CHEUNG WAI KAR 對 DRAGON KINGS DEVELOPMENT LTD t/a FAMOUS (DRAGON KINGS) RESTAURANT

CHEUNG WAI KAR 對 DRAGON KINGS DEVELOPMENT LTD t/a FAMOUS (DRAGON KINGS) RESTAURANT

The court granted the respondent's application for security for costs because (a) the appellant had not provided financial disclosure and the available evidence indicated the appellant was likely impecunious and unable to meet a costs order, and (b) the appeal did not present sufficient prospects to outweigh the...

Source-derived case information.

Citation
[2020] HKCA 718
Parties
Appellant: CHEUNG WAI KAR; Respondent: DRAGON KINGS DEVELOPMENT LIMITED trading as FAMOUS (DRAGON KINGS) RESTAURANT
Court
Court of Appeal
Jurisdiction
Hong Kong
Judgment Date
24 August 2020
Case Number
CACV27/2020
Procedural Posture
Civil Appeal / Security for Costs Application
Outcome
Application granted in part: security for costs ordered, appeal stayed until payment, failure to pay to result in dismissal; application costs awarded to respondent
Legal Topics
Security for Costs, Contributory Negligence, Damages, Costs Orders, Stay of Proceedings
Source Language
ch
Civil Procedure Tort Personal Injury Appeals Security for Costs Contributory Negligence Damages Costs Orders +1 more

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Parties

CHEUNG WAI KAR

Appellant

DRAGON KINGS DEVELOPMENT LIMITED trading as FAMOUS (DRAGON KINGS) RESTAURANT

Respondent

Procedural Posture

Civil Appeal / Security for Costs Application

  1. 1 Whether the court should order security for costs under Order 59 r.10(5) of the High Court Rules
  2. 2 Whether the appellant is impecunious and thus likely to cause difficulty in enforcement of any costs order
  3. 3 Whether the merits of the appeal justify dispensing with security for costs

Ratio Decidendi

The court granted the respondent's application for security for costs because (a) the appellant had not provided financial disclosure and the available evidence indicated the appellant was likely impecunious and unable to meet a costs order, and (b) the appeal did not present sufficient prospects to outweigh the need for security. Accordingly the appellant was ordered to deposit $140,000 within 42 days, the appeal was stayed until payment and failure to pay would lead to immediate dismissal of the appeal and an order for payment of the respondent's costs; the application costs were assessed at $40,000 payable by the appellant.

Court Disposition

Application granted in part: security for costs ordered, appeal stayed until payment, failure to pay to result in dismissal; application costs awarded to respondent

Orders

  • Appellant to deposit $140,000 in court within 42 days as security for the respondent's costs in the appeal
  • All proceedings in the appeal stayed until the security is paid and a notice is served on the Civil Appeals Registry and the respondent on the same day as payment