Source: Hong Kong Information Services
The Law Reform Commission today published a consultation paper to invite views from the public on outcome related fee structures (ORFS) for arbitration.
It recommended that the law in Hong Kong be amended to permit lawyers to use ORFSs for arbitration taking place in and outside Hong Kong.
In its consultation paper, ORFS refers to an agreement between a lawyer and client, whereby the lawyer receives a financial benefit if the case is won. It includes several types of agreements, namely conditional fee agreements, damages-based agreements and hybrid damages-based agreements.
Currently, ORFSs are unlawful for litigation and arbitration proceedings in Hong Kong. However, major arbitral seats permit some form of ORFSs and there is significant and increasing demand from clients for such an arrangement.
The commission’s Outcome Related Fee Structures for Arbitration Subcommittee, which published the consultation paper, said the recommendations aim to preserve and promote Hong Kong as a leading centre for arbitration services, and enable the city to compete with other popular arbitral seats which allow some form of ORFSs.
Views and suggestions can be posted to the subcommittee at 4/F, East Wing, Justice Place, 18 Lower Albert Road, Central.
People can also submit their views by fax to 3918 4096 or by email.
The deadline for submission is March 16, 2021.