contracts, corporateandsecuritiesfraud,accountingmalpractice,lendingpractices,automotiveproductsandfranchising matters,litigationandinvestigationofproblemsofcorporatemanagementandgovernance,fiduciaryobligations, andemployeefraud. BillalsohasextensiveexperienceascounselandleadcounselinarbitrationsundertheauspicesoftheAAA,ICSID, ICC,ICDRandNASD,andadhocproceedingspursuanttoUNCITRALRules,primarilyinvolvinginternationaldisputes intheoilandgasindustry. Hehasbeenleadcounselinmulti-billiondollardisputesinvolvingcontractual,operational, accounting,governance,jurisdictional,andrelatedissuesarisingfromMiddleEastern,CentralAsian,andChineseoil andgasprojects. Billhasbeencalled"anextremelyintelligent,diligentanddiplomaticlawyerwhojustknowshowtowin"(Chambers USA2007),aswellas“profoundlyexperiencedincommercialarbitration(Who’sWhoLegalTexas2007),a“talented, reliableandeffective”litigatorwitha“greatprofileinthemarket”(ChambersUSA2005),andpartofa“terrificteam” thatenjoysa“highreputationforadvocacyamongitsclients”(ChambersUSA2006).Billhasbeenconsistentlylisted inthepublicationTexasSuperLawyerssince2005.HehasaworkingknowledgeofSpanishandFrench. NotableEngagements  ServedasleadcounselfortheGovernmentofTurkmenistanandvariousTurkmengovernmentalentitiesin defenseofmulti-billiondollarclaimsbroughtbyBridasSAPICinthreeICCarbitrations,arisingoutofoiland gasjointventuresinTurkmenistan. Theissuesincludedarbitraljurisdiction;contractualinterpretation;joint ventureaccountingandgovernance;prudentconductofdrilling,developmentandproductionoperations; andvaluationofoilandgasreservesinthefaceofgeologic,politicalandmarketrisk.  Servedastrialco-counselforCargillasclaimantinICSIDAdditionalFacilityproceedingagainstMexico allegingviolationsofNAFTAarisingoutoftaxandimportmeasuresfavoringdomesticsuppliersofsugar oversimilarlysituatedforeignsuppliersofhighfructosecornsyrup.  Servedasco-leadcounselinanICDRarbitrationonbehalfofaCanadianimportertoenforceacontractfor thepurchaseofrailroadcarwheelsfromaUkrainiansteelmill. 5  ServedasamemberoftheteamadvisingtheProcuradordelTesorodelaNaciónwithrespecttothe developmentofstrategiesanddefensestoclaimsassertedagainstArgentinabyinvestorsbeforeICSID.  ServedasleadcounselforthelargestNorthAmericanmanufactureroffertilizerinAAAarbitration/litigation arisingoutofcontractforthesupplyofnaturalgasfeedstock.  ServedastheleadcounselforaKazakhconsultingfirmagainstanindependentoilcompanyinadhoc arbitrationunderUNCITRALrulestoenforceacontracttopayaconsultingfeeinconnectionwiththe acquisitionofanoilandgasfieldinKazakhstan.  ServedastheprincipalsupportingcounselforamajorinternationaloilcompanyinAAAarbitrationbrought byaUSindependentproduceragainstallofthemajorintegratedandindependentoilcompaniesoperating concessionsinLibyaintheearly1970sallegingbreachofagreementamongproducerstoaddress interruptionsinsupply. Education UniversityofVirginiaSchoolofLaw,JD,1977;OrderoftheCoif;VirginiaLawReview,Member,1975-1977;Notes Editor,1976-1977•YaleUniversity,BA,magnacumlaude,1970;DepartmentalHonorsinPoliticalScience Admitted  USDistrictCourtfortheEasternDistrictofTexas,1989  USDistrictCourtfortheNorthernDistrictofTexas,1988  USDistrictCourtfortheWesternDistrictofTexas,1988  USCourtofAppealsfortheFifthCircuit,1988  USDistrictCourtfortheSouthernDistrictofTexas,1987  Texas,1987  USCourtofAppealsfortheSecondCircuit,1984  USDistrictCourtfortheNorthernDistrictofNewYork,1983  USDistrictCourtfortheEasternDistrictofNewYork,1978  USDistrictCourtfortheSouthernDistrictofNewYork,1978  NewYork,1978 Publications  “AccountingforUncertaintyinDiscountedCashFlowValuationofUpstreamOilandGasInvestments,”JERL 2007,Vol25,No3,August2007,withScottT.Jones,TimothyJ.TylerandRichardD.Deutsch  "BettingtheFarmonInternationalArbitration:IsitTimetoOfferanAppealOption?"11Am.Rev.Int'l.Arb. 531(2002),withN.Rubins Seminars  “AccountingforUncertaintyinDiscountedCashFlowValuationofUpstreamOilandGasInvestments,” InstituteforEnergyLaw,Houston,October10,2007  “TheProsecutionandDefenseofanOil&GasArbitration: TheFacts,”inSpecializedArbitration&Advocacy SkillsinInternationalOil&GasDisputesSeminar,CentreforEnergy,Petroleum&MineralLaw&Policy, UniversityofDundee,St.Andrews,Scotland,August27-31,2007  “TheMidnightClause:TenTrapstoAvoidinDraftingArbitrationAgreements,”InternetSeminar,June19, 2007,withPhilippaCasey  “PresentationofEvidenceinInternationalArbitration,”LeadingArbitrators’SymposiumontheConductof InternationalArbitration,JurisConferences,Chicago,September2006,Panelist 6  “UncertaintyintheCourts:SplitinUSAppellateCourtsonExpandedJudicialReviewbyAgreementof Parties,”inBarrierstoFreeMovementofCivilJustice,CenterforInternationalLegalStudies,Salzburg, Austria,November2001,www.cils.net/November2001/November2001.htm  “ArbitratingOilandGasDisputesInvolvingCISParties,”Moscow,October2000,withTerriTruittGriffiths, LevonGrigorian,TimothyJ.TylerandNoahD.Rubins  “CIS-RelatedOil&GasDisputeResolutionintheWest: MajorConsiderationsandPracticalLessonsinOil& Gas,”inOil&GasintheCISLegalandTaxSolutionsEuroforum,Houston,May2001 ProfessionalActivities  InstituteofTransnationalArbitration,Member,AdvisoryBoard  InstituteforEnergyLaw,Member,AdvisoryBoard  AAAPanelofArbitrators  CharteredInstituteofArbitrators,Fellow  LondonCourtofInternationalArbitration  CenterforInternationalLegalStudies,Fellow  InternationalBarAssociation  AmericanBarAssociation  StateBarofTexas  HoustonBarAssociation 7