Full title: 49 existing court cases on invalidness of arbitration agreement - The arbitration agreement beyond the scope of arbitration is invalid (10)
Case 36. If a mainland party submits a dispute that does not involve foreign factors to a foreign or Hong Kong, Macao, and Taiwan arbitration institution for arbitration, the arbitration clause shall be invalid.
Case Name: Ling and Lu applied for confirmation of the validity of the arbitration agreement
Case number: (2021) Hu 02 Min Te No. 358
Reason for Judgment: Regarding the validity of Article 9.3 of the Arbitration Agreement on the Entrusted Holding of Shares, firstly, the agreement on the entrusted holding of shares involved in the case was signed and confirmed by Ling and Lu, and it should be considered that both parties have reached a consensus on the content of the agreement. The Agreement on Entrusted Holding of Shares was modified on the original template document, but the arbitration clause 9.3 of the dispute was not deleted, and Lu's signature was below the clause. Ling claimed that the dispute clause was not modified or deleted due to negligence, and there was no Direct evidence to prove it, which was not enough to override the effect of the parties' signature. Therefore, it should be considered that Article 9.3 of the agreement is the true expression of the parties' intentions, and the arbitration clause in dispute has been established. Secondly, according to the provisions of Article 271 of the Civil Procedure Law of the China and Article 65 of the Arbitration Law of the People's Republic of China, the parties may submit disputes arising from foreign-related economic, trade, transportation and maritime disputes to China's arbitration institutions or other arbitration institutions for arbitration by concluding arbitration clauses in the contract or a written arbitration agreement reached afterwards. Lingmou and Lumou are both registered residence in Shanghai, and their habitual residence is not outside China or Hong Kong, Macao and Taiwan; The original of the "Share Entrustment Holding Agreement" was formed using a document revision mode, and the words related to Travo Network Limited were revised to replace them with the words related to XX company. Lu Mouhao also failed to provide evidence to prove that the two parties signed the "Share Entrustment Holding Agreement" to hold the equity of Travo Network Limited on behalf of them. Therefore, the subject matter of the "Share Entrustment Holding Agreement" is the equity of XX company, The company's registration and business premises are both within the territory of China; The signing and performance of the Share Entrustment Holding Agreement has not occurred outside China or in the Hong Kong, Macao, and Taiwan regions. Lu Mouhao is also unable to provide evidence to prove that this case has any foreign-related factors. Therefore, this case does not belong to the situation with foreign-related factors as stipulated in Article 1 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Law of the China on Civil Relations with Foreign Interests (I). Due to the fact that the current laws in China do not allow mainland parties to submit disputes that do not have foreign-related factors to foreign or Hong Kong, Macao, and Taiwan arbitration institutions for arbitration, the agreement between the two parties in this case that the disputed arbitration clause should be invalid.
Case 37. Labor disputes are not within the scope of civil and commercial arbitration and should be handled through labor arbitration procedures.
Case name: Lin Mouhua and the Fifth Affiliated Hospital of Southern Medical University applied to confirm the validity of the arbitration agreement
Case number: (2019) Yue 01 Min Te 1458
Reason for adjudication: Article 3 of the Arbitration Law of the China stipulates that contract disputes and other property rights disputes between citizens, legal persons and other organizations with equal subjects may be arbitrated. Article 3 stipulates that the following disputes cannot be arbitrated: (1) disputes over marriage, adoption, guardianship, upbringing, or inheritance; （2） Administrative disputes that should be handled by administrative organs according to law. The training agreement involved in the case was signed between Lin Mouhua and the Fifth Hospital of Southern Medical University during the existence of labor relations. Disputes arising from this agreement should be resolved through labor arbitration procedures and do not fall within the scope of civil and commercial arbitration. Therefore, the arbitration clause in Article 7 of the training agreement is invalid.
Case 38. If the agreement falls within the scope of administrative agreement and does not fall within the scope of the arbitration commission, the arbitration clause in the agreement shall be invalid.
Case name: Yanji Municipal People's Government's Application for Confirmation of the Validity of the Arbitration Agreement
Case No.: (2021) Ji24 Minte No. 4
Reason for adjudication: Article 3 of the Arbitration Law of the China stipulates that the following disputes cannot be arbitrated: (1) disputes over marriage, adoption, guardianship, support and inheritance; （2） Article 17 stipulates that in any of the following circumstances, the arbitration agreement shall be invalid for administrative disputes that should be handled by administrative organs in accordance with the law: (1) if the agreed arbitration matters exceed the scope of arbitration stipulated by law. In this case, the "Agreement on the Exchange of Property Rights for House Acquisition" signed by both parties on November 24, 2012 belongs to the scope of administrative agreements and does not fall within the scope of the arbitration commission. The applicant Yanji Municipal People's Government requested to confirm the reasons for the invalidity of the arbitration agreement.