Deacons May 5, 2020 - Hong Kong Online Dispute Resolution Scheme (ODR) As part of its unprecedented relief package to alleviate the impact of COVID-19, the Hong Kong Government is launching the Online Dispute Resolution (ODR) Scheme (Scheme). What cases will the Scheme cover? The Scheme will cover COVID-19 related disputes with a claim amount of not more than HK$500,000, and aims to provide a quick and cost-effective means to resolve disputes, especially for those involving “micro, small and medium-sized enterprises” that may be adversely affected by COVID-19. What are the requirements for applicants?
What are the procedures? The Secretary for Justice describes the Scheme as a “multi-tiered dispute resolution mechanism”. Parties will go through three tiers:
What are the advantages of the Scheme? The Scheme aims to resolve disputes of low value amicably, with the hope of preserving parties’ business relationships. It should be efficient, as each tier of dispute resolution will be conducted and also completed within a limited time prescribed, giving parties the pressure to resolve their dispute. Further, it should be a cost-effective way to resolve such disputes without having to break social distancing measures by meeting and negotiating in person in conference rooms, thereby saving some logistics costs. What further details do we expect from the Government?
As the Government has announced plans for the Scheme to begin in June, it would be helpful for the Government to clarify these issues as soon as possible. Read full article at: https://www.deacons.com/news-and-insights/publications/online-dispute-resolution-scheme-(odr).html |