New reciprocal enforcement law for Hong Kong, mainland China cross-border civil legal judgments will not damage city businesses’ interests, experts say
- Legal experts say change will reduce costs associated with re-litigation and give better safeguards for cross-border business deals
- New law, to come into force next January, will enable easier enforcement of cross-border court rulings, Hong Kong and mainland-qualified lawyer says
A new law that will allow reciprocal enforcement of court judgments in Hong Kong and mainland China in civil and commercial cases will not damage the interests of businesses based in the city, but will reduce costs involved in re-litigation, legal experts have said.
City lawyers defended the new system on Sunday after Paul Lam Ting-kwok, the justice secretary, acted to clear up confusion over the change.
Tony Au Siu-hong, a Hong Kong lawyer also qualified to practice on the mainland, dismissed claims that the new arrangement would harm the interests of city residents and overseas investors and insisted it would offer better safeguards for cross-border deals.
“For example, if the mainland side breaches a contract and attempts to delay its responsibility, what the Hong Kong side can currently do is limited, even if they win a lawsuit in a mainland court,” he said. “The new regime will change the scene when the relevant judgments can be enforced in Hong Kong.
“Vice versa, it will facilitate those who win in Hong Kong courts to have the judgment enforced on the mainland, if the judgment fulfils the requirements in the registration process.”
Au also emphasised that the changes only covered designated mainland courts, not “any local-level courts where their impartiality can be questioned” and that the safeguards were in line with international practices.