Let lawyers keep as much as half of arbitration awards to ensure Hong Kong remains hub for dispute resolution, reform body says
- A number of major jurisdictions allow lawyers to link their fees with amount awarded in arbitration cases, but not Hong Kong
- Adding flexibility to the payment structure not only helps the city stay competitive but also allows residents who cannot afford hourly legal fees greater access to justice, experts note
Hong Kong lawyers handling arbitration cases should be allowed to receive up to half of the money awarded to their clients, an independent law reform commission has suggested, saying doing so would help maintain the city’s status as an international hub for dispute resolution.
In a report released on Wednesday, the Law Reform Commission recommended permitting lawyers to discuss payment options with clients and tying the amount to the outcome of the case.
Chan Chak-ming, a member of the subcommittee that produced the report, said a number of major jurisdictions allowed such a practice but not Hong Kong or Singapore, which was already planning to amend its relevant law to make it a possibility.
“It is very important for Hong Kong’s overall competitiveness in arbitration,” he said.
“It is not a reward for the legal profession nor for the lawyers to make more money, but for the purpose of raising the overall level of service and protecting the rights of the public.”