Construction Mediation Landscape in the Civil Justice System in Hong Kong

Abstract

Alternative dispute resolution techniques as means to speedily and economically resolve certain types of disputes have been well recognized. In this regard, some jurisdictions have opted to use mandatory adjudication to deal with construction, in particular payment-related disputes. The situation in Hong Kong is a bit different. The Government of the Hong Kong Special Administrative Region aspires to make Hong Kong a hub for arbitration and mediation services for the region. Voluntary mediation has been introduced in the civil procedures rules of the High Court as part of the newly launched Civil Justice Reform. Adverse cost order is used to discourage “refusal to mediate” and “failing to attempt to mediate.” While the new measures that came into effect on April 2, 2009, sound sensible, a better picture on the actual impacts will unfold as more cases reach the Court. Nonetheless, the cost sanction may be able to make the voluntary use of mediation less voluntary.