LEE CHI HANG AND OTHERS v. WELL DONE GARMENT FACTORY LTD AND ANOTHER

LEE CHI HANG AND OTHERS v. WELL DONE GARMENT FACTORY LTD AND ANOTHER

The summons to vary the costs order nisi is dismissed: the court held Ds succeeded on all issues except Diversion which occupied minimal time, therefore the 95% costs order in favour of Ds (subject to a 5% discount) is fair; the Costs Order Nisi is made absolute and the summons costs of HK$20,000 are ordered payable by Ps.

Citation
[2021] HKCFI 2288
Parties
1st Plaintiff (executors of the Estate of Wong Wai Chun): Lee Chi Hang and Wong Ying Kit Eddie; 2nd and 3rd Plaintiff (trading as Well Tai Trading Company): Wong Shiu Luen; 1st Defendant (also 2nd Plaintiff in Counterclaim/consolidated Proceedings): Well Done Garment Factory Limited; 2nd Defendant (also Defendant in HCA 913/2013): Hongkong Welldone Garment Factory Company Limited; 3rd Plaintiff (in Counterclaim) and 1st Defendant (in HCA 913/2013): Wong Ying Wai; Named/deceased Plaintiff (estate Involved): Wong Wai Chun; 3rd Defendant in HCA 913/2013: Wong Chun Kee Piece Goods Company Limited; 5th Defendant in HCA 913/2013: Wonder Step Limited; 6th Defendant in HCA 913/2013: Welldone Garment Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 August 2021
Case Number
HCA465/2013
Procedural Posture
Consolidated Civil/company/shareholder Actions Including Counterclaims and Loans Action / Post‑judgment Costs Application to Vary Costs Order Nisi (paper Disposal)
Outcome
Summons dismissed; Costs Order Nisi made absolute; costs of the summons ordered to be paid by plaintiffs to defendants forthwith.
Legal Topics
Costs Orders, Diversion Claim, Shareholder Dispute, Accounting for Profits, Taxation of Costs, Loans Action
Source Language
EN
Company Law Costs Equity Civil Procedure Costs Orders Diversion Claim Shareholder Dispute Accounting for Profits +2 more

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Parties

Lee Chi Hang and Wong Ying Kit Eddie

1st Plaintiff (executors of the Estate of Wong Wai Chun)

Wong Shiu Luen

2nd and 3rd Plaintiff (trading as Well Tai Trading Company)

Well Done Garment Factory Limited

1st Defendant (also 2nd Plaintiff in Counterclaim/consolidated Proceedings)

Hongkong Welldone Garment Factory Company Limited

2nd Defendant (also Defendant in HCA 913/2013)

Wong Ying Wai

3rd Plaintiff (in Counterclaim) and 1st Defendant (in HCA 913/2013)

Wong Wai Chun

Named/deceased Plaintiff (estate Involved)

Wong Chun Kee Piece Goods Company Limited

3rd Defendant in HCA 913/2013

Wonder Step Limited

5th Defendant in HCA 913/2013

Welldone Garment Company Limited

6th Defendant in HCA 913/2013

Procedural Posture

Consolidated Civil/company/shareholder Actions Including Counterclaims and Loans Action / Post‑judgment Costs Application to Vary Costs Order Nisi (paper Disposal)

Legal Issues

  1. 1 Whether to vary the costs order nisi from 95% to 85%
  2. 2 Whether plaintiffs should bear costs of all defendants including the New Co
  3. 3 Quantum of discount for plaintiffs' partial success on the Diversion claim

Ratio Decidendi

The summons to vary the costs order nisi is dismissed: the court held Ds succeeded on all issues except Diversion which occupied minimal time, therefore the 95% costs order in favour of Ds (subject to a 5% discount) is fair; the Costs Order Nisi is made absolute and the summons costs of HK$20,000 are ordered payable by Ps.

Court Disposition

Summons dismissed; Costs Order Nisi made absolute; costs of the summons ordered to be paid by plaintiffs to defendants forthwith.

Orders

  • Dismissed the plaintiffs' summons to vary the Costs Order Nisi from 95% to 85%
  • Made absolute the Costs Order Nisi: 95% of the costs (including reserved costs) payable by plaintiffs to defendants, to be taxed if not agreed