24 Dec 2018

Issuance of the Code of Practice for Third Party Funding of Arbitration

As the most recognized international arbitration center in the Asia Pacific region, Hong Kong has long maintained a positive and open attitude towards its development of the arbitration system and the recognition and enforcement of arbitral awards.

With the amendment of the Arbitration Ordinance (Cap. 609) (hereinafter referred to as the “Ordinance”) in Hong Kong in 2017, the Code of Practice for Third Party Funding of Arbitration (hereinafter referred to as the “Code of Practice”) pursuant to Division 4 of Part 10A of the Ordinance has been issued in December 2018. The law that allows third party funding of arbitrations will come into effect on 1 February 2019.

Important amendments brought by the newly amended Ordinance

Previously, with respect to third party funding of litigation or arbitration, the common law principles of maintenance and champerty apply. A party with no legitimate interest in the proceedings may not engage in funding the parties to the proceedings in return for a share in any award or settlement (e.g. no-win-no-fee arrangement). Such third party may be criminally liable.

The newly revised Arbitration Ordinance has lifted restrictions on third party funding of arbitration. Not only may a third party funder provide financial assistance in relation to the cost of the arbitration, claimants and respondents in arbitration may also enter into more flexible agreements with their solicitors. Although the funder bears the risk of receiving a financial benefit only if the arbitration is successful, it is a reduced financial risk to the funded party when pursuing a claim.

The conditions to third party funding of arbitration under the Ordinance are briefly summarized as follows:

(1) funding by a body without an interest recognized by law in the arbitration (other than under the funding agreement);

(2) of a party (or prospective party’s) costs and expenses of an arbitration;

(3) in return for a share of the proceeds from the arbitration if it is successful (as defined in the funding agreement).

Code of Practice

The Code of Practice was issued pursuant to Division 4 of Part 10A of the Ordinance. The Code of Practice sets out a clear and complete set of practices and standards for third party funding of arbitration, governing the funding agreement and the responsibilities of the contracting parties, for example:-

(1) the funding agreement: to be confirmed by the funded party in writing to the third party funder, that the funded party has taken independent legal advice provided by the third party funder;

(2) capital adequacy requirements of third party funders: the third party funder must ensure that it maintains the capacity to cover its funding liabilities for a minimum of 36 months and maintain a minimum of HK$20 million of capital;

(3) conflicts of interest: the third party funder must carefully manage their conflicts of interest under the funding agreement;

(4) control of arbitration: the arbitration shall be controlled by the funded party or the funded party’s legal representative, and the third party funder shall not influence or cause the funded party’s legal representative to act in breach of professional duties;

(5) liability of adverse costs: the funding agreement must clearly state whether the third party funder is liable to the funded party to meet any liability for adverse costs;

(6) termination of the funding agreement: the funding agreement must clearly state the grounds for termination.

The Code of Practice serves as a guide and standard when entering into a funding agreement. Failure to comply with the Code of Practice does not of itself render any person liable to judicial proceedings, but may be taken into account as admissible evidence in future legal proceedings.

Please contact our Head of Litigation and Disputes Resolution Ms. Heidi Chui heidichui.office@sw-hk.com for any enquiries or further information about this update.

24 Dec 2018

(中文) 史蒂文生黄合伙人徐凯怡律师获颁深圳国际仲裁院仲裁员聘书

(中文) 2018年12月23日,史蒂文生黄律师事务所合伙人、诉讼及争议解决部门主管徐凯怡律师获颁深圳国际仲裁院仲裁员聘书,于其2019版《仲裁规则》发布会暨仲裁员培训交流会中与来自境内外近400名仲裁员互相交流。

深圳国际仲裁院理事会及其仲裁员资格审查与操守考察委员会接获近80个国家/地区的数千名申请人,经过多轮审议,最终通过《深圳国际仲裁院仲裁员名册》,共890名仲裁员。本所合伙人徐凯怡律师、锦天城律师事务所顾功耘主任、刘炯律师、江定航律师、高田律师、李立坤律师、黄思周律师及黄海律师也是名册成员之一。

深圳国际仲裁院理事郭晓文于发布会中表示深圳国际仲裁院的境外仲裁员占比高于40%,结构进一步国际化,有利于共建国际商事争端解决机制,促进「一带一路」营商环境建设。

想了解更多信息,请联络徐凯怡律师

21 Dec 2018

Stevenson, Wong & Co. Signed the Mediate First Pledge

A “Mediate First” Pledge campaign was launched in May 2009 with more than 460 companies and trade organisations pledging to consider the use of mediation first before resorting to other means of dispute resolution. Stevenson, Wong & Co. was one of the first organizations to sign the “Mediate First” Pledge. We are committed to first explore the use of mediation in resolving disputes.

