DARACH E. HAUGHEY AND ANOTHER v. LAM MUI AND OTHERS

D2 was the true winner of the 2023 Summons; the Administrators were not neutral and, having failed to accept Calderbank offers, must bear costs on an indemnity basis; the Administrators are disentitled from recovering those legal costs and disbursements from the Estate; leave to appeal is refused because the proposed grounds have no reasonable prospect of success.

Citation: [2024] HKCFI 2222
Parties: Joint and Several Administrator of the Estate (plaintiff): Darach E. Haughey; Joint and Several Administrator of the Estate (plaintiff): Lai Kar Yan (Derek); 1st Defendant (in Her Own Capacity and in the Capacity as the Administratrix of Chiu Shuet Lan): Lam Mui; 2nd Defendant (as the Administratrix of Chiu Sinn Kei): Chiu Hiu Hung; 3rd Defendant: Chiu Sin Kuen; 4th Defendant (in His Own Capacity and in the Capacity as the Administrator of Chiu Shuet Lan): Chiu Anthony Sin Ka; 5th Defendant: Chiu Hing Sheung; 6th Defendant: Chiu Shuet Fei
Court: Court of First Instance
Jurisdiction: Hong Kong
Judgment Date: 26 August 2024
Case Number: HCMP1593/2014
Procedural Posture: Miscellaneous Proceedings Under Order 85 RHC (administration of Estate) / Applications: Variation of Costs Order Nisi (d2) and Leave to Appeal (administrators)
Outcome: Variation of costs order nisi granted in favour of the 2nd Defendant; Leave to appeal refused for the Administrators; indemnity costs awarded to D2 against the Administrators
Legal Topics: Administration of Estate, Costs Order Nisi, Calderbank Offers and Indemnity Costs, Statutory Cap on Fiduciary Remuneration, Disbursements Versus Remuneration, Construction of Court Orders
Source Language: EN

Trusts and Estates Civil Procedure Costs and Costs Assessment Appeal/leave to Appeal Administration of Estate Costs Order Nisi Calderbank Offers and Indemnity Costs Statutory Cap on Fiduciary Remuneration +2 more

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Parties

Darach E. Haughey

Joint and Several Administrator of the Estate (plaintiff)

Lai Kar Yan (Derek)

Joint and Several Administrator of the Estate (plaintiff)

Lam Mui

1st Defendant (in Her Own Capacity and in the Capacity as the Administratrix of Chiu Shuet Lan)

Chiu Hiu Hung

2nd Defendant (as the Administratrix of Chiu Sinn Kei)

Chiu Sin Kuen

3rd Defendant

Chiu Anthony Sin Ka

4th Defendant (in His Own Capacity and in the Capacity as the Administrator of Chiu Shuet Lan)

Chiu Hing Sheung

5th Defendant

Chiu Shuet Fei

6th Defendant

Procedural Posture

Miscellaneous Proceedings Under Order 85 RHC (administration of Estate) / Applications: Variation of Costs Order Nisi (d2) and Leave to Appeal (administrators)

Legal Issues

1 Whether the costs of the 2023 Summons and Variation Summons should be borne by the Administrators or paid out of the Estate
2 Whether D2 was the true winner entitled to costs
3 Whether unaccepted Calderbank offers justify indemnity costs against the Administrators

Ratio Decidendi

Court Disposition

Variation of costs order nisi granted in favour of the 2nd Defendant; Leave to appeal refused for the Administrators; indemnity costs awarded to D2 against the Administrators

Orders

Administrators to pay costs of the 2023 Summons to the 2nd Defendant, summarily assessed on indemnity basis at HKD 450000
Administrators disentitled from being paid any of their legal costs and disbursements of and incidental to the 2023 Summons out of the Estate