On 15 January 2016, our partners Mr. Eric Lui, Ms. Heidi Chui, associate Ms. Karman Fung and trainee solicitor Mr. Jensen Chang delivered a seminar on the Competition Ordinance (Cap. 619) at the Hong Kong branch of China Everbright Bank. Our team explained how the Ordinance, which came into force on 14 December 2015, may impact the banking industry.

In relation to the First Conduct Rule which covers agreements and concerted practices between undertakings, our speakers explained to the participants that common banking practices which were lawful in the past may now violate the law, in particular the exchange of strategic business information with other banks. In light of the suspension by the Hong Kong Association of Banks of certain sections of the Code of Banking Practice, our team analysed why they may potentially be caught by the First Conduct Rule as well as the possible effect of the suspension on the concerned banking services.

The application of the Second Conduct Rule to the banking industry was also addressed. Examples of the enforcement dimension of the Ordinance, including dawn raids, the leniency policy and actions bankers should take in order to avoid violation of competition law were given.

During the seminar, participants raised questions and engaged in enthusiastic discussions regarding exchange of information with competitors and powers of the Competition Commission.

Photograph of Mr. Lui (second from left), Ms. Chui (second from right), Ms. Fung (on the right), Mr. Chang (on the left), and Mr. Zachary Xin (in the middle), Head of Legal and Director, Hong Kong branch of China Everbright Bank

Contact persons: Mr. Eric Lui, Ms. Heidi Chui

In Wu Yim Kwong Kingwind v Manhood Development Ltd [2015] HKEC 1475, the Court imposed an adverse costs order against a party for its unreasonable refusal to attempt mediation.

The plaintiff (“P”), losing the trial, was ordered to pay 80% of the costs of the defendant (“D”). P sought to vary the costs order for the reason that D unreasonably refused to mediate.

D argued that since the subject matter of the dispute was land, it was impossible for them to compromise. Further, it was argued that P was not cooperative in agreeing on costs related to the interlocutory proceedings and had not made any settlement offer.

The Court held in favour of P and made an adverse costs order against D. The Court did not see the nature of the claim being land would keep the parties from compromising. Despite P being uncooperative, it did not mean that D could be the same. Further, even though P did not make any settlement offer, negotiation should be mutual and it was found that D did not make any offer either. Lastly, the Court pointed out that negotiations should not be seen as a replacement for mediation.

This decision indicates what the Court considers to be unreasonable excuses to refuse mediation and the possible consequences of such unreasonable refusals regardless of winning or losing at the trial.

Our partners Mr. Eric Lui and Ms. Heidi Chui have been appointed by the Ministry of Justice P.R.C. (the “MOJ”) as part of the 11th batch of China Appointed Attesting Officers and attended the awards ceremony organized by the MOJ held at Zhuhai Holiday Resort Hotel on 7 January 2016.

Newly appointed Attesting Officers were greeted by Mr. Zhao Dacheng, Vice Minister of the MOJ, as well as other representatives from relevant departments and were presented with their certificates of appointment.

Mr. Lui and Ms. Chui with their certificates of appointment

Following the ceremony, the newly appointed Attesting Officers attended a gala luncheon organized by the MOJ.