Settling commercial disputes in Hong Kong

Hong Kong is a commercial centre. In the life of a business commercial disputes are bound to happen. Settling these disputes quickly and in a cost efficient manner can make a lot of difference to an entrepreneur, allowing them to focus on their core business activity instead of on legal procédures.

Before resorting to litigation in the courts, the parties in dispute should consider if there is another way to resolve the issues amicably (through alternative dispute resolution procedures such as mediation). Bringing a dispute before the court should be considered as a last resort when all other options have been tried and have failed. While it remains possible for parties to litigation to negotiate an amicable settlement at any stage of the litigation, before the judgment is given, significant costs are likely to have been incurred by then. If despite their best efforts an amicable settlement is not possible, there are two options to consider before commencing commercial litigation.
 
Small Claims Tribunal
 
The Small Claim Tribunal (? SCT ?) offers a fast, efficient and low-cost way to sue and recover small amounts claimed in a commercial dispute. It is relatively easy to start a small claim as the rules and procedures are less strict than before other courts. No legal representation is allowed before the SCT, and any legal costs that are incurred in small claims are not recoverable (even by the winning party).
 
The SCT handles various small claims including debt recovery, service charges, damage to property and/or consumer claims, but does not have jurisdiction to hear claims related to wages, land possession, alimony, libel and slander.
 
Monetary claims before the SCT cannot exceed HKD50,000. Claims in excess of HKD50,000, cannot be divided into several separate claims below the HKD50,000 limit in order to bring it within the SCT limit. However, a claim exceeding HKD50,000 can still be pursued before the SCT, if the excess over HKD 50,000 is abandoned by the claimant. Alternatively, the claimant can pursue a claim in excess of HKD50,000 before the District Court which has jurisdiction subject to an upper limit of  HKD 1 million.
 
In addition to defending the claim made against him, a defendant can pursue a counterclaim against the claimant in respect of certain causes of actions related to the initial claim. Should the counterclaim exceed the monetary limits or otherwise fall outside the scope of the SCT's jurisdiction; the whole case (i.e. claim and counterclaim) will be automatically transferred to the District Court.

Read more about the Small Claim Tribunal and the District Court procedures here: https://mybusiness-asia.com/en/hong-kong/running/settling-commercial-disputes-in-hong-kong

ou en fran?ais ici:https://mybusiness-asia.com/fr/hong-kong/gerer/reglement-des-differends-en-matiere-commerciale-a-hong-kong

Raphael Beaudrey
Rosemont (Hong Kong) Ltd
Unit 1904-5, 135 Bonham Strand Trade Centre,
135 Bonham Strand,
Sheung Wan,
Hong Kong
 [email protected]