ACHIEVE GOAL HOLDINGS LTD v. ZHONG XIN ORE-MATERIAL HOLDING CO LTD

ACHIEVE GOAL HOLDINGS LTD v. ZHONG XIN ORE-MATERIAL HOLDING CO LTD

The court exercised its discretion to allow withdrawal of HCA 1284/2005 with costs to be in the cause of HCA 1987/2005 given the factual nexus and subsumption of issues; permitted withdrawal of the striking out summons with costs in the cause but allocated the wasted hearing costs to Clarigain and Bai Jun due to late withdrawal; ordered speedy trial with directions; allowed most amendments to the Defence to the Counterclaim except specified subparagraphs and particulars, awarding costs to Clarigain and Bai Jun; and directed an agreed framed statement under O.18 r.21(2) RHC that if para.92(e) is proved there was no injection of capital by Bai Jun.

Citation
ACHIEVE GOAL HOLDINGS LTD v. ZHONG XIN ORE-MATERIAL HOLDING CO LTD
Parties
Plaintiff (by Original Action) and 1st Defendant (by Counterclaim): Achieve Goal Holdings Limited; Defendant (by Original Action) and 5th Defendant (by Counterclaim): Zhong Xin Ore-Material Holding Company Limited; 1st Plaintiff (by Counterclaim): Clarigain Enterprises Limited; Plaintiff in HCA 1284/2005 and 2nd Plaintiff (by Counterclaim): Bai Jun Tian Cheng Limited; 2nd Defendant (by Counterclaim): Angola Group Holdings Limited; 3rd Defendant (by Counterclaim): Zhao Bing; 4th Defendant (by Counterclaim): Ng Chi Kong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 July 2008
Case Number
HCA1987/2005
Procedural Posture
Civil: Company Law Dispute Including Derivative Action and Counterclaim (related Actions HCA 1284/2005 and HCA 1987/2005) / Interlocutory: Hearings on Multiple Summonses, Orders and Directions (pre Trial Procedural Ruling)
Outcome
Interlocutory orders made granting withdrawals, allocating costs, directing speedy trial, allowing most amendments with exceptions, and framing a statement in lieu of further pleadings.
Legal Topics
Derivative Action, Authority to Sue, Striking Out, Amendment of Pleadings, Costs, Speedy Trial, Discontinuance
Source Language
EN
Company Law Civil Procedure Contract Equity Derivative Action Authority to Sue Striking Out Amendment of Pleadings +3 more

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Parties

Achieve Goal Holdings Limited

Plaintiff (by Original Action) and 1st Defendant (by Counterclaim)

Zhong Xin Ore-Material Holding Company Limited

Defendant (by Original Action) and 5th Defendant (by Counterclaim)

Clarigain Enterprises Limited

1st Plaintiff (by Counterclaim)

Bai Jun Tian Cheng Limited

Plaintiff in HCA 1284/2005 and 2nd Plaintiff (by Counterclaim)

Angola Group Holdings Limited

2nd Defendant (by Counterclaim)

Zhao Bing

3rd Defendant (by Counterclaim)

Ng Chi Kong

4th Defendant (by Counterclaim)

Procedural Posture

Civil: Company Law Dispute Including Derivative Action and Counterclaim (related Actions HCA 1284/2005 and HCA 1987/2005) / Interlocutory: Hearings on Multiple Summonses, Orders and Directions (pre Trial Procedural Ruling)

Legal Issues

  1. 1 Whether costs on discontinuance should be in the cause or on an indemnity basis
  2. 2 Whether Zhong Xin has authority to bring the counterclaim (authority to sue) and whether parts of the defence and counterclaim should be struck out
  3. 3 Whether the striking out summons could be withdrawn and allocation of wasted hearing costs

Ratio Decidendi

The court exercised its discretion to allow withdrawal of HCA 1284/2005 with costs to be in the cause of HCA 1987/2005 given the factual nexus and subsumption of issues; permitted withdrawal of the striking out summons with costs in the cause but allocated the wasted hearing costs to Clarigain and Bai Jun due to late withdrawal; ordered speedy trial with directions; allowed most amendments to the Defence to the Counterclaim except specified subparagraphs and particulars, awarding costs to Clarigain and Bai Jun; and directed an agreed framed statement under O.18 r.21(2) RHC that if para.92(e) is proved there was no injection of capital by Bai Jun.

Court Disposition

Interlocutory orders made granting withdrawals, allocating costs, directing speedy trial, allowing most amendments with exceptions, and framing a statement in lieu of further pleadings.

Orders

  • Leave to withdraw HCA 1284/2005 with costs in the cause in HCA 1987/2005
  • Leave to withdraw the striking out summons with costs in the cause save that the costs of leading counsel for the hearing on 26 June 2008 be to Clarigain and Bai Jun in any event and there be no order as to costs for Achieve Gold and Ng