The Law Reform Commission of Hong Kong today published a report recommending that Hong Kong allow lawyers to charge success fees for arbitrations. The LRC report, entitled “Outcome Related Fee Structures for Arbitration”, proposes changing Hong Kong law to lift longstanding prohibitions on such fees, which are widely used in other arbitral seats.
The report follows a study by the LRC’s Outcome Related Fee Structures for Arbitration Sub-committee, co-chaired by Kathryn Sanger and Briana Young of Herbert Smith Freehills. Following a public consultation that overwhelmingly supported reform, the LRC recommends permitting conditional fee agreements (CFAs), damages based agreements (DBAs), and so-called “Hybrid DBAs” – which combine elements of CFAs and DBAs. The report also makes recommendations for appropriate regulation and safeguards. If the proposals are adopted, lawyers in and outside Hong Kong – and their clients – will benefit from one of the world’s broadest success fee regimes for arbitration and related court proceedings. The proposals do not relate to any other proceedings.
The LRC’s full press release is available here.
For further information, please contact:
Briana Young, Partner, Herbert Smith Freehills
Briana.Young@hsf.com
