張才奎所託管中國山水投資有限公司股份相關員工 AND OTHERS v. 張才奎 AND ANOTHER

張才奎所託管中國山水投資有限公司股份相關員工 AND OTHERS v. 張才奎 AND ANOTHER

Interim payment summons dismissed because the Receivers had been placed in funds amounting to over 60% of their claimed fees and expenses and had not shown justification for further interim payment; SH plaintiffs' summons granted in part — Receivers must provide a revised, task‑grouped, single‑event line‑item bill, disclose bills issued to CSI and CSCG and any apportionment policy, and account for time where tasks involved multiple capacities; SH plaintiffs may then file objections and assessment will proceed before the Master.

Citation
[2021] HKCFI 893
Parties
Plaintiffs: Relevant employees whose shares in China Shanshui Investment Company Limited were held by ZHANG CAIKUI on trust (1st Group); Plaintiffs: Relevant employees whose shares in China Shanshui Investment Company Limited were held by LI YANMIN on trust (2nd Group); 1st Defendant: ZHANG CAIKUI; 2nd Defendant: LI YANMIN; Receivers / Applicants: Ernst & Young Transactions Ltd (Receivers: Liu Yiu Keung Stephen; Yen Ching Wai David; Koo Chi Sum)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 April 2021
Case Number
HCA623/2015
Procedural Posture
Receivership Remuneration Assessment and Interim Payment Applications (consolidated Proceedings) / Chambers Decision on Two Summonses (interim Payment and Disclosure/taxation Summonses)
Outcome
Receivers' interim payment summons dismissed; SH plaintiffs' summons for further particulars and disclosure granted in part; costs orders made as to taxation and percentages.
Legal Topics
Receiver Remuneration, Interim Payment on Account, Assessment of Costs, Disclosure of Supporting Bills and Documents, Fiduciary Duties and Apportionment of Time
Source Language
EN
Equity Trusts Civil Procedure Insolvency / Receivership Costs and Taxation Receiver Remuneration Interim Payment on Account Assessment of Costs +2 more

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Parties

Relevant employees whose shares in China Shanshui Investment Company Limited were held by ZHANG CAIKUI on trust (1st Group)

Plaintiffs

Relevant employees whose shares in China Shanshui Investment Company Limited were held by LI YANMIN on trust (2nd Group)

Plaintiffs

ZHANG CAIKUI

1st Defendant

LI YANMIN

2nd Defendant

Ernst & Young Transactions Ltd (Receivers: Liu Yiu Keung Stephen; Yen Ching Wai David; Koo Chi Sum)

Receivers / Applicants

Procedural Posture

Receivership Remuneration Assessment and Interim Payment Applications (consolidated Proceedings) / Chambers Decision on Two Summonses (interim Payment and Disclosure/taxation Summonses)

Legal Issues

  1. 1 Whether the court should order interim payment of the Receivers' remuneration and disbursements
  2. 2 Whether the Receivers must provide a more detailed bill of costs and disclose underlying books and papers including bills to CSI and CSCG
  3. 3 Whether and how time/costs must be apportioned where Receivers acted in multiple capacities (receiver, CSI director, CSCG director/consultant)

Ratio Decidendi

Interim payment summons dismissed because the Receivers had been placed in funds amounting to over 60% of their claimed fees and expenses and had not shown justification for further interim payment; SH plaintiffs' summons granted in part — Receivers must provide a revised, task‑grouped, single‑event line‑item bill, disclose bills issued to CSI and CSCG and any apportionment policy, and account for time where tasks involved multiple capacities; SH plaintiffs may then file objections and assessment will proceed before the Master.

Court Disposition

Receivers' interim payment summons dismissed; SH plaintiffs' summons for further particulars and disclosure granted in part; costs orders made as to taxation and percentages.

Orders

  • Interim payment summons dismissed; order nisi that the Receivers pay the SH plaintiffs' costs of the interim payment summons to be taxed if not agreed
  • The Receivers do within 42 days file and serve on the SH plaintiffs a revised bill of costs disclosing the tasks for which particular line items were done, organised so line items can be grouped by tasks, and containing, as far as practicable, single billable events in each line entry