On October 12, counsel Edward Taylor (International Arbitration-Hong Kong) presented on the practical benefits that Hong Kong’s expanded arbitration funding framework will offer to companies at a seminar co-hosted by Shearman & Sterling and Omni Bridgeway. The session, moderated by partner Wanda Woo (Capital Markets-Hong Kong), focused on recent reforms in Hong Kong to allow parties and their lawyers to enter into Outcome Related Fee Structures (ORFSs), including conditional fee and contingency fee arrangements, for arbitrations and related court proceedings. Edward explained that these reforms, which are due to come into force later this year, will create a world-class range of funding options for parties with disputes in Hong Kong. Among other potential benefits, ORFSs will provide parties with options for reducing upfront legal costs, improving cash flow, sharing risk and aligning incentives.
Tom Glasgow and Cheng-Yee Khong, senior representatives of leading third party funder Omni Bridgeway, addressed the availability of Third Party Funding (TPF) in Hong Kong as well as benefits for companies in combining TPF and ORFSs.