KING MING DEVELOPMENT CO LTD AND OTHERS v. LEE KAM SHEUNG AND ANOTHER

KING MING DEVELOPMENT CO LTD AND OTHERS v. LEE KAM SHEUNG AND ANOTHER

The court held the plaintiffs have disclosed a cause of action in respect of the second type of injury under the principles in Heron International; the appeal is dismissed and costs are awarded to the plaintiffs, while any application to amend to pursue the first type of injury is a matter for the plaintiffs and does not affect the established cause of action for the second type.

Citation
KING MING DEVELOPMENT CO LTD AND OTHERS v. LEE KAM SHEUNG AND ANOTHER
Parties
Plaintiffs: 1st to 8th Plaintiffs; Defendants: 1st and 2nd Defendants
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 July 2009
Case Number
HCA2576/2008
Procedural Posture
Civil Appeal / Judgment on Appeal and Interlocutory Consent Directions
Outcome
Appeal dismissed with costs to the plaintiffs
Legal Topics
Derivative Action, Rule in Foss V. Harbottle, Right to Sue for Individual/company Injury, Discovery and Inspection, Witness Statements, Costs Taxation
Source Language
EN
Company Law Civil Procedure Equity Costs Derivative Action Rule in Foss V. Harbottle Right to Sue for Individual/company Injury Discovery and Inspection +2 more

Case Brief

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Parties

1st to 8th Plaintiffs

Plaintiffs

1st and 2nd Defendants

Defendants

Procedural Posture

Civil Appeal / Judgment on Appeal and Interlocutory Consent Directions

Legal Issues

  1. 1 Whether the plaintiffs have a right to sue for the second type of injury as distinct from the first type of injury
  2. 2 Whether the rule in Foss v. Harbottle bars the plaintiffs from suing for the first type of injury
  3. 3 Whether the appeal should be dismissed and what costs order is appropriate

Ratio Decidendi

The court held the plaintiffs have disclosed a cause of action in respect of the second type of injury under the principles in Heron International; the appeal is dismissed and costs are awarded to the plaintiffs, while any application to amend to pursue the first type of injury is a matter for the plaintiffs and does not affect the established cause of action for the second type.

Court Disposition

Appeal dismissed with costs to the plaintiffs

Orders

  • Appeal dismissed with costs to the plaintiffs to be taxed if not agreed
  • Further order in terms of the Draft Consent Order/Directions before the court as amended