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Tesseract: Don’t Over-React! The High Court of Australia, Proportionate Liability, Arbitration, and Private International Law
By Dr Benjamin Hayward
Associate Professor, Department of Business Law and Taxation, Monash Business School
X: @LawGuyPI, @MonashITICL
On 7 August 2024, the High Court of Australia handed down its long-awaited decision in Tesseract International Pty Ltd v Pascale Construction Pty Ltd [2024] HCA 24. The dispute arose out of a domestic commercial arbitration seated in South Australia, where the Commercial Arbitration Act 2011 (SA) is the relevant lex arbitri. That Act is a domestically focused adaptation of the UNCITRAL Model Law on International Commercial Arbitration (with its 2006 amendments).
The respondent to the arbitration sought to rely upon proportionate liability legislation found in the Law Reform (Contributory Negligence and Apportionment of Liability) Act 2001 (SA) and in the Competition and Consumer Act 2010 (Cth). The High Court was asked to determine whether those proportionate liability regimes could be applied in the arbitration. A very practical difficulty arose here, reflected in Steward J noting (in dissent) that the High Court was ‘faced with an invidious choice’: see [228]. Were the proportionate liability laws not to apply in the arbitration, the respondent might find themselves liable for 100% of the applicant’s loss, when they would not be liable to that same extent in court proceedings applying the same body of South Australian law. But were the proportionate liability laws to apply, the applicant might find themselves able to recover only a portion of their loss in the arbitration, and might then have to then pursue court proceedings against another third party wrongdoer to recover the rest: given that joinder is not possible in arbitration without consent. Read more
First Thai Monetary Judgment Enforced in China, Highlighting Presumptive Reciprocity in China-ASEAN Region
This post is kindly provided by Dr. Meng Yu, lecturer at China University of Political Science and Law, and co-founder of China Justice Observer.
Key Takeaways:
- In June 2024, the China-ASEAN Free Trade Area Nanning International Commercial Tribunal under the Nanning Railway Transportation Intermediate Court in Guangxi ruled to recognize and enforce a Thai monetary judgment (Guangxi Nanning China Travel Service, Ltd. v. Orient Thai Airlines Co., Ltd. (2023) Gui 71 Xie Wai Ren No. 1).
- Apart from being the first case of enforcing Thai monetary judgments in China, it is also the first publicly reported case confirming a reciprocal relationship based on “presumptive reciprocity”.
- The Chinese court’s confirmation that “presumptive reciprocity”, as outlined in the Nanning Statement, is a form of mutual consensus between China and ASEAN countries helps to promote the circulation of judgments within the China-ASEAN region.
News
AAPrIL’s June online seminar: The Law of the Arbitration Agreement – Australasian Perspectives
On Wednesday, 11 June 2025, the Australasian Association of Private International Law (AAPrIL) will hold its latest instalment of its online Seminar Series, as Timothy Lindsay of Lindsay Francis & Mangan presents on ‘The Law of the Arbitration Agreement – Australasian Perspectives’.
The topic:
Contracts with international arbitration agreements can engage a complex interaction of different laws: the governing law of the contract, the law of the seat, and the law of the arbitration agreement itself. Parties to international commercial contracts usually address the first two of these issues, but are often silent as to the law of the arbitration agreement. A light has recently shone on this well-known issue by the United Kingdom’s Arbitration Act 2025, which includes a new default rule for determining the law of the arbitration agreement, and similar changes to the Rules of the Singapore International Arbitration Centre, as well as developing case law in other jurisdictions. How might Australian and New Zealand courts react? Read more
Open Position as a Research Associate at Freiburg University
The Institute for Comparative and Private International Law (Department 3) at Freiburg University (Germany) is seeking a Research Associate (m/f/d), 26%, to begin as soon as possible. Read more
ZEuP – Zeitschrift für Europäisches Privatrecht 2/2025
A new issue of ZEuP – Zeitschrift für Europäisches Privatrecht is now available and includes contributions on EU private law, comparative law and legal history, legal unification, private international law, and individual European private law regimes. The full table of content can be accessed here.
The following contributions might be of particular interest for the readers of this blog:
- Anspruchsverjährung im deutsch-spanischen Rechtsverkehr
David Cuenca Pinkert and Alexander Kronenberg on the statute of limitation in cross-border situations involving Germany and Spain: Against the background of the relevance of the application of foreign law in practice, the article analyses the institute of the statute of limitations under Spanish substantive law and also deals with similarities and differences to German law as well as selective references to conflict of laws and particularities. Due to its practical relevance, the article focuses on the treatment of the limitation period for tortious claims for damages, especially as a result of road traffic accidents. - EGMR „Klimaseniorinnen“ – Konsequenzen für private Klimaklagen?
Marc-Philippe Weller and Franka Weckner comments on the decision by the ECtHR in Klimaseniorinnen and discuss the consequences of this decision for climate litigation brought before civil courts.