A supplier ships you the wrong goods and refuses a refund. A former business partner walks off with the client list. A counterparty signs the contract, takes the money, and then breaks its promise. At some point in running a business in Hong Kong, you will have to ask a question most founders never wanted to ask: should I actually sue this person?
This is the playbook we wish more business owners read before they walk into our office. It will not turn you into a litigator, but it will let you have a more productive first conversation with one and avoid the mistakes that quietly cost the most money.
Step zero: should you actually sue?
Before you start drafting Court pleadings in your head, ask three questions.
- Is the claim worth chasing? A claim with a strong legal basis but no realistic recovery (e.g. because the defendant has no assets, has skipped jurisdiction, or sits behind a shell company in a jurisdiction with weak enforcement) is a claim that will likely cost more than it returns. Litigators talk about this as the difference between “an empty win” and “recovery”. They are not the same thing.
- Is your evidence in order? WeChat messages, email chains, signed contracts, shipping records, bank statements. A clean and detailed paper trail beats a strong oral recollection a majority of the time.
- Do you have time? Hong Kong commercial litigation is faster than many think but slower than what business owners expect. Even a relatively clean writ-and-summary-judgment matter can run six to twelve months. A contested case in the Court of First Instance with full discovery and a trial can take two to three years from writ to judgment, sometimes longer for more complex cases or if appealed.
If the honest answer to any of those is “no”, litigation may not be your best way forward. Mediation, a strategic negotiation for settlement, or a well-pitched demand letter can produce a faster and better result than a writ.
Pre-action: the letter before action
In almost every commercial dispute, the first move is a letter before action — a formal written demand setting out the claim, the legal basis, the relief sought, and a deadline by which the other side should respond.
This is not a mere formality. A well-drafted pre-action letter does several things at once. It brings the dispute into clear focus and compels the other side to engage meaningfully. It often opens the door to early resolution before any court fee is incurred. And if the matter does end up in court, it puts you on the stronger side of the costs argument later. Generally, Hong Kong courts dislike litigants who commence litigation prematurely without giving the other side a reasonable chance to resolve the matter.
A common mistake here is sending the letter yourself without the necessary legal advice or appropriate expertise. A letter from a law firm signals seriousness in a way that an email from a director does not. We have seen six-figure debts settle in full within 21 days of issuance of a demand letter, with no court action ever filed.
Choosing the right court
Hong Kong’s civil court structure is straightforward once you know the monetary thresholds.
- Small Claims Tribunal hears monetary claims up to HK$75,000. No legal representation is allowed. Useful for low-value consumer-type claims, less useful for commercial disputes you would normally instruct a lawyer for.
- District Court hears civil claims between HK$75,000 and HK$3 million.
- Court of First Instance of the High Court hears claims above HK$3 million and any claim with no monetary cap (such as injunctions or declaratory relief).
Picking the right court matters because it affects your timeline, your costs recovery, and the amount of money you can actually recover.
What a Hong Kong civil action looks like
For most commercial disputes, the action is started by a writ of summons (Form 1) issued out of the appropriate Registry. The writ either has the statement of claim endorsed on it or is followed shortly by a separately filed statement of claim setting out the facts and the relief sought.
The defendant has 14 days to file an acknowledgement of service indicating whether they intend to defend. What follows, in a contested case, is broadly:
- Pleadings — statement of claim, defence, reply (where needed)
- Discovery — both sides exchange relevant documents under Order 24 RHC
- Witness statements
- Expert reports if required
- Pre-trial review and case management
- Trial
- Judgment, then enforcement
There is also a parallel track of interlocutory applications happening at the same time. These are the tactical battles that often decide the war: applications to strike out, summary judgment under Order 14, security for costs, freezing injunctions, discovery applications, and so on.
Tactical shortcuts worth knowing about
Not every dispute needs to go all the way to trial. Two procedural tools are worth knowing about because they can compress a year of work into a few months.
Summary judgment under Order 14 is available where the defendant has no real defence to the claim. If you can show the court that the defence is a sham (bare denials, irrelevant counterclaims, or an obvious attempt to delay), you can apply for judgment without a trial. This is particularly powerful in straightforward debt claims and in disputes where liability is clear and only quantum is in issue. Court of First Instance authority confirms that the court can grant summary judgment on liability and preserve the quantum for trial, which is a useful tactical position for creditors with strong liability cases but harder damages calculations.
