SUN LEGEND INVESTMENTS LTD v. HO YUK WAH, DAVID AND OTHERS

Sun Legend, as assignee, could not be made liable on the Firm's counterclaim absent an equitable burden or an assignee's assumption of liability; substitution by procedure did not change substantive law; accordingly Sun Legend entitled to judgment on the counterclaim but costs are limited to pre-trial procedural steps, and NWD's costs on the counterclaims are limited to 20% to reflect its proportion of liability and trial time.

Citation: SUN LEGEND INVESTMENTS LTD v. HO YUK WAH, DAVID AND OTHERS
Parties: Plaintiff (hca1212); Assignee of Original Plaintiffs (dongguan): Sun Legend Investments Limited; Defendant by Counterclaim (hca1212 & Hca2915); Interested Corporate Party: New World Development Co Ltd; Plaintiff (hca2915); Original Developer Claimant: Beijing Chongwen-New World Properties Development Company Limited; Plaintiff (hca2915); Original Developer Claimant: China New World Electronics Limited; 1st Defendant (hca1212 & Hca2915); 1st Plaintiff by Counterclaim: Ho Yuk Wah, David; 2nd Defendant (hca1212 & Hca2915); 2nd Plaintiff by Counterclaim: Ho Yuk Kuen, Jade; 3rd Defendant (hca1212 & Hca2915); 3rd Plaintiff by Counterclaim: Chan Man Ho, Brian; 4th Defendant (hca1212); 4th Plaintiff by Counterclaim; Solicitors Who Applied Set Off: David Y W Ho & Co (a Firm)
Court: Court of First Instance
Jurisdiction: Hong Kong
Judgment Date: 2 February 2010
Case Number: HCA1212/2002
Procedural Posture: Consolidated Civil Actions for Recovery of Sums and Counterclaims for Solicitors' Fees / Decision on Costs (post Trial)
Outcome: Costs orders nisi made absolute with specific apportionments: Firm awarded costs on claim; Sun Legend awarded limited costs on counterclaim; NWD awarded 20% of counterclaim costs.
Legal Topics: Assignment, Counterclaim, Set Off, Substitution of Parties, Solicitors Accounts Rules
Source Language: EN

Civil Procedure Equity Contract Costs Restitution Assignment Counterclaim Set Off +2 more

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Parties

Sun Legend Investments Limited

Plaintiff (hca1212); Assignee of Original Plaintiffs (dongguan)

New World Development Co Ltd

Defendant by Counterclaim (hca1212 & Hca2915); Interested Corporate Party

Beijing Chongwen-New World Properties Development Company Limited

Plaintiff (hca2915); Original Developer Claimant

China New World Electronics Limited

Plaintiff (hca2915); Original Developer Claimant

Ho Yuk Wah, David

1st Defendant (hca1212 & Hca2915); 1st Plaintiff by Counterclaim

Ho Yuk Kuen, Jade

2nd Defendant (hca1212 & Hca2915); 2nd Plaintiff by Counterclaim

Chan Man Ho, Brian

3rd Defendant (hca1212 & Hca2915); 3rd Plaintiff by Counterclaim

David Y W Ho & Co (a Firm)

4th Defendant (hca1212); 4th Plaintiff by Counterclaim; Solicitors Who Applied Set Off

Procedural Posture

Consolidated Civil Actions for Recovery of Sums and Counterclaims for Solicitors' Fees / Decision on Costs (post Trial)

Legal Issues

1 Whether an assignee (Sun Legend) is liable on a counterclaim for debts of the assignor
2 Whether substitution of parties under O 15 r 7 renders an assignee liable for burdens of the assignor
3 Whether costs on counterclaims should be apportioned between NWD and the Firm and on what basis

Ratio Decidendi

Court Disposition

Costs orders nisi made absolute with specific apportionments: Firm awarded costs on claim; Sun Legend awarded limited costs on counterclaim; NWD awarded 20% of counterclaim costs.

Orders

The Firm to have its costs of both actions on a party and party basis (costs on the claim).
Sun Legend entitled to judgment on the counterclaim in the Dongguan action and is entitled to costs of the counterclaim only to the date upon which the defendant's Hearsay Notice was filed; those costs to be taxed on a party and party basis.