In May of this year, the Department of Justice organized Mediation Week 2018. The theme was “Mediate First-Exploring New Horizons”. It sought to look ahead at future developments including online dispute resolution and the use of mediation in resolving international commercial disputes.

There are 3 accredited Mediators in our firm. Ms. Catherine Por and Ms. Sherlynn Chan are Accredited Family Mediators. Ms. Heidi Chui is an accredited mediator of Hong Kong International Arbitration Centre, The Law Society of Hong Kong and a Panel Mediator for Buildings Management Cases of the Lands Tribunal.

Should you have any queries in connection with mediation, please contact Ms. Catherine Por.

20 Dec 2018

Stevenson, Wong & Co.’s Family Practice was recognized by Chambers Asia Pacific, Lawyer Monthly and Corporate INTL

In the newly published edition of Chambers Asia Pacific 2019, the Family Practice of Stevenson, Wong & Co. has been recognized as “Band 3 Law Firm” and our partner Ms. Catherine Por has been recognized as “Band 2 Lawyer” in the category of “Family/Matrimonial (International Firms). In addition, the Family Practice has been selected as the winner of “Family – Law Firm of the Year – Hong Kong” in Lawyer Monthly and “Family Mediation Law Firm of the Year in Hong Kong 2019” in 2019 Corporate INTL Global Awards.

Catherine heads the Family Law Practice in the firm. She specializes in all aspects of family law disputes, and has extensive experience in complex financial claims, intervener proceedings, financial claims under Part IIA of the Matrimonial Proceedings and Property Ordinance (Chapter 192), Child Abduction cases, relocation of children cases, claims under the Guardianship of Minors Ordinance (Chapter 13), custody cases, pre-nuptial and post-nuptial agreements, contentious and non-contentious trust cases, contentious estate matters; cross border issues and enforcement proceedings. She has also provided legal opinions on Hong Kong Family Law. Catherine is an Accredited General and Family Mediator, Fellow of the Chartered Institute of Arbitrators and is a Notary Public and Civil Celebrant of Marriages.

Stevenson, Wong & Co. has one of the leading family law practices in Hong Kong. The practice has grown and become a significant part of a developing Private Client department which uniquely also provides wealth protection and succession planning, estates and trusts, Committee work, wealth and asset management, all under one roof. Our teams are dedicated and aim to provide effective and practical solutions and support to people going through changes in their family circumstances. We also deal with cases with international and PRC elements, whether they relate to children or finances.

Please contact Ms. Catherine Por for any enquiries or further information.

17 Dec 2018

Stevenson, Wong & Co. represents the cornerstone investor of the listing of Luzhou City Commercial Bank on the Main Board of The Stock Exchange of Hong Kong Limited (“IPO”)

On 17 December 2018, Luzhou City Commercial Bank (泸州市商业银行) (“Luzhou Bank”) was today listed on the Main Board of the The Stock Exchange of Hong Kong Limited. Luzhou Bank is the largest commercial bank in Luzhou City, Sichuan Province.

Stevenson, Wong & Co. was the Hong Kong legal advisor to one of the top three cornerstone investors (i.e. Luzhou Liquor Golden Triangle Wine Industry Development Co., Ltd. (泸州白酒金三角酒业发展有限公司)) of the IPO.

Mr. Hank Lo, our head of corporate finance, together with Mr. Gordon Tsang, provided professional legal services for the IPO.

Please contact Mr. Hank Lo or Mr. Gordon Tsang for any enquiries or further information about the IPO.

14 Dec 2018

Stevenson, Wong & Co. Partner Ms. Heidi Chui Appointed as a Panel of Arbitrator of the Shenzhen Court of International Arbitration (“SCIA”)

Stevenson, Wong & Co. is delighted to announce that our Partner Ms. Heidi Chui has been appointed by the Shenzhen Court of International Arbitration (“SCIA”) as a panel arbitrator for a term of three years.

After a preliminary examination by the Council of SCIA and comprehensive consideration of their professional expertise, SAIC finally selected the new Panel of Arbitrators.

Ms. Heidi Chui is an Arbitrator, Fellow of the Chartered Institute of Arbitrators (U.K.) and Accredited General Mediator with both the Hong Kong International Arbitration Centre and the Law Society of Hong Kong. She is also a member of the Arbitration Committee of The Law Society of Hong Kong and a China Appointed Attesting Officer. She has been appointed as an Expert on the professional Committee on Real Estate Arbitration of China Academy of Arbitration Law, a Practising Solicitor Member of the Solicitors Disciplinary Tribunal Panel and a member of Disciplinary Panel A of the Hong Kong Institute of Certified Public Accountants, Lay Assessor of the Medical Council of Hong Kong, Panel Adviser to the Film Censorship Authority, Adjudicator of the Immigration Tribunal and Chairman of Appeal Tribunal Panel (Buildings).

Please contact Ms. Heidi Chui for any enquiries or further information.