Dispute Resolution Services | Mainland - Hong Kong Joint Mediation Center

Introduction

MHJMC is specialised in providing investor-state mediation services. Our strong background in investment experience and well-systematic structure makes us one of the best providers for investors (including businessman, corporates, private or company investors, and more) who invested into the state-owned projects an accessible and transparent option to resolve the investment induced dispute with the states. In 2017, MHJMC is privileged to be one of the two designated mediation centres in Hong Kong at Closer Economic Partnership Arrangement (CEPA) Mediation Mechanism for Investment Dispute at the Investment Agreement under the Mainland and Hong Kong, guiding and supporting a dispute between a Hong Kong investor and the Mainland China statutory bodies, or a Mainland Chinese investor and the Hong Kong government.

Our dispute resolution mechanism for investor-state mediation is structural but flexible, it offers high party autonomy and strong confidentiality protections. Such professional-quality facilitates investors and the state disarming the indifferences in the past and move forward to resolve their disputes; creating an approachable and mutually acceptable settlement outcome which can benefit not only at the present, instead also to strengthen the foundation for future collaborations.

Scope of Services

The Mainland-Hong Kong Joint Mediation Center provides professional mediation service for the settlement of investment disputes arising from the "Investment Agreement" between Mainland investors and Hong Kong. The types include:

Minimum Standard of Treatment
National Treatment
Most-Favoured Treatment
Performance Requirements
Senior Management, Boards of Directors and Entry of Personne
Expropriation
Compensation for Losses
Transfer

Our Investor-State Dispute Professional Mediators

As one of the highly recognised mediation institutions world-wide, MHJMC and our mediators are dedicated to providing professional mediation service at their best, and in a manner that is objective, equitable, fair, and reasonable. Our professional mediators (CEPA) are experts who acquired substantial experience in the investment industry and professionally accredited in mediation. A total of 21 professional cross-border mediators at the MHJMC are designed for the CEPA – Investor-State dispute mediation service provider.

You may visit our panel-list for our professional mediators for the scheme.

Our Mediation Service

Mediation is considered one of the most effective and economic means to resolve disputes. Its applicability in investment dispute facilitates disputants reaching a mutually accepted settlement though an efficient, highly self-determining and confidential process.

Application Method

Step 1 - Application Stage

Party / Parties shall submit an application to our secretariate via email (admin@mhjmc.org).
i) After a Party submits an application along with the application fee, MHJMC would send an "Invitation to Mediate” to the other Party. The recipient shall response within the given timeframe if accepts the invitation.
ii) Parties shall respectively settle the application payment with MHJMC.
The case is officially admitted to the MHJMC after both parties to use the Center's service.

Step 2 - Case admission / Appointing Mediator Stage

Fee schedule of mediator varies; parties shall understand fully on the basis of mediator's charge. The named fee shall be settled according to the prior arrangement set between the parties and the mediator (Reference proved in "fee schedule").

Step 3 - Mediation Stage

The mediator will arrange with parties on the mediation arrangements. MHJMC roles as support throughout the Mediation journey between the parties.

Step 4 - Post-mediation Stage

(Successful) Shall an agreement is successfully reached in the mediation; investors shall apply valid enforcement to that agreement at the location where the investment was made.
(Unsuccessful) If no agreement can be reached in the mediation stage. Parties will exit the CEPA mediation mechanism and shall seek other dispute resolution mechanism for their dispute.

Application Process

Note for application

(referenced from the CEPA-Mediation Mechanism for Investment Disputes)

This Mediation Mechanism shall only be applicable to an investor of one side (Hong Kong Investor and Mainland; or Mainland Investor and Hong Kong), of the Investment Agreement under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), who wish to submit an application to mediate the investment dispute to a mediation centre of the other side where the investment was made. A disputing investor may submit an application to mediate an investment dispute to a mediation institution only if the following conditions are met:

1) The investor consents to mediation in accordance with the procedures set out in the Agreement and this Mediation Mechanism, and delivers notice of such consent together with its submission in relation to the investment dispute to be mediated to the mediation institution and the disputing side. The notice should specify:

1.1) the name, address, telephone number and electronic mail address of the investor, as well as the name, address, telephone number and electronic mail address of an enterprise that is a covered investment of the investor which has suffered from loss or damage in the disputing side (if any),
1.2) the provisions alleged to have been breached and any other related provisions under the Agreement,
1.3) the legal and factual basis for the claim, including the measures involved, and
1.4) the means of compensation sought and the approximate amount of compensation;

2) the investor has delivered proof establishing that it is a qualified investor of the other side at the time of its submission of an investment dispute for mediation in accordance with the requirements set out under paragraph 1.1 of this Mediation Mechanism;

3) at least one month prior to the delivery of the notice in accordance with the requirements set out under paragraph 1.1 of this Mediation Mechanism, the investor should have requested amicable consultation with the disputing side in accordance with sub-paragraph 1(i) of Article 19 of the CEPA – Investment – " Article 19” (Dispute Settlement between a Hong Kong Investor and the Mainland) or sub-paragraph 1(i) of Article 20 (Dispute Settlement between a Mainland Investor and Hong Kong) of the Agreement;

4) the investor has, in relation to the measure(s) alleged to constitute a breach by the disputing side of its obligations that are specified in Article 19 (Dispute Settlement between a Hong Kong Investor and the Mainland) or Article 20 (Dispute Settlement between a Mainland Investor and Hong Kong) of the Agreement, waived its right to initiate or continue dispute settlement procedures under any agreement between any other party and the disputing side;

5) not more than three years have elapsed from the date on which the investor first acquired, or should have first acquired, knowledge of the alleged breach and knowledge that the investor or a covered investment of the investor has suffered loss or damage thereby. However, any delay resulting from force majeure shall not be taken into account in counting the aforementioned three-year period.

Reference

CEPA – Investment Agreement [Full Text]

https://www.tid.gov.hk/english/cepa/legaltext/files/cepa14_main.pdf

CEPA - Mediation Mechanism for Investment Disputes:

https://www.tid.gov.hk/english/cepa/investment/dispute.html