After nearly four years of discussions, the Chinese mainland and
Hong Kong Special Administrative Region signed an agreement Friday
to make civil and commercial judgments delivered in each others'
courts enforceable on both places.
The long-awaited pact provides a new and convenient mechanism
that a judgment creditor will no longer need to spend a large
amount of time and money to bring a legal action again in the place
where the property of the debtor is situated.
On behalf of the central government and HKSAR government, the
Grand Justice Huang Songyou, Vice President of the Supreme People's
Court, and Secretary for Justice Wong Yan-lung signed the
agreement, entitled "the Arrangement on Reciprocal Recognition and
Enforcement of Judgments in Civil and Commercial Matters by the
Court of the Mainland and of the Hong Kong Special Administrative
Region Pursuant to Choice of Court Agreements between Parties
Concerned".
It is another mutual legal assistance agreement reached between
the two places in line with the Basic Law, following the signing of
the Arrangement for Mutual Service of Judicial Documents in Civil
and Commercial Proceedings and the Arrangement Concerning Mutual
Enforcement of Arbitral Awards in 1999.
Calling the signing of the arrangement a landmark symbolizing
the on-going progress of legal assistance between the Chinese
mainland and the HKSAR, Huang said it marks a big step forward
towards a closer relationship of legal assistance between the two
places.
"It is another good example of successful cooperation between
the two places following the signing of the 1999 arrangement,"
Huang said, adding the scope of mutual legal assistance is
extending from the service of judicial documents in civil and
commercial proceedings and enforcement of arbitral awards to a
wider areas at higher level.
Huang said the arrangement will have a positive effect on the
successful implementation of "One Country, Two Systems" and protect
the lawful interests of the parties concerned.
Secretary for Justice Wong Yan-lung believed the new mechanism
would provide convenience for and enhance the confidence of people
who are involved in business dealings in the two places, thus
making the business environment of the two places more
attractive.
"At the same time, the new arrangement can also strengthen Hong
Kong's position as a regional center for dispute resolution," Wong
said.
Since the first meeting on July 25, 2002, a number of proposals
have been raised and discussed thoroughly by both sides. Altogether
seven consultation meetings have been held and the text has been
amended 26 times before the two sides finally settled the text.
The agreement is applicable only to money judgments on disputes
arising from commercial contracts where the parties involved have
made an agreement in writing in which a mainland court or a HKSAR
court is expressly designated as the court to have sole
jurisdiction for resolving the dispute concerned.
Both sides have agreed on a list of 469 mainland courts whose
judgments in commercial cases may be enforceable in Hong Kong,
including the Supreme People's Court, 32 higher people's courts,
389 intermediate courts and 47 basic-level courts.
Relevant legislative procedures must be passed through in Hong
Kong before the Arrangement could be implemented, while in the
Chinese mainland, the Supreme People's Court will also have to
issue new guidelines and interpretations for its
implementation.
(Xinhua News Agency July 15, 2006)