WAH NAM HOLDINGS CO. LTD. AND OTHERS v. EXCEL NOBLE DEVELOPMENT LTD. AND OTHERS

WAH NAM HOLDINGS CO. LTD. AND OTHERS v. EXCEL NOBLE DEVELOPMENT LTD. AND OTHERS

The appeal court held that it was improper to maintain an interim stay pending the substantive security for costs application where the evidence had not been fully filed and the matter was fixed for full hearing shortly; the stay amounted to prejudging the issue and therefore the interim stay ordered by the Master was lifted.

Citation
WAH NAM HOLDINGS CO. LTD. AND OTHERS v. EXCEL NOBLE DEVELOPMENT LTD. AND OTHERS
Parties
1st Plaintiff: WAH NAM HOLDINGS CO. LIMITED; 2nd Plaintiff: WILLIAM CHAN PAK TO; 3rd Plaintiff: WAH HING SECURITIES LIMITED; 1st Defendant: EXCEL NOBLE DEVELOPMENT LIMITED; 2nd Defendant: EMPIRE HARVEST DEVELOPMENT LIMITED; 3rd Defendant: STAMFORD STAR FINANCE LIMITED; 4th Defendant: UNBEATABLE ASSETS LIMITED; 5th Defendant: SAMSON DAVID CHEN; 6th Defendant: TERENCE HO PUI TIN; 7th Defendant: SOLAR HONEST LIMITED; 8th Defendant: WAH NAM GROUP LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 October 1999
Case Number
HCA8974/1999
Procedural Posture
Civil Action Interlocutory Application for Security for Costs / Interlocutory Appeal Against Interim Stay Order Pending Determination of Security for Costs
Outcome
Appeal allowed; interim stay set aside
Legal Topics
Interim Stay, Security for Costs, Exercise of Judicial Discretion, Costs Follow Event
Source Language
EN
Civil Procedure Costs Security for Costs Stay of Proceedings Interlocutory Appeals Interim Stay Exercise of Judicial Discretion Costs Follow Event

Case Brief

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Parties

WAH NAM HOLDINGS CO. LIMITED

1st Plaintiff

WILLIAM CHAN PAK TO

2nd Plaintiff

WAH HING SECURITIES LIMITED

3rd Plaintiff

EXCEL NOBLE DEVELOPMENT LIMITED

1st Defendant

EMPIRE HARVEST DEVELOPMENT LIMITED

2nd Defendant

STAMFORD STAR FINANCE LIMITED

3rd Defendant

UNBEATABLE ASSETS LIMITED

4th Defendant

SAMSON DAVID CHEN

5th Defendant

TERENCE HO PUI TIN

6th Defendant

SOLAR HONEST LIMITED

7th Defendant

WAH NAM GROUP LIMITED

8th Defendant

Procedural Posture

Civil Action Interlocutory Application for Security for Costs / Interlocutory Appeal Against Interim Stay Order Pending Determination of Security for Costs

Legal Issues

  1. 1 Whether an interim stay of proceedings pending a security for costs application is proper before full argument and final determination
  2. 2 Whether security for costs should be ordered against an individual plaintiff on evidence of insolvency
  3. 3 Whether the interim stay ordered by a Master should be varied as sought by defendants

Ratio Decidendi

The appeal court held that it was improper to maintain an interim stay pending the substantive security for costs application where the evidence had not been fully filed and the matter was fixed for full hearing shortly; the stay amounted to prejudging the issue and therefore the interim stay ordered by the Master was lifted.

Court Disposition

Appeal allowed; interim stay set aside

Orders

  • Interim stay ordered by Master Cannon is lifted
  • No variation of the interim stay as sought by the 1st-7th Defendants is granted