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Experts warn conditional fees are double-edged sword

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The legal community, which has studied the idea of conditional fees over the past decade, yesterday said the arrangement could both harm and benefit litigation and justice in Hong Kong.

Leaders of both branches of the profession - the Bar Association and the Law Society - said members would make submissions on the Law Reform Commission consultation paper, which recommends the ban be lifted.

The paper favours increasing the financial eligibility requirement for legal aid and for the Supplementary Legal Aid Scheme, but also says conditional fees would allow middle-income litigants better access to justice.

Law Society president Peter Lo Chi-lik said that according to the traditional argument against conditional fees, giving lawyers a bigger stake in a case's outcome creates temptation to 'bend the rules'.

He also said while such an arrangement may enhance access to justice for those who wish to sue, it may also inadvertently encourage nuisance lawsuits.

'It will address certain imbalances but whether it will go too far in the other direction is hard to say,' he said. 'It makes it easier to sue, but also makes it easier to get sued. Justice is all about balancing principles and value judgments and that is always very difficult.'

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