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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
Second Issue of the Journal of Private International Law for 2025
The third issue of the Journal of Private International Law was published today. It contains the following articles
Andrew Tettenborn, “English conflicts law at sea – the transfer and creation of proprietary interests in ships”
Surprisingly, the law applicable to the creation and transfer of proprietary interests in ships remains remarkably obscure as a matter of the English conflict of laws. In this article an attempt is made to investigate the relevant authorities and to reconcile them. The conclusion is that, subject to exceptions, English courts will recognise transfers if they are effective under any one or more of (1) the lex situs, (2) the law of the registry and (3) (in the case of equitable interests) English law.
Gerard McCormack, “Hands up for UK joining the Hague Judgments Convention 2019 but lukewarm on the UK returning to the Lugano Convention 2007”
This article considers the relative merits of the Hague Judgments Convention 2019 and the Lugano Convention 2007 for the UK in the post-Brexit era viewed primarily from the extent of the insolvency exceptions in both Conventions (and in the Hague Choice of Court Convention 2005) as they apply to UK schemes of arrangement and UK restructuring plans for companies. The article briefly takes account of some broader issues relating to arbitration and exclusive choice of court agreements, primarily through the lens of The Prestige litigation, before reaching a conclusion in favour of the UK having become a Party to the Hague Judgments Convention 2019 in 2025 and against the UK rejoining the Lugano Convention 2007.
Guangjian Tu and Tiezheng Yang., “The doctrine of public policy in Chinese courts’ choice of law in the modern age”
It is generally agreed that in private international law the doctrine of public policy plays a fundamentally important role in the application of foreign law and can work as a safety valve. This doctrine has also been reflected in Chinese legislation as in many other jurisdictions. However, the application of this doctrine in Chinese courts is inconsistent, which could not only lead to uncertainty but also jeopardise justice. This article examines how the doctrine of public policy has been applied in choice of law in Chinese courts since 2010 when the new Chinese choice of law codification was made. It finds that there are basically four main types of cases in which Chinese courts have applied the doctrine of public policy to exclude the application of foreign laws. After detailed analysis and reflection, it is suggested that this doctrine continue to be applied for some of those cases but not for others.
Katja Karjalainen, “Acquiring a child abroad and paths to parenthood in Finland: The difference between private adoptions and international surrogacy arrangements”
The article delves into issues of legal tourism and global justice. By referencing the Hague Adoption Convention as well as Finnish legal approaches and case law with respect to the confirmation of a child-parent relationship following private intercountry adoptions and international surrogacy arrangements (ISAs), the article elaborates on the problematics of recognition. Doubts with respect to ethical and commercial aspects of arrangements and the deprivation of rights of vulnerable individuals have been presented with respect to both cases. The article shows the paradox between the legal approaches in these two cases that both entail an independent endeavour to get a child abroad. In doing so, the article underlines how the regulatory framework built up by the Hague Adoption Convention for the area of intercountry adoptions creates more space for global justice and collective interests than non-regulation, but may, in some cases, be detrimental to individual rights and interests. Non-regulation of ISAs underlines individual rights and interests and at the same time erodes domestic legal norms.The article delves into issues of legal tourism and global justice. By referencing the Hague Adoption Convention as well as Finnish legal approaches and case law with respect to the confirmation of a child-parent relationship following private intercountry adoptions and international surrogacy arrangements (ISAs), the article elaborates on the problematics of recognition. Doubts with respect to ethical and commercial aspects of arrangements and the deprivation of rights of vulnerable individuals have been presented with respect to both cases. The article shows the paradox between the legal approaches in these two cases that both entail an independent endeavour to get a child abroad. In doing so, the article underlines how the regulatory framework built up by the Hague Adoption Convention for the area of intercountry adoptions creates more space for global justice and collective interests than non-regulation, but may, in some cases, be detrimental to individual rights and interests. Non-regulation of ISAs underlines individual rights and interests and at the same time erodes domestic legal norms.
Maria Hook, “Are “extraterritorial” consumer laws anti-internationalist?”
This article asks whether extraterritorial consumer laws, defined as laws that create a risk of regulatory overlap, are anti-internationalist. Drawing on New Zealand law as a case study, the article argues that extraterritorial consumer laws may recognise intersecting but legitimate regulatory interests. If the plaintiff gets to choose the law, indirectly or directly, there is an appropriate process for identifying the applicable law based on the principle of favor laesi. In this sense, extraterritorial consumer laws do not just give effect to local interests, to be balanced with competing internationalist concerns. Rather, they themselves may reflect an internationalist approach to private international law, even if the approach is not universally adopted. The article then explores potential implications of this argument for the court’s analysis of the applicable law and jurisdiction. Courts may be more willing to embrace an extraterritorial interpretation of consumer laws, and to lean into the plaintiff’s ability to rely on foreign law despite local law also being applicable in principle (as has happened in New Zealand). Courts may also treat the plaintiff’s choice of forum with deference when they decide whether to exercise jurisdiction on the basis of the doctrine of forum (non) conveniens.
Aleksandrs Fillers, “Venue in the Brussels Ia Regulation”
Anybody who has even superficial knowledge of EU private international law has heard about its cornerstone – the Brussels Ia Regulation. Typically, the major issue when dealing with the said regulation is to determine which Member State can hear the dispute. However, the Brussels Ia Regulation has a second layer. In addition to rules of international jurisdiction, the Regulation, as interpreted by the CJEU, contains venue rules that determine which specific court can hear a case. This issue is far less known to courts and practitioners and often glossed over by scholars. The article aims to provide a comprehensive study of venue rules in the Brussels Ia Regulation.
Third Issue of the Lloyd’s Maritime and Commercial Law Quarterly for 2025
The third issue of Lloyd’s Maritime and Commercial Law Quarterly for 2025 has recently been published. It contains two private international law case notes and a book review.
Andreas Giannakopoulos, “Asymmetric Jurisdiction Clauses and EU Exceptionalism”
Matthew Hoyle, “Full Service: Freezing Injunctions and Service Out (Again)”
Thomas Raphael, “The Virtues of Symmetry”
Call for Papers: 4th APILA Conference, Doshisha University (Kyoto, Japan), 13–14 December 2025
The fourth annual APILA Conference will take place in person at Doshisha University in Kyoto (Japan) on Saturday 13 (Day 1) and Sunday 14 (Day 2) December 2025. The APILA Conference will be in the form of two days of roundtable discussions in English. Persons whose abstracts have been selected (see next paragraph) will deliver oral presentations in turn on Days 1 and 2. Each presentation will run for about 10 minutes and be followed by a discussion of about 10 to 15 minutes in which participants will have the opportunity to comment on the presentation. The objective of the APILA Conference is to assist presenters to refine prospective research papers with a view to eventual publication. Read more



