Much research has been done in many countries around the world, but litigation is generally viewed as expensive, time consuming and adversarial. There is support for mediation because it is typically less expensive, quicker and more constructive.
The Hong Kong Government has taken various steps to encourage parties in disputes to use litigation. They have introduced a new Mediation Ordinance (Cap. 620) which provides a statutory basis for mediation and its’ confidentiality. In addition, the Hong Kong Government has created a ‘mediate first pledge’ campaign which encourages companies to sign up to a pledge that they will consider and attempt mediation for their disputes before other steps are taken.
In addition, given the aftermath of the Lehman crisis, the Hong Kong Government has set up with the HKMA and SFC, the Financial Dispute Resolution Centre. The FDRC assists parties with a limited range of financial disputes, which meet their strict criteria.
The Hong Kong judiciary conducted a huge review of civil justice in Hong Kong, which resulted in a series of reforms known as CJR (Civil Justice Reform). One of the key reforms is known to lawyers as Practice Direction 31. Practice Directions provide guidance to lawyers and parties from the judges as to how they will manage cases. Practice Direction 31 requires lawyers and parties to consider mediation as they prepare their case for trial.