General Costs:

Q: How are litigation costs calculated in Hong Kong?

A: Costs vary based on type of work, time, and complexity. Fixed fees apply for non-argument work like real estate, probate, etc. Disputes and lawsuits usually involve hourly rates with fixed sums for court appearances. Rates depend on lawyer experience and specialization.

Q: Is "litigation cost" different from "lawyer fees"?

A: Yes! Court fees (filing, etc.) are minimal compared to lawyer fees, which can reach millions.

Q: What are the major expenses in litigation?

A: Major expenses include lawyer fees, barrister fees, and expert witness fees (doctors, surveyors, etc.).

Court Costs:

Q: How much are court filing fees in Hong Kong?

A: They vary depending on the court (High Court: HK$1,045, District Court: HK$630) and additional fees may apply during the case.

Q: Does the winning party always recover all legal costs?

A: No. Even with a costs order in your favor, you might only recover a percentage (e.g., 40%) on a "party and party basis," which is lower than what you agreed with your lawyer.

Winning the case but still have to pay legal costs?

Q: What happens if I win the case but still have to pay legal costs?

A: This can happen, especially in cases with small claims. The recovered percentage might not cover your full agreed-upon fee with the lawyer.

Q: When is litigation not recommended?

A: Litigation can be expensive, so it might not be advisable for cases with small claimed amounts.

Indemnity Costs in Hong Kong



Understanding Indemnity Costs:

Q: What are "indemnity costs" in legal proceedings?

A: Indemnity costs are a higher level of cost recovery awarded when one party has caused significant losses to the other through unreasonable behavior during litigation. They aim to fully compensate the winning party for all their legal expenses, not just a portion.

Q: When does the court award indemnity costs?

A: This happens in exceptional circumstances, such as: 

• Excessively high expenses incurred due to unnecessary actions.
• Making false claims like fraud.
• Misconduct leading to wasted time for the court and opponent.
• Raising baseless accusations or arguments. 

Q: How do indemnity costs differ from standard costs?

A: Standard costs ("party and party basis") are the starting point and typically cover 50-70% of reasonable legal expenses incurred for pursuing a valid claim. Indemnity costs are much higher, potentially covering 90-100% of expenses, if the judge deems the losing party's actions caused significant losses.

Additional Clarifications: 

Q: Are legal fees always fully covered under indemnity costs? 

A: Not always. While significant portions are recoverable, the court still considers the reasonableness of fees and might adjust the amount awarded. 

Q: Can I request indemnity costs in my lawsuit? 

A: While you can argue for them, the court ultimately decides based on the specific circumstances and severity of the losing party's actions. Consulting a lawyer is crucial to assess your chances.

Q: Should I be worried about facing indemnity costs if I lose my case?

A: If you acted reasonably and in good faith throughout the proceedings, the risk is minimal. However, seeking legal advice beforehand to ensure proper conduct can reduce potential concerns.

Remember: This information is for general understanding only and does not constitute legal advice. Please consult a lawyer for specific guidance related to your situation.