Over the past ten years, Hong Kong’s government has been doing its best to demonstrate its citizens & the rest of the world that resolving disputes through mediation can be indeed a highly effective tool. As a process of voluntary resolution of disputes, mediation became part of the country’s legislation following the civil litigation reform. The Bill on Mediation, which was later passed into law, laid legal groundwork for promoting mediation & everything to do with it. Hence it follows that resolving disputes through mediation in the Hong Kong Special Administrative Region is one of the most effective ways of settling commercial differences parties might resort to.
Pros & Cons of Hong Kong’s Mediation System
Being a faster and thus more effective way of resolving disputes, mediation enables companies to to resolve their disputes in Hong Kong without resorting to litigation. Mediation can be particularly useful in cases when a business dispute has the potential of damaging a company's reputation. Given the damage that may result from a published court order, a client may be interested in resolving a commercial dispute through mediation in Hong Kong at its early stages. Resolving disputes through mediation in Hong Kong can, therefore, be considered a win-win solution for both parties.
However, for the mediation process to be a success it must meet several key criteria. They include:
- qualifications of a mediator
- willingness of the parties to resolve their dispute
- treatment of the parties on the part of legal representatives
- complications that the parties cannot foresee & control
Resolving Cross-Border Disputes Through Mediation in Hong Kong
Resolving cross-border disputes through mediation can present a bigger challenge than resolving disputes locally. Choosing litigation can, therefore, be a more preferred option, and particularly because having a judicial decision enables the parties to safeguard themselves against regulatory implications. Difficulties can be caused not only by differences in the jurisdictions’ laws, but also by differences in legal practices & cultural differences.
Latest Developments
Following the 2009 campaign, more than one hundred companies committed themselves to using mediation as an alternative to other methods of resolving disputes in Hong Kong. Since then, the number of companies willing to resort to mediation as an alternative method of resolving disputes has been steadily growing. In its turn, ihe Government of Hong Kong remains committed to fostering mediation in all manner of ways.
2018 witnessed the opening of the 1st electronic arbitration center dedicated to mediation in Hong Kong S.A.R. Funded by the government of Hong Kong, the center represents an online platform for concluding transactions & settling disputes by means of mediation in the Hong Kong Special Administrative Region
Conclusion
There’s multiple opportunities for those wishing to settle disputes through mediation in Hong Kong S.A.R. And with each passing year, the interest in mediation as a way of settling disputes only grows. If you’re interested in resolving commercial disputes in Hong Kong or England, IQ Decision UK is always at your service.
