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Policy Statement & Submission

2010/02/12

Consultation on Class Actions

The Secretary
The Class Actions Sub-committee
The Law Reform Commission
20th Floor, Harcourt House
39 Gloucester Road
Wanchai
Hong Kong


Dear Sir,

The Hong Kong General Chamber of Commerce is pleased to have the opportunity to respond to the Law Reform Commission's consultation document on class action lawsuits. After careful consideration and discussion, involving our members and legal experts, we have come to the conclusion that there is insufficient evidence to support class actions in Hong Kong, and a lack of specifics as to why such an arrangement would be in Hong Kong's best public interest.

Our first observation is that there is no driving demand among either consumers or the business community for such actions. We also note that adequate avenues for pursuing claims already exist, from special courts for small claims to labour and equal rights tribunals.

We further note that overseas experience has not been wholly favourable, most particularly in the United States where an already litigious society and contingency legal fees have combined to create an entire industry devoted to such cases. Moreover, the recent consultation in the United Kingdom resulted in a decision not to pursue the class action option. These two examples alone should be sufficient to require both strong evidence of benefits to the public interest and overwhelming support among the parties concerned before any further steps might be contemplated.

In conclusion, we find the class action option, while possibly having some small economic value, to be far from appropriate for the needs and desires of our society.


Respectfully yours,




Alex Fong
CEO

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