GOOD FAITH PROPERTIES LTD AND OTHERS v. CIBEAN DEVELOPMENT CO LTD

GOOD FAITH PROPERTIES LTD AND OTHERS v. CIBEAN DEVELOPMENT CO LTD

Applying the compensation approach, the respondent was entitled to costs for the reasonable steps and other applications but its reliance on Mr Lai's valuation evidence was partly unreasonable and caused substantial wasted time; therefore award respondent 85% of its costs (i.e. reduce respondent's recoverable costs by 15%) and award interest from 11 November 2013, taxed with certificate for 2 counsel.

Citation
GOOD FAITH PROPERTIES LTD AND OTHERS v. CIBEAN DEVELOPMENT CO LTD
Parties
Majority Owners / Claimants: Applicants; Minority Owner / Defendant: Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
12 June 2015
Case Number
LDCS42000/2011
Procedural Posture
Compulsory Sale Proceedings Under Cap 545 / Remitted Costs Hearing and Decision on Variation of Costs Order Nisi
Outcome
Respondent awarded 85% of its costs; interest at judgment rate to run from 11 November 2013; costs to be taxed with certificate for 2 counsel on party and party basis at High Court scale.
Legal Topics
Compensation Approach to Costs, Compulsory Sale, Reasonable Steps Under S 4(2)(b) Cap 545, Valuation Evidence, Costs Sanctions, Counsel Certificate
Source Language
EN
Property Law Land Resumption Costs Law Compensation Approach to Costs Compulsory Sale Reasonable Steps Under S 4(2)(b) Cap 545 Valuation Evidence Costs Sanctions +1 more

Case Brief

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Parties

Applicants

Majority Owners / Claimants

Respondent

Minority Owner / Defendant

Procedural Posture

Compulsory Sale Proceedings Under Cap 545 / Remitted Costs Hearing and Decision on Variation of Costs Order Nisi

Legal Issues

  1. 1 Whether the compensation approach applicable to land resumption cases applies to costs in compulsory sale proceedings under Cap 545
  2. 2 Whether the respondent was entitled to costs despite unsuccessful legal argument on reasonable steps
  3. 3 Whether the respondent's valuation evidence (Mr Lai) was so unreasonable as to attract a costs sanction or partial disallowance

Ratio Decidendi

Applying the compensation approach, the respondent was entitled to costs for the reasonable steps and other applications but its reliance on Mr Lai's valuation evidence was partly unreasonable and caused substantial wasted time; therefore award respondent 85% of its costs (i.e. reduce respondent's recoverable costs by 15%) and award interest from 11 November 2013, taxed with certificate for 2 counsel.

Court Disposition

Respondent awarded 85% of its costs; interest at judgment rate to run from 11 November 2013; costs to be taxed with certificate for 2 counsel on party and party basis at High Court scale.

Orders

  • Respondent awarded 85% of its costs of the proceedings and costs of the application for variation of costs order nisi dated 31 May 2013 with interest at judgment rate to run from 11 November 2013.
  • Costs awarded to be taxed if not agreed, with certificate for 2 counsel on party and party basis at High Court scale.