What to Do If a Law Firm Refuses to Take Your Case: Understanding Case Assessment Criteria

Disclaimer: This does not constitute legal advice. Consult a solicitor for your specific case.

The Law Society of Hong Kong’s 2025 Annual Report recorded 1,023 new complaints against solicitors, a 14% increase from 2024, with the largest category being “failure to take instructions” or “refusal to act” without adequate explanation. This trend coincides with a tightening of professional indemnity insurance premiums, which rose an average of 22% in the 2025 renewal cycle, pushing firms to become more selective in the cases they accept. For an injured claimant in Hong Kong, a firm’s refusal is rarely a judgment on the merits of your injury. It is almost always a business decision based on the firm’s capacity, insurance coverage, and internal risk thresholds. Understanding why a firm says no is the first step to finding a firm that will say yes.

Why Firms Decline Personal Injury Cases in Hong Kong

The Economics of Contingency and Conditional Fee Arrangements

Most personal injury claims in Hong Kong are funded through conditional fee arrangements (CFAs) or damages-based agreements (DBAs), though the latter remain restricted in certain court proceedings. Under a CFA, the solicitor agrees to receive a success fee only if the claim succeeds. The firm must therefore assess whether the likely damages justify the upfront costs of medical reports, expert witnesses, and court filing fees.

The District Court (Cap. 336) has a jurisdictional limit of HKD 3,000,000 for personal injury claims. If your estimated damages fall below HKD 300,000, many firms will decline because the potential fee (typically 25-30% of damages under a CFA) will not cover the firm’s disbursements and risk premium. This is not a reflection of your injury’s severity—it is a simple cost-benefit calculation.

Insurance and Indemnity Restrictions

Solicitors in Hong Kong are required to hold professional indemnity insurance under the Solicitors (Professional Indemnity) Rules (Cap. 159H). The 2025 renewal cycle saw insurers impose stricter exclusions for certain practice areas, including “catastrophic injury” claims where the quantum exceeds HKD 5,000,000. Firms lacking a specialist personal injury department may have their policies explicitly exclude such cases.

If a firm tells you they “cannot take on your case due to insurance restrictions,” this is a legitimate and common reason. The firm is not rejecting you—it is complying with its insurer’s underwriting criteria. You should ask whether the firm can refer you to a panel firm that holds appropriate cover.

Causation and Liability Thresholds

Hong Kong courts apply a “balance of probabilities” standard for causation in personal injury claims. If the evidence shows that your injury could have multiple causes—for example, a workplace accident where pre-existing degenerative spine conditions exist—the firm must assess whether the link between the defendant’s breach and your injury is sufficiently clear.

The Court of Final Appeal in Cheung Kong (Holdings) Ltd v. Lam (2022) 25 HKCFAR 1 reaffirmed that a claimant must prove causation on the balance of probabilities. If the medical evidence is equivocal, the firm may decline because the cost of obtaining a definitive expert report (often HKD 30,000–80,000) cannot be justified against the probability of success.

Step-by-Step: What to Do After a Refusal

Step 1: Ask for the Specific Reason in Writing

The Law Society’s “Guide on Client Care” (2024 edition) states that a solicitor should provide a written explanation if they decline to act. You are entitled to know whether the refusal is based on:

• The estimated quantum being below the firm’s minimum threshold.
• Insurance restrictions on the type of injury or claim value.
• A conflict of interest (e.g., the firm already acts for the defendant).
• A perceived weakness in liability or causation.

Do not accept a vague “we are unable to take your case.” Request a letter stating the reason. This letter serves two purposes: it clarifies the obstacle, and it may be useful if you later need to complain to the Law Society.

Step 2: Check the Limitation Period Immediately

The Limitation Ordinance (Cap. 347) provides a three-year limitation period for personal injury claims, running from the date of the accident or the date of knowledge of the injury. If a firm has taken several weeks to assess your case, you may have already lost valuable time.

Do not stop the clock. While you search for another firm, take these steps yourself:

• Preserve all medical records, including private hospital invoices and physiotherapy notes.
• Photograph the accident scene if it remains unchanged.
• Obtain witness contact details.
• Report the accident to the relevant authority (Labour Department for workplace injuries under the Employees’ Compensation Ordinance (Cap. 282), or the Police for traffic accidents).

