Danny McFadden on the increasing popularity of mediation in Hong Kong
A recent global survey of general counsel has found that nearly half of respondents believe that mediation will grow significantly ahead of litigation in the Asia Pacific region, with Hong Kong uniquely placed at the forefront of that trend.
Possibly not surprising given that, in June 2012, Hong Kong enshrined mediation’s status in law—the Mediation Ordinance—meaning that in Hong Kong, mediation is regulated by statute. This marks a departure from mediation practice in many other jurisdictions, where regulation is less formal and remains within the scope of the industry, rather than drawing on the instruments of government. The Mediation Ordinance formalises aspects of the process, such as the confidentiality of mediation communications, but also seems to fulfil a “signalling” process. The ordinance speaks to international disputants, offering reassurance that Hong Kong offers a fair and open theatre to those seeking mediation there.
There are three main reasons why the use of mediation has grown so enthusiastically in Hong Kong;
- It is part of a growing regional, and indeed global, trend for settling disputes
