CHEN MEI HUAN v. SILVER FAITH HOLDINGS LTD AND OTHERS

CHEN MEI HUAN v. SILVER FAITH HOLDINGS LTD AND OTHERS

Despite some delay, it was just in all the circumstances to order Chen (a foreign plaintiff ordinarily resident in Macau with contested beneficial ownership and existing substantial judgment exposure) to provide security for costs up to conclusion of the proceedings; the appropriate quantum for prospective PTR/trial costs on the material before the court was fixed at HK$1,600,000, payment within 35 days, and until payment further proceedings against the 2nd and 3rd respondents are stayed (subject to Companies Judge); costs follow the event and a costs order nisi and summary assessment directions were made.

Citation
CHEN MEI HUAN v. SILVER FAITH HOLDINGS LTD AND OTHERS
Parties
Petitioner: Chen Mei Huan; 1st Respondent: Silver Faith Holdings Limited; 2nd Respondent: Ng Man Sun; 3rd Respondent: Ng Wai Yee
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 October 2017
Case Number
HCCW111/2014
Procedural Posture
Companies (winding Up) Proceedings No.111 of 2014 / Summons for Security for Costs (interlocutory Hearing)
Outcome
Summons for security for costs granted in part
Legal Topics
Security for Costs, Winding Up, Mareva Injunction, Enforcement of Costs, Delay and Case Management
Source Language
EN
Company Law Insolvency Civil Procedure Private International Law Security for Costs Winding Up Mareva Injunction Enforcement of Costs +1 more

Case Brief

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Parties

Chen Mei Huan

Petitioner

Silver Faith Holdings Limited

1st Respondent

Ng Man Sun

2nd Respondent

Ng Wai Yee

3rd Respondent

Procedural Posture

Companies (winding Up) Proceedings No.111 of 2014 / Summons for Security for Costs (interlocutory Hearing)

Legal Issues

  1. 1 Whether a foreign plaintiff ordinarily resident outside Hong Kong should be ordered to provide security for costs
  2. 2 Whether the defendant's delay in applying for security for costs defeats the application
  3. 3 Appropriate quantum of security for prospective trial/PTR costs

Ratio Decidendi

Despite some delay, it was just in all the circumstances to order Chen (a foreign plaintiff ordinarily resident in Macau with contested beneficial ownership and existing substantial judgment exposure) to provide security for costs up to conclusion of the proceedings; the appropriate quantum for prospective PTR/trial costs on the material before the court was fixed at HK$1,600,000, payment within 35 days, and until payment further proceedings against the 2nd and 3rd respondents are stayed (subject to Companies Judge); costs follow the event and a costs order nisi and summary assessment directions were made.

Court Disposition

Summons for security for costs granted in part

Orders

  • Petitioner Chen Mei Huan to pay into court HK$1,600,000 as security for the 2nd and 3rd respondents' costs up to the conclusion of the proceedings within 35 days from date of order
  • Until such security is given, all further proceedings against the 2nd and 3rd respondents are stayed, subject to any order of the Companies Judge