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Hong Kong: Views sought on arbitration fees


Hong Kong: Views sought on arbitration fees
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. ....

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