Interim Report, Table of Contents Start of this Section Previous Page Next Page Next Section Civil Justice Reform - Interim Report About CJR Citator



D3. Evidence of the expense of litigating in Hong Kong

52. As indicated above, it is difficult to assess how accurate or reliable the perceptions commonly reported in the media are. Hard evidence of the cost of litigation is difficult to come by. The difficulty is not solved simply by asking lawyers how much they charge since the responses may not be meaningful unless accompanied by details of cases which are subject to client confidentiality or legal professional privilege. Thus, it is not a good indication to be told that a partner in a solicitor's firm charges $x per hour or that an associate charges $y, since the impact of such charges cannot be assessed without knowing how many chargeable hours are claimed, and at what professional level, for a particular case of a known weight and complexity - matters likely to be confidential.
53. Quite apart from such objections of principle, lawyers may be reluctant to disclose such information on personal or other grounds, such as fear of losing out to an under-cutting competitor or, conversely, being seen to command excessively low fees.
54. While the fact that litigation in Hong Kong is perceived to involve excessive cost is unquestionable, that perception tends very much to be based on anecdote. But anecdotes tend to relate to extreme cases with a "shock" value. They therefore cannot be taken alone as a reliable measure of overall costs. Nevertheless, the persistence of published disquiet over high fees, even anecdotally, can perhaps be treated as a broad indication that fees are in many cases considered unacceptably high by users of legal services.
55. One of the "hardest" indications of fees recently published is in the answer given by the Secretary for Justice, Ms Elsie Leung, in the Legislative Council on 9 June 1999. It was given in response to a question tabled by the Hon Yeung Yiu-chung, the relevant part of which was in the following terms :-
"Regarding the quality and number of practising solicitors and barristers in Hong Kong as well as the fees they charge, will the Government inform this Council if it knows: ...... the respective numbers of cases in which the public hired practising solicitors and barristers in the past year, together with the respective highest, lowest and average amounts of fees charged in those cases; how the respective average fees compare with those charged by their counterparts in South Africa and the United Kingdom "
The relevant part of Ms Leung's response was :-
"I am advised that the Law Society does not have any record as to 'the highest, lowest and average amounts of fees charged' by solicitors.
...... A recent survey of the fees of Senior Counsel conducted by the Bar Association indicates that the majority of those who responded (72.7%) charge a daily fee of $40,000 to $60,000, and the rest charged a daily fee of $65,000 or above. The majority (54.5%) charge an hourly rate of between $4,000 to $6,000; 11.4% charge an hourly rate of $8,000 or above; and the rest between $6,000 and $8,000.
According to data gathered by the Civil Division of my Department between 1 October 1997 to 31 March 1999, Senior Counsel engaged by that division charged an average daily refresher rate of $53,368 and an average hourly rate of $6,088. Queen's Counsel from England hired by the Civil Division of my Department charged an average daily refresher rate of approximately $35,000 (£2,748.90) and an hourly rate of approximately HK$4,900 (£385.70). The daily refresher rate charged by English Queen's Counsel hired by my department was on average 34% less than that charged by their Hong Kong counterparts, and the hourly rate 19.5% less. However, these figures do not take into account passages and hotel accommodation which must be provided to overseas counsel in addition to their fees.
Apart from these fees for English counsel, I have been unable in the time available to obtain any data in respect of the legal fees charged in South Africa and the United Kingdom."
56. These figures no doubt relate to the top end of charges involving the most sought-after silks for the conduct of heavyweight litigation. This is so since experience indicates that overseas silks admitted are usually of a high quality and often have specialist experience. One may also assume that the Department of Justice is not in the habit of briefing out such work save in relation to heavy cases.
57. The Secretary for Justice's figures indicate that appreciably higher average rates were charged in the top echelons of the local Bar in respect of daily refreshers and hourly charges when compared with the rates charged by overseas counsel. Mention is not made of relative levels of brief fees. One may perhaps proceed on the assumption that the Hong Kong and English brief fees were comparable (since it seems likely that any significant difference would have been mentioned). On that footing, these figures suggest that in the area of practice mentioned by Ms Leung, average Hong Kong fees are markedly higher than comparable English fees and involve very substantial charging rates viewed in terms of general affordability.

 



Previous Page Back to Top Next Page
Web Accessibility Conformance