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Those interested in resolving disputes through litigation in Hong Kong should keep in mind that civil proceedings there are regulated by the Supreme Court’s rules & Chief Justice’s Guidelines.

Commercial Courts

There’s quite a few procedures that can be used for initiating litigation in Hong Kong. Filing certain types of lawsuits requires following specialized procedures. Resolving commercial disputes by litigation in HK requires issuing a court order. Normally, filing a lawsuit involves the following steps:

  • plaintiff’s filing a claim;
  • defendant’s filing a statement indicating whether they intend to defend themselves; 
  • court’s initiating proceedings.

Interim Solutions

Settling commercial disputes by litigation in Hong Kong requires plaintiffs to file a motion that defendants cannot defend their claim or liability. A default decision can be made against defendants if they failed to inform them of their intention to defend themselves or didn’t defend themselves within deadlines stipulated in the rules.

Injunctions

Defendants may sometimes withdraw their assets from a jurisdiction after a court’s decision to initiate legal proceedings in HK against him. Given the ease with which money can be transferred electronically nowadays, this is a cause for grave concern. Therefore, injunctions are sometimes issued & dispatched to banking establishments holding defendants’ money, which the latter are required to follow up upon. 

Interim Measures

HK is the sole jurisdiction outside the PRC where parties are allowed to apply to mainland courts. Available interim measures include injunctions & other measures aimed at maintaining or restoring the status quo pending the settlement of a dispute in HK.

Numerous Participants

Settling disputes involving numerous parties in HK isn’t regulated by any particular provisions. It’s been recommended that all participants be automatically deemed bound by a litigation in the event of a class action suit; however, this recommendation hasn’t been implemented yet.

Representation

Without a solicitor, initiating or continuing proceedings in HK is currently impossible. Previously, parties could only be represented by solicitors in higher courts; however, that limitation was later removed. Now, solicitors seeking to apply to higher courts are required to meet certain requirements which include having a certificate acknowledging completion of internship & possessing due professional skills.

Non-Residents 

Initiating proceedings against non-residents in HK requires obtaining a court permit. Reasons for obtaining a permit may be different but they must convince the court that settling an international dispute by litigation in HK is the only suitable course of action.

Foreign Courts

While settling international commercial disputes in HK, local courts may enforce decisions of courts in other countries by registration.

The Mutual Agreement contains recommendations for recognizing & enforcing decisions connected to property-related disputes, unethical competition & IP rights infringement. It also covers judgments rendered in criminal cases. There’s certain limitations relating to the exclusive jurisdiction of courts resolving commercial disputes in HK.

Foreign courts may be assisted by HK courts in retrieving evidence from HK-based witnesses which may be used for administering proceedings abroad.

Funding

Financing litigation by 3rd parties isn’t normally permitted; however, there may be exceptions to that rule. Individuals might be legitimately interested in a litigation’s outcome, which can make their financial support perfectly justifiable. Financing lawsuits against plaintiffs unable to pursue them for monetary reasons is also permissible.

Conclusion

Effectively dealing with issues related to litigation in Hong Kong requires seeking advice from real experts. IQ Decision UK’s team of professionals will be happy to come to your rescue in any situations involving legal proceedings in HK.