Hong Kong one step closer to arbitration success fees

Amendments to the Arbitration Ordinance, gazetted today, are the latest stage in the process to allow lawyers to charge based on success in an arbitration. The amendments, long-awaited by clients, passed Hong Kong’s legislative review quickly and without substantive amendment, demonstrating the strong support in the territory for these long-awaited changes. Hong Kong has enacted … Read more

Hong Kong Court of Appeal rules on landmark case regarding escalation clauses

Herbert Smith Freehills has secured an important judgment from the Hong Kong Court of Appeal, C v D [2022] HKCA 729, regarding escalation clauses – contractual provisions which require negotiation or mediation before either party can begin formal proceedings. These clauses are intended to promote the efficient resolution of disputes, but often lead to costly litigation. … Read more

Hong Kong gazettes success fee Bill

Hong Kong has officially published a Bill that would allow lawyers to agree outcome-based fees for arbitration work in the territory. If, as expected, the Bill passes into law later this year, it will allow lawyers in and outside Hong Kong to agree fees based on their clients’ success in the arbitration. This is a … Read more

HONG KONG: ARBITRATION FAVOURED OVER LABOUR TRIBUNAL IN EMPLOYEE BONUS DISPUTE

In a recent Hong Kong Court of First Instance decision MAK v LA [2022] HKCFI 285, the Court was presented with a dispute arising from a bonus letter silent on dispute resolution mechanism, and with conflicting dispute resolution clauses in related contractual instruments, including the employment contract. The Court ultimately concluded that the arbitration agreement … Read more

FURTHER HONG KONG JUDGMENT CONFIRMS THAT AN ARBITRAL TRIBUNAL IS “THE MASTER OF ITS OWN PROCEDURAL RULES” AND COMPLIANCE WITH PRE-ARBITRATION CONDITIONS SHOULD NOT BE REVIEWED BY THE COURTS

In the recent judgment of T v B [2021] HKCFI 3645, the High Court of Hong Kong observed that “if the Court is the master of its own procedural rules, so should be the arbitral tribunal“. In so doing, the Court reaffirmed the principle that compliance with pre-conditions to arbitration is a question of admissibility, … Read more