Statutory demand and winding-up petition sit outside the normal civil action and are aimed specifically at corporate debtors (the equivalent for individual debtors being a statutory demand followed by a bankruptcy petition). If you are owed an undisputed sum from a Hong Kong company, a statutory demand under the Companies (Winding Up and Miscellaneous Provisions) Ordinance gives the company 21 days to pay before you can present a winding-up petition. The commercial pressure of a possible winding-up petition often produces payment in days. We cover this in detail in our separate post on statutory demands and winding-up petitions.
How long it takes, honestly
Timelines depend heavily on the complexity of the case, the appetite for settlement, and the conduct of the other side. As rough working estimates:
A clean debt claim with summary judgment can produce a judgment in 6 to 12 months. A standard contested commercial action in the District Court typically runs 18 to 30 months. A case in the Court of First Instance can run two to four years through to trial, with appeals adding another 12 to 24 months on top and complex cases running even lengthier. Urgent interlocutory injunction applications are heard much faster, sometimes within days of issuing the application.
The honest answer most clients do not want to hear: even a “fast” outcome usually takes longer than you would like. Build that into your commercial planning.
What it costs
Court filing fees in Hong Kong are modest. A writ of summons in the High Court costs around HK$1,045 to issue. The real cost is professional fees: solicitors, counsel where briefed, and expert witnesses where needed.
Costs most commonly can be recovered from the losing side under the “costs follow the event” principle, but the recovery is partial. On a standard taxation, a successful party typically recovers somewhere between half and two-thirds of actual costs incurred. The remainder comes out of pocket, win or lose. Indemnity costs (a higher recovery) are usually reserved for cases where the losing party’s conduct was particularly unreasonable, with exceptions.
Should you arbitrate instead?
If your contract contains an arbitration clause, you may not have a choice. Courts will generally stay the proceedings and refer the parties to arbitration. Even where there is no clause, arbitration is worth considering for cross-border disputes, disputes where confidentiality matters, or disputes where you want to avoid the public record of a court judgment.
Hong Kong is one of the world’s leading arbitration seats. The Hong Kong International Arbitration Centre (HKIAC) administered cases worth over HK$92 billion in dispute value in a recent year, and Hong Kong courts take a strongly pro-enforcement approach to arbitral awards. The current HKIAC Administered Arbitration Rules (in force since 1 June 2024) tightened up procedural mechanics aimed at preventing delay tactics.
We cover the enforcement side in our post on enforcing judgments and arbitral awards in Hong Kong.
Limitation: the deadline you cannot extend
The single most expensive mistake a business owner makes is missing the limitation period. Under the Limitation Ordinance (Cap. 347), the basic period for a contract claim is 6 years from the date of the breach. For disputes arising under a deed, 12 years. For tort claims, 6 years from the date the cause of action accrued. Personal injury claims have shorter periods.
There are some certain case-specific exceptions but if a claim is anywhere near its limitation date, file a protective writ first and negotiate after.
What to bring to your first meeting
If you have decided to take legal advice, here is what to put together before your first meeting. It will save you fees and produce a more meaningful assessment.
- A short written chronology of what happened, in date order.
- The key contracts, signed copies.
- The key communications (emails, WeChat threads, letters).
- A list of the people involved, with their roles and known contact details.
- A clear statement of what you actually want: payment, an injunction, an apology, a buy-out, a clean exit.
- Any prior correspondence or demand letters already sent.
Most importantly, come with an open mind on outcome. We will look at your case honestly and tell you the most commercially sensible route toward a resolution that aligns with your interest.
Where TITUS comes in
As commercial litigators, we act for Hong Kong and international businesses across the full litigation lifecycle, from pre-writ strategy and demand letters through trial, appeals, and enforcement. Our practice is built around commercial outcomes, not procedural process. Where it makes sense to settle, we settle. Where it makes sense to fight, we fight, and we know how to navigate the legal mechanisms for our client.
If you are weighing up whether to take a dispute to court, or you have just been served with a writ and need to understand what comes next, get in touch for an initial discussion.
Disclaimer: This article provides general information about commercial litigation in Hong Kong and is not legal advice. Legal procedures, court fees, and case law change over time. For advice on a specific matter, please consult a Hong Kong-qualified solicitor.