LIU TIEH CHING BRANDON (also known as LAU TIT SHING) v. LIU JU CHING AND OTHERS

LIU TIEH CHING BRANDON (also known as LAU TIT SHING) v. LIU JU CHING AND OTHERS

Because the petitioner did not file evidence in opposition and the validation order was agreed, and because the limited pre-application requests did not justify departing from the normal practice, the court applied the normal costs order: the company's costs of the validation application are to be paid out of the company's assets and the petitioner's costs are to be costs in the cause; the company must pay the petitioner's costs of the determination summarily assessed at HK$145,000 forthwith.

Citation
[2020] HKCFI 3176
Parties
Petitioner: LIU TIEH CHING BRANDON (also known as LAU TIT SHING); 1st Respondent: LIU JU CHING; 2nd Respondent: LIU YIU CHING; 3rd Respondent: LING SIU KWONG; 4th Respondent: LIU SHEN PO; 5th Respondent: LIU HAO TSING EDUCATION FOUNDATION LIMITED; 6th Respondent (company): OVERSEAS ASSOCIATES LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 December 2020
Case Number
HCCW109/2019
Procedural Posture
Companies Winding Up Petition and Validation Application Under S182 Cap 32 / Decision on Costs Following Agreement to Validation Order
Outcome
Validation order had been agreed; costs ordered in favour of the petitioner for the costs determination and otherwise the normal costs order applied
Legal Topics
Validation Order, Unfair Prejudice/winding Up Petition, Costs Allocation, Disclosure and Pre Application Correspondence
Source Language
EN
Company Law Civil Procedure Costs Validation Order Unfair Prejudice/winding Up Petition Costs Allocation Disclosure and Pre Application Correspondence

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Parties

LIU TIEH CHING BRANDON (also known as LAU TIT SHING)

Petitioner

LIU JU CHING

1st Respondent

LIU YIU CHING

2nd Respondent

LING SIU KWONG

3rd Respondent

LIU SHEN PO

4th Respondent

LIU HAO TSING EDUCATION FOUNDATION LIMITED

5th Respondent

OVERSEAS ASSOCIATES LIMITED

6th Respondent (company)

Procedural Posture

Companies Winding Up Petition and Validation Application Under S182 Cap 32 / Decision on Costs Following Agreement to Validation Order

Legal Issues

  1. 1 Whether to depart from the normal costs order for validation applications of a solvent company with ongoing business
  2. 2 Whether pre-application correspondence and document requests are recoverable as costs
  3. 3 Whether the petitioner should be ordered to pay the company's costs given alleged obstructive conduct

Ratio Decidendi

Because the petitioner did not file evidence in opposition and the validation order was agreed, and because the limited pre-application requests did not justify departing from the normal practice, the court applied the normal costs order: the company's costs of the validation application are to be paid out of the company's assets and the petitioner's costs are to be costs in the cause; the company must pay the petitioner's costs of the determination summarily assessed at HK$145,000 forthwith.

Court Disposition

Validation order had been agreed; costs ordered in favour of the petitioner for the costs determination and otherwise the normal costs order applied

Orders

  • The Company’s costs of the validation application to be paid out of the assets of the Company
  • The Petitioner’s costs to be costs in the cause of the petition