Catherine Wu的部落格

INTRODUCTION TO LEGAL ACTION IN HONG KONG

The cost of legal action depends on the background and complexity of the case and whether debtor is defending. Lawyers (solicitors in Hong Kong) normally require deposit of not less than HK$20,000 (around US$2,600) deposit (for costs on account) for the disbursements and fees to be incurred and deducted prior to proceeding of any litigations.  Further deposit will be requested whenever required.

Legal action normally takes considerable time and creditor may or may not be required to attend the court hearing. Debtor (debtor's lawyer) may also request creditor (the plaintiff) to lodge a guarantee (as a protection to debtor in case creditor/plaintiff loses the case) so client should also be prepared for this. 

As mentioned earlier, it is possible that creditor has to attend (or appoint someone as contingent to whether the court accepts or not) the court hearing, especially when debtor is contesting/defending the case.

In Hong Kong, after a judgement is awarded in favour of creditor/plaintiff, certain percentage of creditor’s incurred legal costs and fees may be adjudicated by the court to be as paid by debtor. The creditor/plaintiff can pursue further by petitioning for winding up (against a limited company) or bankruptcy (against an individual) if debtor is not fulfilling the awarded judgement. The recoverability of winding up or bankruptcy petitions is contingent to whether debtor possesses any assets (cash, property, stocks and shares etc.), which are suggested to be traced/investigated prior to commencement of winding up or bankruptcy petitions.

Solicitors’ (lawyers) Charges and Notes: (For reference only, updated on 6^th March 2006, which are subject to charge without notice)

1. Retainer

Solicitors take instructions direct from client/creditor who will be commencing legal actions against its debtor/others for damages and/or other related legal works incurred in connection therewith;

2. Handling Solicitors / Staff

Lawyers and legal staff of suitable seniority will perform the various legal works involved in different stages but at all times all lawyers and legal staff will be appropriately supervised;

         3. Fees

Charges are based on a number of factors such as the complexity and difficulty, specialized knowledge, experience, expertise and the amount of documentation involved and

the urgency with which solicitors are required to work and undertake. The key factor will count on time spent. The discounted hourly rates are as follow: -

Position                                                                                                        HK$ / Hour

Solicitor                                                                                                            2,200.00

Trainer Solicitor                                                                                               1,600.00

Legal Executive                                                                                               1,200.00

Litigation Clerk                                                                                                   800.00

4. Counsel and/or Legal Adviser or Expert

On some legal work, which may require Counsel and/or Legal Adviser or Expert to be retained on client/creditor’s behalf, their fees will be charged separately as disbursements with

client/creditor’s prior approval before engagement.

5. Disbursements

Disbursements such as court fees, search fees, travelling expenses, international calls and faxes, photocopying & postage as well as Counsel’s fees or Experts or other

expenses all related and necessary for handling the case will be charged separately and in addition to solicitors costs.

6. Costs on account / Billings

Sufficient deposit of costs on account will be required from client/creditor’s to defray solicitors necessary expenses during handling client/creditor’s cases. Solicitors render interim

bills on a regular and monthly basis and client/creditor agree to settle interim bills and/or any other bills within 15 days upon presentation or from deduction of the deposit of costs on

account thereof.

7. Termination of Retainer

Solicitors will try their best and endeavour to check and avoid any conflict of interest arising from any present or previous relationship with their clients. This retainer does not

constitute an entire contract and therefore that solicitors reserve their rights to terminate and withdraw their services and representation at any time by either party upon written

notice, in particular if you fail to adopt or follow solicitors’ advice which render solicitors’ continuing representation unlawful and unethical or without trust between solicitors and

client/creditor.