KWAN KAM PUI v. 馮文 AND OTHERS

KWAN KAM PUI v. 馮文 AND OTHERS

The court held that the ECAO does not curtail the court's wide discretion under s52A of the High Court Ordinance to order costs against parties or interveners. When the ECA Fund Board elects to join proceedings and disputes liability and quantum it may be ordered to pay the usual costs of the action (including, in appropriate cases, costs incurred before its joinder); where the Board intervenes solely to contest quantum the Board should ordinarily be ordered to pay costs from the date of its joinder. However, where parties have entered a valid settlement that provides no order as to costs the court will give effect to that settlement absent vitiating factors.

Citation
KWAN KAM PUI v. 馮文 AND OTHERS
Parties
2nd Defendant: AURANT LIMITED; 3rd Defendant: Employees Compensation Assistance Fund Board
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 May 2014
Case Number
HCPI18/2012
Procedural Posture
Personal Injury/common Law Damages and Employees Compensation (relief Payment) / Post Settlement Approval and Costs Hearing Concerning Joinder/intervention and Costs Jurisdiction
Outcome
Order made in terms of the parties' settlement summons of 28 November 2013; court declined to rescind the settlement; court confirmed it has jurisdiction to order costs against the ECA Fund Board in appropriate circumstances but did not make such an order in this case due to the settlement; specific case-management...
Legal Topics
Intervention/joinder (s25 a Ecao), Relief Payment Under ECAO (s20 a S20 G), Court's Discretion as to Costs (s52 a High Court Ordinance), Exclusion of Interest and Costs From Relief Payment (s20 B(3)), Case Management of Undefended Actions
Source Language
EN
Employment Compensation Law Civil Procedure Costs Law Statutory Interpretation Personal Injury Law Intervention/joinder (s25 a Ecao) Relief Payment Under ECAO (s20 a S20 G) Court's Discretion as to Costs (s52 a High Court Ordinance) +2 more

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Parties

AURANT LIMITED

2nd Defendant

Employees Compensation Assistance Fund Board

3rd Defendant

Procedural Posture

Personal Injury/common Law Damages and Employees Compensation (relief Payment) / Post Settlement Approval and Costs Hearing Concerning Joinder/intervention and Costs Jurisdiction

Legal Issues

  1. 1 Whether the court has jurisdiction to order costs against the ECA Fund Board when it intervenes in common law damage proceedings
  2. 2 Whether the court may order the Board to pay costs incurred before the Board's intervention and in what circumstances
  3. 3 Whether legislative provisions in the ECAO curtail the court's general costs jurisdiction under s52A High Court Ordinance

Ratio Decidendi

The court held that the ECAO does not curtail the court's wide discretion under s52A of the High Court Ordinance to order costs against parties or interveners. When the ECA Fund Board elects to join proceedings and disputes liability and quantum it may be ordered to pay the usual costs of the action (including, in appropriate cases, costs incurred before its joinder); where the Board intervenes solely to contest quantum the Board should ordinarily be ordered to pay costs from the date of its joinder. However, where parties have entered a valid settlement that provides no order as to costs the court will give effect to that settlement absent vitiating factors.

Court Disposition

Order made in terms of the parties' settlement summons of 28 November 2013; court declined to rescind the settlement; court confirmed it has jurisdiction to order costs against the ECA Fund Board in appropriate circumstances but did not make such an order in this case due to the settlement; specific case-management...

Orders

  • Order in terms of the summons dated 28 November 2013, removing the action from the warned list and giving effect to settlement
  • ECA Fund Board to give credit for prior EC payment of HKD 1,050,000 and pay balance HKD 800,000 within 28 days as part of settlement (total settlement HKD 1,850,000 inclusive of interest)