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Anita Lam

Lawyers are worried about their business prospects after the city's first guidelines to promote mediation came into effect yesterday.
To minimise waste of court resources and litigants' time and money on unnecessary legal battles, the courts have been advising civil case litigants, whenever appropriate, to adopt alternative dispute resolution  such as mediation since April's Civil Law Reform.
Litigants who  reject the court's advice without sound reason may lose their rights to legal costs despite winning. 
However, veteran solicitor Daniel Wong Kwok-tung doubts  the effectiveness of mediation. The lawyer specialises in conveyancing and probate disputes - the  areas most suitable for mediation - and fears mediators may snatch some of the lawyers' jobs.
'Solicitors may be left with less business [amid competition from mediators],' Wong said. 
'But for those willing to do mediation, they might actually earn more. We will wait and see.'
Out of 6,548 practising lawyers registered with the Law Society, only 300 have taken mediation courses so far, and  only one third of them have gained accreditation from the recognised legal institutions in Hong Kong.
'There are still many questions unanswered,' Wong said. 'Are mediators exempt of liability like when judges make rulings in court? Do insurance companies indemnify the clients of their losses when mediators make mistakes?'
 Oscar Tan Khain-sein, a mediation co-ordinator with the Law Society, said many lawyers still had misconceptions  about the procedure.
'A mediator is not a judge, he doesn't rule and is not supposed to give his opinion. He just helps the two sides  reach a solution themselves.'
Insurance agencies also indemnify the parties of losses  incurred by  mediators' mistakes, providing the mediator works for a firm. Independent mediators, however, would have to negotiate the terms individually with insurance providers.
The courts began promoting mediation  in the wake of the Civil Law Reform in April. Not only is it cheaper as the cost is split between the parties, but it usually takes just  13 hours to resolve a case,  whereas court litigation  can drag on for years.
However, the shorter time required to handle a mediation means a lower profit margin for lawyers.
'Suppose a mediator charged HK$2,000 an hour. For 13 hours of service, it makes HK$26,000,'  Tan said. 'A lawyer charges an hourly rate of HK$3,000 and many items are charged separately.'
But Tan said he believed lawyers could also benefit from mediation if they were willing to blend into the system. 'They can advise their clients on ways to reach a better agreement, or prepare the written agreement for them.'
Tan said a Taiwanese study on the nation's development in mediation had found that 80 per cent of their lawyers suffered no reduction in income. 
High Court judge Mr Justice Johnson Lam Man-hon  said earlier that the purpose of the civil law system was not to create a meal ticket for lawyers, but to help litigants seek justice in a way that best suited their interests.
Talking it through
The city's first guidelines to promote mediation have come into effect 
The time, in hours, that it can take to resolve with mediation a legal dispute that could otherwise drag on for years: 13



Lawyers fear mediation will curb business