Document background
The Contingency Fee Agreement serves as a crucial document for structuring alternative fee arrangements in Hong Kong arbitration proceedings. While traditionally prohibited in Hong Kong litigation due to common law restrictions on champerty and maintenance, recent legislative reforms have opened the door for such arrangements in arbitration contexts. This document is typically used when clients seek to align legal costs with case outcomes, particularly in commercial arbitration matters where significant claims are involved. The agreement must carefully balance the interests of both legal practitioners and clients while ensuring compliance with Hong Kong's regulatory framework. It includes detailed provisions on fee calculations, success criteria, risk sharing, professional obligations, and client protections. The document is particularly relevant for complex arbitration cases where traditional fee arrangements might pose barriers to access to justice.
