In Hong Kong, anybody who got claims not exceeding HK$ 50,000 can go to the Small Claims Tribunal. The procedures are informal, inexpensive and fast. Even though it is not a full court, evidence is still required. Parties to the claim are not represented by lawyers unless in special circumstances.
Most overseas Filipinos working in Hong Kong would have heard of this tribunal. It is the place where disputes as to debts, service fees, damage to property, unpaid goods and services, and other consumer claims are being handled. Even if the claim is below HK$ 50,000, cases that involve employment contracts will not be entertained. There is the Labour Tribunal that handles all employee and employer matters. Husbands not paying support to ex-wife and children cannot use this tribunal. They have to go to the Family Court.
Special distinction is made between simple debts that can be claimed under the Small Claims tribunal as opposed to moneylenders’ loans, which will be claimed using another court. Loans under lending schemes are subject to the Money Lending Ordinance where license from the Hong Kong government is required and interest rates are not usurious.
If your claim is over HK$ 50,000 you may need to break your claims. But if you only have one single claim for HK$ 60,000, you can abandon the excess HK$ 10,000 to be within the limit.
Let us say 10 OFWs are claiming HK$ 10,000 each for a total of HK$ 100,000 against one employment agency. What they can do is file 2 claims with 5 OFWs in each claim for total of HK$ 50,000. Another way is for each one to file her own claim of HK$ 10,000.
If Maria is collecting phone cards worth HK$ 75,000 from Lina, Maria can either forgo the HK$ 25,000 otherwise the Small Claims Tribunal will not hear the claim. Depending on the facts of the case, Maria can claim from Lina in batches. Say HK$ 35,000 for cards sold in January and HK$ 35,0000 for cards sold in April. Maria will then have 2 claims against Lina.
Maria must consider the following before filing for claims. Assess whether Lina has enough assets to pay if the claim succeeds. Maria might just have a paper victory with no money attached at the end of the day. Maria must prepare all documents as evidence of her claim as she has the duty to prove that Lina owes her money. Collect from Lina in writing, stating the circumstances of the money owed, that Lina must pay within a certain period of time; otherwise a claim to the Tribunal will be filed. Keep a written record of receipts and disbursements.
There are cost involved in filing the claim such as filing and summons fees, expenses of photocopying, certification, affidavit, search, translations, and other miscellaneous, which in all circumstances are reasonable. Enforcement of judgement will require a Bailiff and cost will include actual transportation expenses, overtime pay, plus 20% of administrative charges. This is when the amount of claim should be big enough to cover the bailiff expenses.
Time will be spent in attending at least 2 hearings and the actual trial date. Cooperation from your employer must be obtained beforehand. You do not want to lose your job because you are busy going to the Small Claims Tribunal.