Arbitration in Hong Kong

icam.es

Arbitration in Hong Kong

Arbitration in Hong Kong

Lester Huang

President

Law Society of Hong Kong

www.hklawsoc.org.hk


Hong Kong Today

“One One Country, Two Systems” Systems

High Degree of Autonomy

After 1997, Hong Kong continues to be a

common law jurisdiction and its judicial

system is firmly based on the rule of law

administered by an independent judiciary.


The Basic Law

The Basic Law, Hong Kong’s Kong s post-

handover ‘mini mini constitution’, constitution , preserves the

pre-1997 pre 1997 English-based English based common law legal

system. Article 8 provides that the

common law in force in Hong Kong on 30

June 1997 remains in effect.


Hong Kong Today

English and Chinese are both official

languages in the courts.

Independent Legislature and Executive

Independent Courts - The Court of Final

Appeal with judges from other common

law jurisdictions is the highest court in

Hong Kong.


The Legal Profession

Solicitors in Practice 4905

In House 1114

Non Practising 822

Firms 715

Foreign Firms 77

From 62 foreign countries

Foreign Lawyers 1088


The Hong Kong International

Arbitration Centre (HKIAC)

Established in 1985,

independent institution

provides one of the most user friendly

dispute resolution services.

It is the default appointing authority for

arbitrators in Hong Kong, a function that

was previously exercised by the Hong

Kong courts. This has substantially

reduced the cost of default appointments.


The Hong Kong International

Arbitration Centre (HKIAC)

The HKIAC recommends the UNCITRAL

Arbitration Rules as its rules for

international arbitrations and has its own

set of Domestic Arbitration Rules.

The HKIAC will administer arbitrations

(and offer its facilities) to parties who have

chosen to arbitrate under different

institutional or ad hoc arbitrations.


Arbitration in Hong Kong

Parties to arbitration in Hong Kong may be

represented by anyone they choose.

There is no restriction on lawyers or

anyone else from other jurisdictions acting

in Hong Kong as party representatives or

arbitrators in arbitrations


International Chamber of

Commerce (ICC)

In 2008, ICC will set up the Asian Branch

of the Secretariat of its International Court

of Arbitration (one of the world’s world s top

international dispute resolution institutions)

in Hong Kong. A case management team

will be based in Hong Kong to administer

cases in the region under the ICC Rules of

Arbitration.


Hong Kong Courts

The Hong Kong courts are supportive of

arbitration and recognise the importance

of non-interference non interference in the arbitration

process.

The Courts are generally pro-enforcement

pro enforcement

of the New York Convention arbitration

awards.


The New York Convention

In Hong Kong, the 1958 New York

Convention on the Recognition and

Enforcement of Foreign Arbitral Awards

(“Convention Convention Awards”) Awards ) applies– applies before

1997 through the UK as the Contracting

State; and after 1997 through PRC as the

Contracting State.


Hong Kong and China

The New York Convention cannot apply

Enforcement of PRC awards in Hong Kong and

Hong Kong awards in the PRC governed by the

“Memorandum Memorandum of Understanding on the

Arrangement between the Mainland and the

Hong Kong Special Administrative Region on the

Mutual Enforcement of Arbitration Awards”. Awards .

This arrangement is similar to the New York

Convention and was implemented in Hong Kong

by the Arbitration (Amendment) Ordinance 2000.


Statistics

Organisation 2000 2001 2002 2003 2004 2005 2006 2007

AAA 510 649 672 646 614 580 586 621

CIETAC 543 731* 684* 709* 850* 979* 981* 429

HKIAC 298 307 320 287 280 281 394 448

ICC 541 566* 593* 580* 561* 521* 593* 599*

JCAA 10 17 9 14 21 11 11 15

KCAB 40 65 47 38 46 53 47 59

KLRCA 11 1 2 4 3 6 1 2

LCIA 81* 71* 88* 104* 87* 118* 130 137

SIAC 83 99 114 100 129 103 119 119

SCC 73 74 55 82 50 56 141 87

VANCOUVER 88* 88* 71* 76* 84* 77* 4 3

VIENNA 100 100 33 45 50 55 N/A 40

Statistics including domestic as well as international arbitrations

13


Arbitration in Hong Kong & Mainland

China since September 1996

CIETAC HKIAC Total

1996 778 197 975

1997 723 218 941

1998 645 240 885

1999 609 257 866

2000 543 298 841

2001 731 307 1,038

2002 684 320 1,004

2003 709 287 996

2004 850 280 1,130

2005 979 281 1,260

2006 981 394 1,375

2007

1118

448

1566


Types of Disputes

The use of arbitration in Hong Kong

has expanded very considerably over

the last fifteen years.

The most commonly arbitrated

disputes are those in the construction

industry followed by general

commercial, shipping and rent review

arbitrations.


Year 2003 2004 2005 2006 2007 Total

Commercial 80 87 98 102 103 944

Construction 137 127 104 181 183 1,865

Joint

Venture

7 0 0 0 0 32

Shipping 28 25 48 18 27 320

Others/

Unclassified

35 41 31 93 0 415

Total 289 280 281 394 313 3,578


Hong Kong Today

418 practitioners were identified in 55

jurisdictions, of which 21 leading arbitrators

of the world came from Hong Kong.

International arbitration require particular

expertise, such as arbitration of insurance,

construction and investment disputes with

countries.

4 Universities provide Arbitration training in

Hong Kong

17


Why Arbitrate in Hong Kong

The World’s World s Freest Economy

The Rule of Law

A Free and Open Society

Accountable Government

International Business Hub

International Financial Centre

18


Why Arbitrate in Hong Kong

International Arbitration and Dispute

Resolution Centre

Update Arbitration Law

Available Expertise

There is no restriction on Lawyers

and anyone else from other

jurisdictions acting in Hong Kong as

representatives or arbitrators in

arbitration.

19


Thank You

Lester Huang JP

President

Law Society of Hong Kong

president@hklawsoc.org.hk

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