Class action lawsuits not suited to Hong Kong

It is argued by some that Hong Kong needs a class action system, which will give people better access to justice and consumers a fairer share of settlements. And the argument is made, of course, that other jurisdictions have, or are introducing, class action, so why not Hong Kong?

This argument may sound attractive in principle. However, there is a real risk that, in the zeal to expand opportunities for private litigation, we will open a Pandora's box of litigation abuse and move to a legal system that is less fair, less accessible and which makes it harder for meritorious claims to be heard, because the courts are clogged with claims motivated by class action lawyers seeking to make a quick buck.

There are different ways to structure a class action system, but in a nutshell it allows a named plaintiff or a number of named plaintiffs to file a claim on behalf of a "class" of people or businesses who claim to have suffered a common injury.

The plaintiffs get their "class" certified by the court and they are then able to sue not only on their own behalf, but also on behalf of all other people in that class.

A closer look at how they have worked in the US, which opened the door to class action many decades ago and which is now well known for its litigious excesses, might give us cause to look more critically at the costs, the potential pitfalls and who really benefits.