Many of my fellow lawyers and friends back in Mainland China complained that their clients are unable to commence proceedings in Hong Kong, as it is very costly to do so in Hong Kong. Given how the exact litigation costs cannot be estimated, the recent case of Rafael Hui Si-yan saw legal fees totaling HK$1.2 billion for merely the first instance hearing. So, is it really that costly to commence proceedings in Hong Kong? This may not be always true.

First, Hong Kong courts only require one to pay a fixed amount for registration of the originating process, for example, the aforesaid registration fee in High Court is HK$1,045, regardless of the claim of the case. Thus, a large proportion of the litigation cost will be the lawyers’ fees. However, following the principle of “costs follow the event”, it should not be a concern if one has sufficient grounds and enforceable assets, as the lawyers’ fees will need to be borne by the losing party. This principle aiming to achieve fairness is also followed by the UK. This is, however, not the same for mainland China. Without prior explicit agreements, the parties will usually bear their own costs. It is therefore recommended to proceed with proceedings if there is sufficient grounds and enforceable assets. The Plaintiff in such a case is only paying the fees in advance, the court will normally order the losing party to bear the majority or even the whole litigation costs incurred.

Since every case is unique and the common law rules on a case-by-case basis, this article should only be used as a reference but not as any legal advice for any case. Please contact and consult Mr. Zhang Yuanhong, practicing solicitor in Hong Kong, for professional legal advice if you need further assistance.

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