Tai Po fire claims: Hong Kong judiciary urges mediation before court action

A potential wave of claims could arise from last year’s deadly Tai Po fire, Hong Kong’s judiciary has warned, urging parties to settle their disputes through mediation or other forms of alternative resolution, with litigation as a last resort.

The judiciary issued two special practice notes on Thursday, one covering all civil claims arising from the Wang Fuk Court fire and the other for employees’ compensation claims. They aim to ensure a “fair and proportionate distribution of judicial resources” without impairing the parties’ rights.

The inferno, which broke out almost a year ago, on November 26, as the Wang Fuk Court housing estate was undergoing extensive renovations, killed 168 people, including a firefighter, and displaced almost 5,000 residents.

“Taking into account the extensive casualties and severe damage caused by the fire, the judiciary anticipates that a large number of claims involving complex issues and substantial sums may soon be brought before the courts,” it said.

“Bearing in mind the time, costs and uncertainties involved in litigation, it is in the interests of the parties and the public that these claims be resolved initially by settlement through without-prejudice negotiations, and failing which, by alternative dispute resolution including mediation, with litigation as the last resort.”

The High Court or the District Court will deal with all civil claims, except for certain specified types. Employees’ compensation claims will be handled by the District Court, the Small Claims Tribunal or the Labour Tribunal.

For all civil claims, proceedings should only be commenced if genuine attempts have been made by alternatives such as mediation, but have failed to resolve the dispute in whole or in part within six months, or any further time as agreed.

Non-compliance may cause the court to order an interim stay of proceedings for no more than six months, to allow the parties to attempt to resolve the dispute by alternative dispute resolution arrangements.

For employees’ compensation claims, the first hearing will be held within two months of the date of application.

The judge will give appropriate directions at the first hearing to facilitate settlement, including alternative dispute resolution arrangements, and to ensure expedient progress of the proceedings.