Hong Kong Judiciary issues binding rules making litigation ‘last resort’ for Wang Fuk Court fire claims

Hong Kong’s Judiciary has issued a set of binding procedural rules requiring former residents of the fire-hit Wang Fuk Court to exhaust other options for compensation before formally filing civil claims at the city’s courts as a “last resort.”

The Judiciary said in a Thursday statement that “a large number of claims involving complex issues and substantial sums may soon be brought before the courts” owing to the “extensive casualties and severe damage” caused by the deadly blaze last November.

“Bearing in mind the time, costs and uncertainties involved in litigation,” it said that resolving claims initially through settlement or mediation would serve the interests of the parties and the public, with litigation as a last resort.

The new rules, taking the form of two sets of “Special Practice Notes,” have taken immediate effect, according to the statement.

According to the Judiciary, the practice notes intend to “ensure a fair and proportionate distribution of judicial resources, without impairing the parties’ right to access to court or the right to a fair trial.”

It said that claims arising from the Wang Fuk Court fire should be resolved first by settlement, failing which parties should proceed with alternative dispute resolution methods such as mediation. Litigation should only be a “last resort,” it said.

“The parties shall use their best endeavours and make genuine and bona fide efforts” in the negotiation and dispute resolution processes, while litigation should be commenced “if and only if” those efforts failed to resolve the dispute.

Parties must also explain to the court their reasons for failed mediation and the points of dispute that remain.

If a party bypasses mediation and files a claim directly with the District Court or the Court of First Instance of the High Court, the court may put proceedings on hold for up to six months to allow the parties to attempt mediation.

For Employees’ Compensation claims and cases in the Small Claims Tribunal, proceedings may also be adjourned for about four months to facilitate settlement or mediation.

If those resolution attempts are unsuccessful, hearings will be scheduled within the next six to nine months for Employees’ Compensation and within four months for the Small Claims Tribunal.

Chairman of the Hong Kong Bar Association’s Committee on Mediation Ling Chun-wai told Ming Pao that while the practice notes impose new requirements, they “will not stop you from litigating.”

He was also quoted as saying that it was worth considering whether the right to litigate had been affected, while noting that the new requirements were not overly restrictive, pointing to the wait of at least six months to have a hearing date scheduled under standard civil trial procedures.

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James Lee is a reporter at Hong Kong Free Press with an interest in culture and social issues. He graduated with a bachelor’s degree in English and a minor in Journalism from the Chinese University of Hong Kong, where he witnessed the institution’s transformation over the course of the 2019 extradition bill protests and after the passing of the Beijing-imposed security law.

Since joining HKFP in 2023, he has covered local politics, the city’s housing crisis, as well as landmark court cases including the 47 democrats national security trial. He was previously a reporter at The Standard where he interviewed pro-establishment heavyweights and extensively covered the Covid-19 pandemic and Hong Kong’s political overhauls under the national security law.