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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
Out Now: Elgar Concise Encyclopedia of International Commercial Arbitration
Despite all recent efforts from the HCCH 2019 Judgments Convention to the founding of International Commercial Courts (ICC) promoting the attractiveness of court litigation, the most favoured method for resolving international disputes in civil and commercial matters, without a single doubt, remains arbitration. According to the 2025 QMUL International Arbitration Survey an overwhelming majority of respondents (87%) would choose international arbitration either as a standalone mechanism (39%) or in combination with other mechanisms of alternative dispute resolution (48%). Read more
Mediating Across Borders: A Guide to Cross-Border Family Dispute Resolution by Costanza Honorati and Ester di Napoli
In response to the growing complexity of cross-border family disputes – driven by increasing mobility and evolving family configurations – the recently published Guida alla mediazione familiare internazionale in materia di responsabilita genitoriale e sottrazione internazionale di minori, authored by Costanza Honorati and Ester di Napoli (Pacini Editore, 2025; available online in open access, in Italian), offers a rigorous and thematically cohesive guide to the law and practice of cross-border family mediation. Grounded in both European and multilateral legal instruments, the volume brings together doctrinal precision, procedural clarity, and practical insight, establishing itself as an essential reference for legal practitioners, judges, mediators, and scholars navigating the intricate terrain of cross-border family justice. Read more
[OUT NOW] Yeshniyazov and Abdel Mottaleb on Kazakhstan, in International Encyclopaedia of Laws – Private International Law (Kluwer Law International)
Private international law in post-Soviet Central Asian countries is clearly underrepresented in the literature, despite the fact that countries such as Kazakhstan and Uzbekistan have fairly detailed legislation on international jurisdiction, applicable law, and the enforcement of foreign judgments. (For a general overview of Kazakhstan, see the entry on the country in J. Basedow et al. (eds), Encyclopedia of Private International Law, Vol. III (Edward Elgar), p. 2229, and the English translation of the relevant provisions in Vol. IV, p. 3358.) Read more