Hong Kong Arbitration Lawyer: Why Choose Arbitration as a Method of Dispute Resolution?
Advantages of choosing arbitration as a means of dispute resolution
– Neutrality of Arbitration
If one of the parties to a transaction is a Mainland Chinese merchant, litigation in a Chinese court is of course the preferred option for the Chinese party. However, the foreign party to the transaction is not familiar with the Chinese legal system and often does not like it. Arbitration is better than litigation to satisfy the desire of both parties to choose a neutral place to resolve their disputes.
– Professionalism of Arbitration
Arbitration is more suitable for resolving cases involving professional issues. In arbitration, choosing an arbitrator who has a certain background in the relevant industry or professional field, and who understands both the technical and practical business background, can resolve disputes more quickly and effectively than in litigation.
– Confidentiality of Arbitration
Unlike court proceedings, arbitration is conducted ‘behind closed doors’. The arbitration process is usually confidential, and the arbitral award cannot be made public without the consent of the parties. Therefore, the parties’ business operations and trade secrets will not be disclosed to the public.
– Finality of Arbitration
Arbitration is usually final and the parties cannot apply for review or sue on substantive issues. Therefore, by submitting a dispute to arbitration, you can avoid being involved in litigation for years due to lengthy litigation and appeal procedures.
– No Mandatory Legal Representation
In arbitration, the parties are not obliged to appoint a solicitor or barrister to represent them. The parties can appoint a lawyer from their own country or a foreign lawyer, or even a technical adviser rather than a lawyer.
– Fast and Low Cost
Because of the flexibility of the arbitration process and the flexibility of the arbitral awards, arbitration can save a great deal of time and money. Overall, arbitration is faster and cheaper than litigation in the courts.
– Broad Enforceability
China is a member of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the ‘New York Convention’), which has been extended to Hong Kong since 1997. Members of the New York Convention are obliged to enforce arbitral awards made in other member states and cannot review the merits of the arbitration.
Hong Kong Arbitration Lawyers: Why Hong Kong Arbitration?
Hong Kong is a major financial and business center in Asia. Hong Kong is easily accessible; it has a large pool of highly qualified professionals, such as lawyers, accountants, translators, and technical experts, who can provide services in international arbitrations; it has a well-developed legal system, including an arbitration legal system; and arbitral awards in Hong Kong can be enforced in other treaty member states under the New York Convention and in Mainland China under a judicial agreement with Mainland China. Arbitral awards in Hong Kong can be enforced in other treaty member states under the New York Convention and in Mainland China under a judicial agreement with Mainland China.
Therefore, arbitration in Hong Kong is a recommended means of dispute resolution in international commercial transactions.
(Bob Yan, principal solicitor of Yan Lawyers, solicitors. Email: [email protected], Tel: +852 31881995, +86 15018939249, WhatsApp: +852 5103 9249)