ERIC EDWARD HOTUNG AND ANOTHER v. HO YUEN KI AND OTHERS

ERIC EDWARD HOTUNG AND ANOTHER v. HO YUEN KI AND OTHERS

Although jurisdictional thresholds for security for costs were met (1st plaintiff treated as nominal for Order 23 r1(b); jurisdiction under s905 for 2nd plaintiff), the judge exercised discretion against ordering further security for costs because the overall interest of justice favoured allowing a trial on the merits given the charitable trust interest, late disclosure considerations, and prejudice to plaintiffs; therefore no further security ordered and costs of the applications reserved.

Citation
ERIC EDWARD HOTUNG AND ANOTHER v. HO YUEN KI AND OTHERS
Parties
1st Plaintiff: Eric Edward Hotung; 2nd Plaintiff: Lare Sare Limited; 1st Defendant: Ho Yuen Ki; 2nd Defendant: Moon Valley Inc; 3rd Defendant: Mak Shun Ming Michael (aka Michael Eric Alexander Bosman Hotung)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 May 2016
Case Number
HCA857/2011
Procedural Posture
Civil (trust Dispute) / Trial Underway; Interlocutory Applications for Security for Costs Heard (decision Delivered During Trial)
Outcome
Applications for further security for costs refused; no further security ordered; costs of these applications reserved to be dealt with at end of trial; plaintiffs to amend pleadings as necessary and to notify timing of amendments.
Legal Topics
Security for Costs, Nominal Plaintiff, Equitable Assignment, Disclosure, Charitable Trust Protector, Discretionary Relief
Source Language
EN
Civil Procedure Trusts Companies Law Charity Law Costs Security for Costs Nominal Plaintiff Equitable Assignment +3 more

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Parties

Eric Edward Hotung

1st Plaintiff

Lare Sare Limited

2nd Plaintiff

Ho Yuen Ki

1st Defendant

Moon Valley Inc

2nd Defendant

Mak Shun Ming Michael (aka Michael Eric Alexander Bosman Hotung)

3rd Defendant

Procedural Posture

Civil (trust Dispute) / Trial Underway; Interlocutory Applications for Security for Costs Heard (decision Delivered During Trial)

Legal Issues

  1. 1 Whether the 1st and 2nd plaintiffs are to be treated as nominal plaintiffs for security for costs purposes
  2. 2 Whether there is reason to believe the plaintiffs will be unable to pay the defendants costs if ordered to do so
  3. 3 Whether the court should exercise its discretion to order security for costs having regard to delay, prejudice and the public interest in charitable trust litigation

Ratio Decidendi

Although jurisdictional thresholds for security for costs were met (1st plaintiff treated as nominal for Order 23 r1(b); jurisdiction under s905 for 2nd plaintiff), the judge exercised discretion against ordering further security for costs because the overall interest of justice favoured allowing a trial on the merits given the charitable trust interest, late disclosure considerations, and prejudice to plaintiffs; therefore no further security ordered and costs of the applications reserved.

Court Disposition

Applications for further security for costs refused; no further security ordered; costs of these applications reserved to be dealt with at end of trial; plaintiffs to amend pleadings as necessary and to notify timing of amendments.

Orders

  • No order that the plaintiffs provide any further security for costs
  • Costs of the security-for-costs applications to be decided at the end of the trial