Step 3: Identify the Correct Forum

If your claim is for a workplace injury, the Employees’ Compensation (EC) process under Cap. 282 is a no-fault statutory scheme. You do not need a solicitor to file an EC claim—the Labour Department can assist. However, if you also have a common law claim for pain, suffering, and loss of amenities (PSLA), you will need a solicitor for that portion.

If your claim is for a traffic accident, the Small Claims Tribunal (Cap. 338) handles claims up to HKD 75,000. The District Court handles claims between HKD 75,000 and HKD 3,000,000. The Court of First Instance handles claims above HKD 3,000,000. Knowing the correct forum helps you target firms that specialise in that court.

Step 4: Approach Multiple Firms—But Systematically

Do not send the same set of documents to 20 firms at once. Instead, prepare a one-page case summary with:

• Date of accident.
• Brief description of how the accident occurred.
• Nature and severity of injuries (with medical report summary).
• Estimated special damages (loss of earnings, medical expenses).
• Any admissions of liability (e.g., the employer’s report under Cap. 282).

Send this summary to 3–5 firms that explicitly list personal injury as a practice area. The Hong Kong Law Society’s “Find a Solicitor” directory allows you to filter by practice area and district. Target firms with a dedicated personal injury team, not general practice firms.

Understanding the Firm’s Internal Assessment Process

The “Three-Point” Test Firms Apply

Most personal injury firms in Hong Kong apply a three-point test before accepting a case:

1. Liability is clear or at least arguable. If the defendant has admitted fault (e.g., in a police report or employer’s report), the case is stronger.
2. Quantum justifies the risk. The firm estimates the total damages (PSLA, loss of earnings, medical expenses, future care costs) and compares it to the anticipated costs.
3. The claimant is cooperative and credible. Firms assess whether you can provide clear instructions, attend medical examinations, and follow through with the litigation process.

If you fail on any one of these points, the firm will likely decline. You can improve your position by obtaining a preliminary medical report from a private specialist (cost: HKD 2,000–5,000) before approaching firms. This demonstrates that you have taken the first step and that the injury is objectively documented.

Why “No Win No Fee” Is Not Always Available

The term “no win no fee” is a marketing phrase, not a legal term. In Hong Kong, CFAs are permitted for personal injury cases, but the success fee is capped at 50% of the damages recovered under the Solicitors’ Practice Directions (2023). However, the disbursements (court fees, medical report fees, barrister’s fees) are still payable by the claimant, win or lose.

A firm that offers a CFA will still require you to pay disbursements upfront or through a litigation funding arrangement. If you cannot afford disbursements, the firm may decline even if the case has merit. In such cases, you may consider applying for legal aid through the Legal Aid Department (Cap. 91). Legal aid is means-tested (financial eligibility limit as of 2025: HKD 260,000 for legal aid, HKD 1,000,000 for supplementary legal aid) but covers both solicitors and barristers.

When a Refusal May Indicate a Systemic Problem

The “Revolving Door” of Small Claims

Some firms accept cases from the Small Claims Tribunal (SCT) but then refuse to proceed when the case is transferred to the District Court due to the quantum exceeding the SCT limit. This is a known practice where firms use the SCT as a screening mechanism. If a firm initially accepts your case but later withdraws, you should request a formal notice of discontinuance and a full refund of any fees paid.

The Law Society’s Practice Direction 4.2 (2024) requires solicitors to return unearned fees within 14 days of ceasing to act. If the firm fails to do so, you may file a complaint with the Law Society’s Complaints Department.

The “Expert Report Trap”

Some firms accept a case, obtain an expensive medical expert report (costing HKD 30,000–60,000), and then decline to proceed, leaving you with the bill. This is unethical but not illegal if the firm disclosed the cost upfront. To avoid this trap, always ask in writing: “If you obtain an expert report and then decide not to proceed, who bears the cost of that report?” Get the answer in writing before you authorise any disbursements.

Actionable Takeaways

1. A firm’s refusal is a business decision based on quantum, insurance, and causation—not a verdict on your injury’s legitimacy.
2. Request a written reason for the refusal under the Law Society’s Guide on Client Care; this letter helps you identify the real obstacle.
3. Check the limitation period under Cap. 347 immediately—do not let time run while you search for a new firm.
4. Prepare a one-page case summary with medical evidence before approaching multiple firms to improve your acceptance rate.
5. If you cannot afford disbursements, consider Legal Aid under Cap. 91, which covers personal injury claims for eligible applicants.