HKIAC in the Americas: Navigating Dispute Resolution in Asia Chiann Bao, Secretary General, HKIAC.

HKIAC in the Americas: Navigating Dispute Resolution in Asia Chiann Bao, Secretary General, HKIAC

Asia – Latin America Trade

China’s Global Reach

• Chinese Outbound investment rose 14% to US$77.2 billion in 2012.

• China now holds the no 3 spot in global outbound investment rankings, behind the US and Japan, up from 16 place in 2011

China’s Global Reach – United States

According to the Bureau of Economic Analysis, annual outbound direct investment from China to the U.S. has grown by more than 300% since 2007

China’s Global Reach – Latin America

• In 2012, the value of bilateral trade increased, amounting to USD$240 billion

• China - the third largest investor

• China is the major importer of Latin American raw materials

HKIAC in the Americas

HKIAC in the Americas

Overview of Hong Kong and HKIAC

Asia’s Prime Location for Dispute Resolution Serviceswww.hkiac.org

Overview

Seat of Arbitration: Hong Kong

Pro-Arbitration Legislative Framework

Independent & Arbitration-Friendly Judicial System

Arbitral Institution & Rules: HKIAC

About HKIAC

HKIAC Administered Arbitration Rules

HKIAC Arbitrators


Effective 1 June 2011 (HK Ordinance Cap.609) Previous statutes were based on a split regime – an

international regime, based on the UNCITRAL Model Law, and a domestic regime

New Arbitration Ordinance unifies the two regimes More user-friendly Effectively extends the application of the UNCITRAL Model

Law to all arbitrations in Hong Kong

HK Arbitration Ordinance


HK Arbitration Ordinance

1. Ease of Use• Clear, certain and accessible arbitration law based on the Model Law

2. Confidentiality• Protection of confidentiality in arbitration proceedings and related

court hearing

3. Discovery

• Reasonable – no automatic right to discovery

4. Interim Measures

• Expanded provisions on interim measures

5. Costs Assessment and taxation of costs and review of fees and expenses by

courts


HK Judicial System

• “One country, Two systems”

• Independent and based on Rule of Law

• Court of Final Appeal – an expatriate judge will sit as one of the 5 members of the Panel

• No concerns of a PRC “home court advantage” as the HK Court of Final Appeal has adjudication power fully independent of the PRC Supreme Court.

• Pro-Enforcement

New York Convention for the Recognition and Enforcement of Arbitral Awards

Arrangement Concerning Mutual Enforcement of Arbitral Awards Between the Mainland and the Hong Kong SAR

Enforcement of Arbitral Awards


Established in 1985, independent and non-profit organisation

25 Council Members – Board of Directors

20 full-time staff

International and multilingual Secretariat representing both common law and civil law traditions

300+ arbitrators, 500+ mediators

HKIAC Overview


Role of the HKIAC

• Administrator of arbitrations, mediations and domain name disputes• Appointing authority under the Hong Kong Arbitration Ordinance

• Determine number of arbitrators• Appoint arbitrator(s)• Appoint mediator

• Hearing center for arbitrations and mediations• Fundholder for arbitrations• Administration center for arbitration institutes based in Hong Kong

• Chartered Institute of Arbitrators (East Asia Branch)• Hong Kong Institute of Arbitrators• Society of Construction Law


HKIAC Arbitration: Institutional & Ad Hoc

Institutional Arbitration HKIAC Administered Arbitration Rules (2008, to be amended in 2013) Procedures for the Administration of International Arbitration (2005)

Ad Hoc Arbitration Form 1 & 2 applications (to determine number of arbitrators and

appointment of arbitrators)


HKIAC Administered Arbitration Rules (2008)

Key Features

•Flexible Fees•Competitive Costs•“Light Touch” Approach•Expedited Procedures


HKIAC Administered Arbitration Rules: Fees and Costs

• Arbitrator’s Fees - parties have a choice of agreeing to either(a) the Schedule of Fees attached to the Rules; or(b) a separate fee arrangement.

• Registration Fee - US$1,000

• Administrative Fees - Schedule of Fees attached to the Rules Administered fees are based on the value of the claim(s)

and counterclaim(s) and capped at US$26,850.


Disputed Amount

(US$)

HKIAC ICC KCAB KLRCA SIAC

500,000 4,250 14,165 3,155 6,500 5,809

5,000,000 11,850 45,015 23,900 14,500 16,827

10,000,000 14,850 57,515 44,371 19,500 21,212

50,000,000 26,850 95,515 122,984 30,000 39,872

100,000,000 26,850 99,215 131,010 30,000 39,872

Cost Comparison: Administrative Fees


HKIAC Statistics

In 2012, HKIAC handled a total of 456 dispute matters•293 arbitration•116 domain name disputes•47 mediation disputes

Of the 293 arbitration cases handled by the HKIAC in 2012,•68% were international•32% were domestic•68 cases were fully administered by the HKIAC in accordance with its Rules

The total amount in dispute for administered cases was approximately US$1.8 billion


HKIAC: International Arbitration

139

173

212

175 178199

Panel/List of Arbitrators

HKIAC Panel of Arbitrators -300+ HKIAC List of Arbitrators - 90+

http://www.hkiac.org/index.php/en/arbitrators

The HKIAC Online Searchable Database allows parties to search for arbitrators by way of nationality, professional background and areas of expertise, thereby ensuring the appropriate appointment for their dispute.


HKIAC Administered Arbitration Rules (2013): Proposed Amendments

Key Changes:

• Emergency arbitrator provision• HKIAC’s prima facie power to join additional parties• HKIAC’s power to consolidate arbitrations• Enhanced system to determine number of arbitrators,

including aHK$6,500 cap on arbitrator’s hourly rate• Robust expedited procedure

THANK YOUWebsite: www.hkiac.orgAddress: 38th Floor, Two Exchange Square Central, Hong Kong

Tel No. : (852) 2525 2381Fax No. : (852) 2524 2171Email: [email protected]

HKIAC in the Americas: Navigating Dispute Resolution in Asia Chiann Bao, Secretary General, HKIAC.

Documents

hkiac slide

hkiac hkiac

mediators hkiac overview

proenforcement slide

dispute resolution services

asias prime location

accessible arbitration

arbitration proceedings