CHINA MEDICAL TECHNOLOGIES, INC. (IN LIQUIDATION) AND OTHERS v. WU XIAODONG AND OTHERS

CHINA MEDICAL TECHNOLOGIES, INC. (IN LIQUIDATION) AND OTHERS v. WU XIAODONG AND OTHERS

The court refused to order indemnity or common fund costs because the Plaintiffs' conduct, while involving a procedurally irregular and unjustified ex parte injunction, did not present special or unusual features warranting indemnity costs; the Continuation Summonses were not entirely devoid of merit; delay and warning letters were relevant but insufficient to elevate costs beyond party and party; accordingly the Summons to vary the costs order nisi was dismissed except that costs of and occasioned by the Plaintiffs' Continuation Summonses previously reserved (if any) should be to the 2nd Defendant to be taxed if not agreed and paid forthwith with certificates for counsel as specified,...

Citation
[2019] HKCFI 1809
Parties
1st Plaintiff (in Liquidation): CHINA MEDICAL TECHNOLOGIES, INC.; 2nd Plaintiff: CMED TECHNOLOGIES LTD; 3rd Plaintiff (joint and Several Liquidator): COSIMO BORRELLI; 3rd Plaintiff (joint and Several Liquidator): YUEN LAI YEE; 1st Defendant: WU XIAODONG; 2nd Defendant: SAMSON TSANG TAK YUNG; 3rd Defendant: CHEN ZHONG; 5th Defendant (in His Personal Capacity and Formerly Trading as Kam Hing Trading Co): CHONG WING HIP; 13th Defendant (in Her Personal Capacity and as Trustee): BI XIAO QIONG; 4th, 6th 12th and 14th 23rd Defendants: Other defendants listed in the Schedule to the Amended Writ of Summons
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 July 2019
Case Number
HCA3391/2016
Procedural Posture
Civil Action Concerning Injunctions and Costs / Ruling on Costs (summons to Vary Costs Order Nisi)
Outcome
Summons dismissed except as to costs: costs of and occasioned by the Plaintiffs' Continuation Summonses previously reserved (if any) to be to the 2nd Defendant to be taxed if not agreed and paid by the Plaintiffs forthwith with certificate for 1 or 2 counsel as appropriate; costs of and occasioned by the Summons to...
Legal Topics
Costs Order, Indemnity Costs, Party and Party Costs, Ex Parte Injunction, Asset Dissipation, Continuation Summons, Taxation
Source Language
EN
Civil Procedure Costs Injunctions Equity Commercial Fraud Costs Order Indemnity Costs Party and Party Costs +4 more

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Parties

CHINA MEDICAL TECHNOLOGIES, INC.

1st Plaintiff (in Liquidation)

CMED TECHNOLOGIES LTD

2nd Plaintiff

COSIMO BORRELLI

3rd Plaintiff (joint and Several Liquidator)

YUEN LAI YEE

3rd Plaintiff (joint and Several Liquidator)

WU XIAODONG

1st Defendant

SAMSON TSANG TAK YUNG

2nd Defendant

CHEN ZHONG

3rd Defendant

CHONG WING HIP

5th Defendant (in His Personal Capacity and Formerly Trading as Kam Hing Trading Co)

BI XIAO QIONG

13th Defendant (in Her Personal Capacity and as Trustee)

Other defendants listed in the Schedule to the Amended Writ of Summons

4th, 6th 12th and 14th 23rd Defendants

Procedural Posture

Civil Action Concerning Injunctions and Costs / Ruling on Costs (summons to Vary Costs Order Nisi)

Legal Issues

  1. 1 Whether indemnity or common fund costs should be awarded against the Plaintiffs
  2. 2 Whether the Plaintiffs made full and frank disclosure at the ex parte injunction hearing
  3. 3 Whether there was a real risk of dissipation of assets warranting continued injunction

Ratio Decidendi

The court refused to order indemnity or common fund costs because the Plaintiffs' conduct, while involving a procedurally irregular and unjustified ex parte injunction, did not present special or unusual features warranting indemnity costs; the Continuation Summonses were not entirely devoid of merit; delay and warning letters were relevant but insufficient to elevate costs beyond party and party; accordingly the Summons to vary the costs order nisi was dismissed except that costs of and occasioned by the Plaintiffs' Continuation Summonses previously reserved (if any) should be to the 2nd Defendant to be taxed if not agreed and paid forthwith with certificates for counsel as specified,...

Court Disposition

Summons dismissed except as to costs: costs of and occasioned by the Plaintiffs' Continuation Summonses previously reserved (if any) to be to the 2nd Defendant to be taxed if not agreed and paid by the Plaintiffs forthwith with certificate for 1 or 2 counsel as appropriate; costs of and occasioned by the Summons to...

Orders

  • Summons dated 4 June 2019 dismissed except that all costs of and occasioned by the Plaintiffs' Continuation Summonses previously reserved, if any, shall be to the 2nd Defendant to be taxed if not agreed and paid by the Plaintiffs forthwith, with certificate for 1 or 2 counsel as the case may be.
  • There shall be a costs order nisi that costs of and occasioned by the Summons be to the Plaintiffs, to be taxed if not agreed, and paid by the 2nd Defendant forthwith, certificate for 1 counsel.