K19.3. Factors contributing to the cost of litigation
| 558. |
The more ambitious - and undoubtedly more
difficult and less certain - objective of reducing costs or promoting proportionality of
costs requires at least a degree of success in the reforms as a whole. It is not an
objective that can be achieved merely by changing the rules on costs. As the ALRC points
out, three key factors influence the level of costs in a case :- |
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"The Commission's
empirical research showed that the complexity of cases, the number of court or tribunal
case events and lawyers' charging practices were the most significant influences in
determining the amount of private costs." (Note 496) |
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| 559. |
While similar empirical research does not
exist in Hong Kong, it is reasonable to assume that those three factors - complexity,
number of case events and level of fees - are equally important in determining how much
litigation will cost in any particular case. They apply both to a party's own costs and to
his potential liability for the other side's costs. |
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| 560. |
No more needs to be said here about the first
two factors. Much of this Report has already been devoted to discussing procedural reforms
aimed at reducing complexity and cutting down on the frequency of court events. To the
extent that such ends are achieved, it is to be hoped that a reduction in the overall cost
of litigation results. |
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| 561. |
One may add in passing that the focus on the
three factors mentioned is not intended to suggest that other factors may not have an
equally or even more important bearing on the overall cost of litigation. Issues such as
the extent to which foreign-qualified lawyers are admitted to appear before the local
courts; how far rights of audience may be extended; the availability of conditional or
contingency fee arrangements and the scope of legal aid, among others, are all questions
with a possibly significant impact on litigation costs. However, such questions fall
outside the Working Party's remit. |
Notes
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