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LegCo Online Up-date: Court / litigation
2009-01-15 Dear Colleague, Interest rate on judgment debts Concern has been expressed on the high interest rates on judgment debts which appear to be out of step with ordinary interest rates. The Judiciary Administrator has written on 7 January 2009 in response to the concern, and explained as follows: "The judgment rate determined by order of the Chief Justice under section 49 of the High Court Ordinance is normally 3% above the Best Lending Rate. Such a rate should encourage prompt payment. It should be noted that after widespread consultation, the Law Reform Commission in its Report on Interest on Debt and Damages (May 1990) considered that the basis of an award of statutory interest is to compensate the creditor for having to borrow funds and recommended the Best Lending Rate +3% to be the appropriate rate. But section 49 gives the court a discretion to order such interest to run at a different rate and to order different rates to be applied to different periods." Reference was also made to the relevant concern of the effect of high interest rates on taxed costs. Please consult the full text of the letter (attached) Implementation of CJR The Judiciary, the Bar and the Law Society have briefed the LegCo Panel of Administration of Justice and Legal Services on the preparations carried out to enable judges and practitioners to get ready for the implementation of CJR. Steps are also being taken by the Resource Centre at the High Court to assist unrepresented litigants. The Panel was assured that all is ready for CJR to come into force on 2 April 2009 as planned: 1. Commencement notice will be gazetted in February for the amendment ordinances and new rules to come into effect on 2 April 2009; 2. Further (technical and minor) amendments will be made to the new rules and will be gazetted at the same time; 3. The new practice directions will come into force at the same time except for the Practice Direction on Mediation which is planned to come into force in January 2010; 4. The Chief Justice will set up a mechanism to monitor the implementation of CJR. Link to paper: http://www.legco.gov.hk/yr08-09/english/panels/ajls/papers/aj0113cb2-601-6-e.pdf http://www.legco.gov.hk/yr08-09/english/panels/ajls/papers/aj0113cb2-601-7-e.pdf http://www.legco.gov.hk/yr08-09/english/panels/ajls/papers/aj0113cb2-620-1-e.pdf http://www.legco.gov.hk/yr08-09/english/panels/ajls/papers/aj0113cb2-638-1-e.pdf Margaret Ng Interest on Judgment Debts Click here to download |
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