CHINA SHANSHUI CEMENT GROUP LTD AND OTHERS v. TIANRUI (INTERNATIONAL) HOLDING CO LTD AND OTHERS

CHINA SHANSHUI CEMENT GROUP LTD AND OTHERS v. TIANRUI (INTERNATIONAL) HOLDING CO LTD AND OTHERS

Indemnity costs were warranted because the 6/11/2020 Summons was issued and served late without adequate justification and was withdrawn after causing wasted costs and diversion of resources, and §§13 of the 14/8/2019 Summons were abandoned late and equivocally causing unnecessary expense; special and unusual features justified indemnity treatment for those parts, with an apportionment of 35% indemnity for §§13 and summary assessment payable forthwith with certificate for two counsel.

Citation
[2021] HKCFI 2745
Parties
1st Plaintiff: CHINA SHANSHUI CEMENT GROUP LIMITED; 2nd Plaintiff: CHINA SHANSHUI CEMENT GROUP (HONG KONG) COMPANY LIMITED; 3rd Plaintiff: CHINA PIONEER CEMENT (HONG KONG) COMPANY LIMITED; 4th Plaintiff: SHANDONG SHANSHUI CEMENT GROUP COMPANY LIMITED; 1st Defendant: TIANRUI (INTERNATIONAL) HOLDING COMPANY LIMITED; 2nd Defendant: TIANRUI GROUP COMPANY LIMITED; 3rd Defendant: STEPHEN LIU YIU KEUNG (廖耀強); 4th Defendant: DAVID YEN CHING WAI (閻正為); 5th Defendant: GODWIN HWA GUO WAI (華國威); 6th Defendant: CHONG CHA HWA (張家華); 7th Defendant: LI HEPING (李和平); 8th Defendant: LI LIUFA (李留法); 9th Defendant: CHEUNG YUK MING (張鈺明); 10th Defendant: NG QING HAI (黃清海); 11th Defendant: LI ZHIQIANG (李志強); 12th Defendant: HO MAN KAY, ANGELA (何文琪); 13th Defendant: LAW PUI CHEUNG (羅沛昌); 14th Defendant: WONG CHI KEUNG (黃之強); 15th Defendant: CHING SIU MING (程少明); 16th Defendant: LO CHUNG HING (盧重興); 17th Defendant: TSANG WING TAI (曾永泰); 18th Defendant: ERNST & YOUNG TRANSACTIONS LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 September 2021
Case Number
HCA548/2019
Procedural Posture
Civil Interlocutory (costs) / Decision on Costs Following Hearing (in Chambers)
Outcome
Costs awarded to Plaintiffs against the Tianrui Defendants: indemnity costs for the 6/11/2020 Summons; for the 14/8/2019 Summons 35% of costs indemnity (for §§13) and 65% party-and-party (for §§45); all costs summarily assessed and payable forthwith; certificate for two counsel granted.
Legal Topics
Indemnity Costs, Summary Assessment, Abandonment of Issues, Costs Apportionment, Leave to Adduce Foreign Pleadings, Service and Jurisdiction
Source Language
EN
Civil Procedure Costs Company Law Derivative Actions Service of Process Indemnity Costs Summary Assessment Abandonment of Issues +3 more

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Parties

CHINA SHANSHUI CEMENT GROUP LIMITED

1st Plaintiff

CHINA SHANSHUI CEMENT GROUP (HONG KONG) COMPANY LIMITED

2nd Plaintiff

CHINA PIONEER CEMENT (HONG KONG) COMPANY LIMITED

3rd Plaintiff

SHANDONG SHANSHUI CEMENT GROUP COMPANY LIMITED

4th Plaintiff

TIANRUI (INTERNATIONAL) HOLDING COMPANY LIMITED

1st Defendant

TIANRUI GROUP COMPANY LIMITED

2nd Defendant

STEPHEN LIU YIU KEUNG (廖耀強)

3rd Defendant

DAVID YEN CHING WAI (閻正為)

4th Defendant

GODWIN HWA GUO WAI (華國威)

5th Defendant

CHONG CHA HWA (張家華)

6th Defendant

LI HEPING (李和平)

7th Defendant

LI LIUFA (李留法)

8th Defendant

CHEUNG YUK MING (張鈺明)

9th Defendant

NG QING HAI (黃清海)

10th Defendant

LI ZHIQIANG (李志強)

11th Defendant

HO MAN KAY, ANGELA (何文琪)

12th Defendant

LAW PUI CHEUNG (羅沛昌)

13th Defendant

WONG CHI KEUNG (黃之強)

14th Defendant

CHING SIU MING (程少明)

15th Defendant

LO CHUNG HING (盧重興)

16th Defendant

TSANG WING TAI (曾永泰)

17th Defendant

ERNST & YOUNG TRANSACTIONS LIMITED

18th Defendant

Procedural Posture

Civil Interlocutory (costs) / Decision on Costs Following Hearing (in Chambers)

Legal Issues

  1. 1 Whether indemnity costs are warranted for the 6/11/2020 Summons due to lateness and withdrawal
  2. 2 Whether indemnity costs are warranted for part (§§13) of the 14/8/2019 Summons due to late and equivocal abandonment
  3. 3 Appropriate apportionment of indemnity vs party-and-party costs for §§13 of 14/8/2019 Summons

Ratio Decidendi

Indemnity costs were warranted because the 6/11/2020 Summons was issued and served late without adequate justification and was withdrawn after causing wasted costs and diversion of resources, and §§13 of the 14/8/2019 Summons were abandoned late and equivocally causing unnecessary expense; special and unusual features justified indemnity treatment for those parts, with an apportionment of 35% indemnity for §§13 and summary assessment payable forthwith with certificate for two counsel.

Court Disposition

Costs awarded to Plaintiffs against the Tianrui Defendants: indemnity costs for the 6/11/2020 Summons; for the 14/8/2019 Summons 35% of costs indemnity (for §§13) and 65% party-and-party (for §§45); all costs summarily assessed and payable forthwith; certificate for two counsel granted.

Orders

  • 6/11/2020 Summons: costs to be borne by the Tianrui Defendants on an indemnity basis
  • 14/8/2019 Summons: costs to be borne by the Tianrui Defendants with 35% on an indemnity basis and 65% on a party-and-party basis (representing costs of and occasioned by §§13 and §§45 respectively)