Resolving disputes through the court system can be very costly, unpredictable, emotionally draining and time consuming. It also does not come without risks. Before embarking in civil litigation, it is important to understand the process in Hong Kong and what it is likely to entail.

Explore ADRs first: before commencing formal legal proceedings, parties should explore alternative dispute resolution (ADR) means such as mediation – whereby a mediator is used to negotiate and settle the dispute – or arbitration – often used in commercial disputes with an arbitrator as the facilitator. Both alternative routes are typically quicker and cheaper than litigation so are worth considering.

Commencing formal legal action: if alternative resolution methods have been unsuccessful, parties will proceed to initiate formal legal action with the plaintiff suing the defendant. Here, the plaintiff issues and serves a writ of summons or originating summons on the defendant at the appropriate court. The defendant then has 14 days to acknowledge service and give notice of intention to defend the claim. If the defendant intends to defend the claim, a defence must be filed and served within 28 days.

The three courts in Hong Kong: there are three main civil courts in Hong Kong – the District Court, the High Court (including the Court of First Instance and the Court of Appeal) and the Court of Final Appeal.  The District Court handles smaller civil claims between HK$75,000 and HK$3 million, and includes the Family Court, though has limited jurisdiction. The High Court and Court of Final Appeal have unlimited jurisdiction over civil cases and can hear all claims which fall outside the District Court. There are also several tribunals in Hong Kong to be aware of including the Small Claims Tribunal, the Lands Tribunal and the Labour Tribunal.

Pleadings and case management: after the defendant has filed a statement of defence the court will likely hold case management meetings to facilitate the efficient management of the case. Here, timelines will be set and discussions around settlement may be raised – parties are always encouraged to settle the dispute between themselves instead of proceeding to a full trial. 

Discovery and evidence: discovery involves the exchange of relevant documents between parties of the litigation. Each party must disclose documents that are material to the case even if they are unfavourable. Parties may also be required to provide sworn witness statements to give oral evidence. 

Trial: evidence is typically given at trial with witnesses attending to prove all the facts of their statements. The opposing party can cross-examine the witness and experts are sometimes called to give oral evidence too.

Judgments: the judge will deliver a judgment at the end of a trial outlining the court’s decision and why it was reached. Depending on the specifics of the case, the court may use its wide powers to grant a range of remedies including:

• Security for costs;
• Damages – which are generally compensatory under Hong Kong law; or 
• An injunction – where it is just and convenient to do so, including interim injunctions, interim payments and Anton Piller orders. 

If parties are not happy with the judgment, they have the right to appeal to a higher court. 

Judgments are enforceable in most common law jurisdictions and in a handful of other countries such as the Netherlands, Belgium and Germany pursuant to international agreements by registration under the Foreign Judgment Enforcement Ordinance (Cap. 319). The enforcement of PRC judgments was given effect by the new Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645) which implements the ‘Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by Courts of the Mainland and of the Hong Kong Special Administrative Region’ signed on 18th January 2019. 


Enforcement: once a judgment has been made, the successful party may need to explore enforcement actions if the other party isn’t complying. These mechanisms can include Garnishee Proceedings and Writ of Execution and FIFA. 

Final Considerations: the civil litigation process in Hong Kong offers a structured framework for resolving disputes. There are, however, time limits governed by the Limitation Ordinance (Cap. 347) and parties should be aware of when bringing civil claims, such as: 


• actions to recover land: 12 years from the date when the right accrued (60 years if the claim is brought by the government);
• contract: 6 years from the date of breach;
• deeds: 12 years from the date of breach;
• fraudulent breach of trust: no limitation period; and
• tort: 6 years from either the date of the wrongful act or when damage occurs as a result of the wrongful act.


Navigating the litigation process from start to finish with experienced lawyers on hand can help parties achieve favourable results. Get in touch with our Civil Litigation lawyers to find out more about how we may be able to support you.

Glossary


• Anton Piller order: this is also known as a search order and is a court order which permits inspection of the defendant or respondent’s premises and civil search for and seizure of relevant materials and documents.
• Default judgment: this is a judgment without a trial.
• Enforcement: the action of compelling a party to comply with a judgment where it has not been complied with voluntarily and the time ordered for compliance has expired. 
• Garnishee proceedings: this can be a powerful tool for debt collection and allows for the collection of funds owed without going through long legal proceedings. It is a court order to a third party who owes money to a judgment debtor to pay money to the judgment creditor.
• Injunction: this is a court order, usually one telling someone not to do something. 
• Judgment: this means the decision made by a court or tribunal.
• Seizure of assets: this is when a person is no longer allowed to use a particular asset, such as when the money in their bank account is frozen.
• Summary judgment: this is a judgment that allows the plaintiff to obtain judgment without the delay and expense of a full trial.