KWONG IAN (HONG KONG) CONSTRUCTION AND REAL ESTATE DEVELOPMENT CO LTD v. GLORIOUS SUN (HIGHWAY DEVELOPMENT LTD) AND OTHERS

KWONG IAN (HONG KONG) CONSTRUCTION AND REAL ESTATE DEVELOPMENT CO LTD v. GLORIOUS SUN (HIGHWAY DEVELOPMENT LTD) AND OTHERS

The court allowed the 10th defendant's application and struck out the words 'and on behalf of Lucky Money Limited' because allowing Lucky Money to be described as part of the plaintiff while also being the 10th defendant was inappropriate, the alteration did not affect the merits, and there were no other shareholders not already parties; accordingly costs were ordered against Kwong Ian (Hong Kong) Construction and Real Estate Development Company Limited.

Citation
KWONG IAN (HONG KONG) CONSTRUCTION AND REAL ESTATE DEVELOPMENT CO LTD v. GLORIOUS SUN (HIGHWAY DEVELOPMENT LTD) AND OTHERS
Parties
Plaintiff: Plaintiff; Plaintiff (named Part): Kwong Ian (Hong Kong) Construction and Real Estate Development Company Limited; 10th Defendant: Lucky Money Limited; Defendants: 1st-3rd Defendants; Defendants: 4th-9th Defendants
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 August 2006
Case Number
HCA262/2006
Procedural Posture
Derivative Action / Interlocutory Application to Strike Out Part of Plaintiff's Title
Outcome
Application granted in part; specified words struck out; costs ordered against Kwong Ian (Hong Kong) Construction and Real Estate Development Company Limited; same orders for HCA261 and HCA262 of 2006.
Legal Topics
Derivative Action, Striking Out Description of Parties, Party Representation, Interlocutory Costs
Source Language
EN
Company Law Civil Procedure Costs Derivative Action Striking Out Description of Parties Party Representation Interlocutory Costs

Case Brief

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Parties

Plaintiff

Plaintiff

Kwong Ian (Hong Kong) Construction and Real Estate Development Company Limited

Plaintiff (named Part)

Lucky Money Limited

10th Defendant

1st-3rd Defendants

Defendants

4th-9th Defendants

Defendants

Procedural Posture

Derivative Action / Interlocutory Application to Strike Out Part of Plaintiff's Title

Legal Issues

  1. 1 Whether the phrase 'and on behalf of Lucky Money Limited' should be struck out from the plaintiff's title
  2. 2 Whether a party can be described as both plaintiff and defendant in the same action
  3. 3 Whether costs should be ordered against the party that resisted the striking out application

Ratio Decidendi

The court allowed the 10th defendant's application and struck out the words 'and on behalf of Lucky Money Limited' because allowing Lucky Money to be described as part of the plaintiff while also being the 10th defendant was inappropriate, the alteration did not affect the merits, and there were no other shareholders not already parties; accordingly costs were ordered against Kwong Ian (Hong Kong) Construction and Real Estate Development Company Limited.

Court Disposition

Application granted in part; specified words struck out; costs ordered against Kwong Ian (Hong Kong) Construction and Real Estate Development Company Limited; same orders for HCA261 and HCA262 of 2006.

Orders

  • Strike out the words 'and on behalf of Lucky Money Limited' from the title of the plaintiff.
  • Costs of the application to be paid by Kwong Ian (Hong Kong) Construction and Real Estate Development Company Limited to the 10th defendant; costs to be taxed and paid forthwith.