The Hong Kong Mediation Council Ltd. (HKMCL) recently assisted the Primary People’s Court of the Qianhai Cooperation Zone (Qianhai Court) in settling a cross-border dispute, marking the first instance of a Hong Kong mediation agency participating in the mediation process of the Qianhai Court.

In the dispute, Shaw, a Hong Kong resident, had applied for a HK$20 million (US$2.56 million) loan from a Hong Kong bank in 2014. Following the loan’s maturity, Shaw failed to repay the principal and interest as stipulated. In accordance with the agreed-upon jurisdiction, the bank and Shaw appeared before the Qianhai Court in April to resolve their dispute. Upon entering the pre-litigation mediation process, the Qianhai Court assigned the case to the HKMCL for mediation.

香港调解会副主席、香港区域法院暂委聆案官马嫊傃主持调解现场.JPG

Josephine Ma, vice chairperson of the HKMCL, presided over the mediation. With a deep understanding of Hong Kong’s industry transaction practices, she swiftly pinpointed the focal point of the dispute between the two parties — the calculation method for the repayment of interest and liquidated damages.

Ma’s expertise facilitated the parties in reaching a mediation agreement aligned with Hong Kong law. Consequently, the Qianhai Court promptly issued a judicial confirmation letter with enforceable provisions for both parties.

With the approval of the Supreme People’s Court, the Higher People’s Court of Guangdong Province launched a pilot program in May to integrate mediation agencies from Hong Kong and Macao into the Guangdong-Hong Kong-Macao Greater Bay Area as specially invited mediation organizations.

The pilot program is currently operating at the Guangzhou Intellectual Property Court and the Qianhai Court, enabling an initial group of four Hong Kong mediation agencies to engage in mediation within these two institutions.