CHINA MEDICAL TECHNOLOGIES, INC (IN LIQUIDATION) AND OTHERS v. WU XIAODONG AND OTHERS

CHINA MEDICAL TECHNOLOGIES, INC (IN LIQUIDATION) AND OTHERS v. WU XIAODONG AND OTHERS

Leave to appeal against the Costs Order was refused because the proposed appeal had no reasonable prospect of success and there was no interest of justice to hear it; the Joinder Summons was found to be unmeritorious and brought with improper purpose (delay), justifying a costs order against the 2nd Defendant; the leave application is not a continuation of the joinder application and so costs of the leave application are awarded on a party and party basis to the Plaintiffs, BOC and BEA and must be paid forthwith.

Citation
[2023] HKCFI 2735
Parties
1st Plaintiff (in Liquidation): China Medical Technologies, Inc; 2nd Plaintiff: CMED Technologies Ltd; 3rd Plaintiffs (in Their Capacity as the Joint and Several Liquidators of China Medical Technologies, Inc): Cosimo Borrelli and Yuen Lai Yee; 1st Defendant: Wu Xiaodong; 2nd Defendant: Samson Tsang Tak Yung; 3rd Defendant: Chen Zhong; 4th Defendant: Zhu Feng (Charles); 5th Defendant (in His Personal Capacity and Formerly Trading as Kam Hing Trading Co): Chong Wing Hip; 6th Defendant: Hao Xiaoqing Allan; 7th Defendant: Supreme Well Investments Limited; 8th Defendant: East Hope International Limited; 9th Defendant: Cheer Link International Limited; 10th Defendant: Innovative Technology Investment Limited; 11th Defendant: Dynamic Sense Limited; 12th Defendant: Time Region Holdings Limited; 13th Defendant (in Her Personal Capacity and as Trustee): Bi Xiaoqiong; 14th Defendant: Worldpro Investments Limited; 15th Defendant: Long Chart Investments Limited; 16th Defendant: Chavis Investments Limited; 17th Defendant: Sinowell International Investment Limited; 18th Defendant: Chengxuan International Ltd; 19th Defendant: Weixiao Medical Technology Limited; 20th Defendant: WB International Holding PTE LTD; 21st Defendant: Max Prosper Enterprises Limited; 22nd Defendant: Jun Yun Bi; 23rd Defendant: Global Flash Limited; Interested Party (proposed Joinder) / Defendant in Related Proceedings: Bank of China (Hong Kong) Limited; Interested Party (proposed Joinder) / Defendant in Related Proceedings: Bank of East Asia Limited; Proposed Interested Party (joinder Adjourned Sine Die): Paul, Weiss, Rifkind, Wharton & Garrison LLP and Paul, Weiss, Rifkind, Wharton & Garrison
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 October 2023
Case Number
HCA3391/2016
Procedural Posture
Consolidated Civil Action Arising From Company Liquidation and Related Claims / Interlocutory Hearing in Chambers on Leave to Appeal a Costs Order (application Dismissed)
Outcome
Application for leave to appeal against the Costs Order dismissed
Legal Topics
Joinder, Indemnity Costs, Leave to Appeal, Case Management, Delay, Dishonest Assistance, Knowing Receipt, Summary Assessment of Costs
Source Language
EN
Civil Procedure Costs Company Law Appeal Case Management Joinder Indemnity Costs Leave to Appeal +4 more

Case Brief

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Parties

China Medical Technologies, Inc

1st Plaintiff (in Liquidation)

CMED Technologies Ltd

2nd Plaintiff

Cosimo Borrelli and Yuen Lai Yee

3rd Plaintiffs (in Their Capacity as the Joint and Several Liquidators of China Medical Technologies, Inc)

Wu Xiaodong

1st Defendant

Samson Tsang Tak Yung

2nd Defendant

Chen Zhong

3rd Defendant

Zhu Feng (Charles)

4th Defendant

Chong Wing Hip

5th Defendant (in His Personal Capacity and Formerly Trading as Kam Hing Trading Co)

Hao Xiaoqing Allan

6th Defendant

Supreme Well Investments Limited

7th Defendant

East Hope International Limited

8th Defendant

Cheer Link International Limited

9th Defendant

Innovative Technology Investment Limited

10th Defendant

Dynamic Sense Limited

11th Defendant

Time Region Holdings Limited

12th Defendant

Bi Xiaoqiong

13th Defendant (in Her Personal Capacity and as Trustee)

Worldpro Investments Limited

14th Defendant

Long Chart Investments Limited

15th Defendant

Chavis Investments Limited

16th Defendant

Sinowell International Investment Limited

17th Defendant

Chengxuan International Ltd

18th Defendant

Weixiao Medical Technology Limited

19th Defendant

WB International Holding PTE LTD

20th Defendant

Max Prosper Enterprises Limited

21st Defendant

Jun Yun Bi

22nd Defendant

Global Flash Limited

23rd Defendant

Bank of China (Hong Kong) Limited

Interested Party (proposed Joinder) / Defendant in Related Proceedings

Bank of East Asia Limited

Interested Party (proposed Joinder) / Defendant in Related Proceedings

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Paul, Weiss, Rifkind, Wharton & Garrison

Proposed Interested Party (joinder Adjourned Sine Die)

Procedural Posture

Consolidated Civil Action Arising From Company Liquidation and Related Claims / Interlocutory Hearing in Chambers on Leave to Appeal a Costs Order (application Dismissed)

Legal Issues

  1. 1 Whether leave to appeal should be granted against the Costs Order
  2. 2 Whether the Joinder Summons was unmeritorious and brought to delay the main action
  3. 3 Whether costs should have been ordered on an indemnity basis

Ratio Decidendi

Leave to appeal against the Costs Order was refused because the proposed appeal had no reasonable prospect of success and there was no interest of justice to hear it; the Joinder Summons was found to be unmeritorious and brought with improper purpose (delay), justifying a costs order against the 2nd Defendant; the leave application is not a continuation of the joinder application and so costs of the leave application are awarded on a party and party basis to the Plaintiffs, BOC and BEA and must be paid forthwith.

Court Disposition

Application for leave to appeal against the Costs Order dismissed

Orders

  • Application for leave to appeal dismissed
  • Costs of the application to the Plaintiffs, Bank of China (Hong Kong) Limited and Bank of East Asia Limited to be summarily assessed on a party and party basis with certificate for counsel