CK Hutchison faces limited legal options after Panama voids port rights: experts
Hong Kong-based CK Hutchison Holdings faces limited legal avenues to challenge a Panama court ruling that nullified its rights to operate two major ports at the country’s canal, while taking the case to the International Court of Justice will require Beijing to act on its behalf, a legal expert has said. Basil Hwang, managing partner…
Hong Kong-based CK Hutchison Holdings faces limited legal avenues to challenge a Panama court ruling that nullified its rights to operate two major ports at the country’s canal, while taking the case to the International Court of Justice will require Beijing to act on its behalf, a legal expert has said.
Basil Hwang, managing partner of law firm Hauzen LLP, said billionaire Li Ka-shing’s conglomerate could turn to a suitable court with jurisdiction over Panamanian assets to seek damages against the country through seizures elsewhere.
“It appears the Supreme Court that delivered the judgment annulling CK Hutchison’s port contracts is Panama’s highest court,” Hwang said. “It’s not clear to me that CK Hutchison has any avenues of appeal in Panama.”
Hwang pointed to an alternative litigation strategy involving foreign jurisdictions.
“CK Hutchison’s options appear limited – it could take action against Panama in a neutral court and attempt to seize Panamanian assets overseas as damages,” he said.
“Any suitable court that has jurisdiction over Panamanian assets, for example, assets held in that jurisdiction, ships passing through, might be an option. The court would, however, have to accept jurisdiction in the first place.”
Hwang added that another obstacle for CK Hutchison was that Panama would almost certainly plead “sovereign immunity” if the country was sued in a foreign court.
