Hong Kong Judgment

Court of First Instance

RE B. F. CONSTRUCTION CO LTD

On this page

Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The Registrar found the overall time and sums claimed to be generally reasonable but made specific reductions (45 minutes from JT, 7 minutes and 10 minutes from NB totaling $2,867) and thereby assessed the recoverable costs at $21,360, to be paid from monies held by the Provisional Liquidators.

Court disposition

Costs assessed in favour of the Provisional Liquidators in the sum of $21,360; costs to be deducted from monies held by the Provisional Liquidators.

Orders

  • Assessment of costs awarded to the Provisional Liquidators: $21,360
  • The claimed sum of $24,227 is reduced by $2,867 resulting in assessed costs of $21,360
  • The assessed sum of $21,360 is to be deducted from the money held by the Provisional Liquidators

02

Material facts

Parties

B. F. CONSTRUCTION COMPANY LIMITED

Company

Provisional Liquidators of B. F. Construction Company Limited

Provisional Liquidators Counsel: Messrs. Kennedys

Ng & Partners

Respondent Solicitors

Amounts and remedies

  • Claimed Amount by Provisional Liquidators' Solicitors: HKD 24,227
  • Total Deductions Ordered: HKD 2,867
  • Assessed Costs Awarded: HKD 21,360

03

Procedural history

  1. Posture

    Companies Winding Up Proceedings (application for Release of Provisional Liquidators' Report and Costs) / Costs Assessment After Refusal of Application for Release of Report

04

Questions and positions

Legal issues

Party arguments

Applicant
The Provisional Liquidators, through Messrs. Kennedys, claimed $24,227 for work related to the application for release of the Misfeasance Report and maintained the time spent was reasonable given file review and correspondence.
Respondent
Ng & Partners objected to particular time entries as excessive, proposing deductions (notably 45 minutes from JT, 7 minutes and 10 minutes from NB) and arguing senior solicitor time should not be spent on mechanical tasks.

05

Court’s reasoning

  1. 01

    Court's supervisory role in costs assessment (Companies winding-up proceedings) / Companies Ordinance context

    Costs awarded must be reasonable and proportionate to the work actually necessary for the application

  2. 02

    Registrar's assessment and practice in taxation of costs (Registrar C. Chan, decision)

    Routine or mechanical tasks should be performed by junior staff or costs draftsmen, not necessarily by senior solicitors

  3. 03

    Companies Ordinance context and the Registrar's order in these winding-up proceedings

    Costs incurred by Provisional Liquidators in relation to court applications may be ordered to be paid out of funds held by the Provisional Liquidators

06

Ratio, limits and disposition

Ratio decidendi

The Registrar found the overall time and sums claimed to be generally reasonable but made specific reductions (45 minutes from JT, 7 minutes and 10 minutes from NB totaling $2,867) and thereby assessed the recoverable costs at $21,360, to be paid from monies held by the Provisional Liquidators.

Obiter and limits

  • Deciding the application on paper did not necessarily save costs because additional correspondence and file review became necessary
  • Engaging two solicitors on a relatively simple application was unnecessary and increased costs
  • Where a solicitor recently takes over a file from predecessors, extra time for file familiarization may be incurred but should be objectively justified

Court disposition

Costs assessed in favour of the Provisional Liquidators in the sum of $21,360; costs to be deducted from monies held by the Provisional Liquidators.

  • Assessment of costs awarded to the Provisional Liquidators: $21,360
  • The claimed sum of $24,227 is reduced by $2,867 resulting in assessed costs of $21,360
  • The assessed sum of $21,360 is to be deducted from the money held by the Provisional Liquidators

Source and reliance status

Court of First Instance · 22 June 2007

This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.

Judgment reading view

Judgment text

The complete available source text.

Source document

Court of First Instance

Judgment· 22 June 2007

RE B. F. CONSTRUCTION CO LTD

bjbj HCCW 691/2004

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE COMPANIES WINDING-UP PROCEEDINGS NO. 691 OF 2004 _____ IN THE MATTER of the Companies Ordinance, Chapter 32 of the Laws of Hong Kong Special Administrative Region and IN THE MATTER of B. F. CONSTRUCTION COMPANY LIMITED _____ Coram: Before Mr. Registrar C. Chan in Chambers Date of Hearing: 8 June 2007 Date of Decision: 22 June 2007 _____

D E C I S I O N _____ On 28 February 2007 I refused the Company s application for release of the Report prepared by the Provisional Liquidators and I order that the costs be to the Provisional Liquidators and to be assessed by me.

2. On 3 April 2007 Messrs. Kennedys, solicitors for the Provisional Liquidators ( ), submitted its Statement of Costs by which the PLs asked for a total sum of $24,227.00. My first impression is that the amount claimed is on the high side. The application was disposed of by me on paper without a hearing. It was my assumption that time and costs could be saved without attending court.

3. My assumption does not prove to be correct. The parties had to prepare quite a number of correspondences more than usual, partly because I had not given any specific directions in the conduct of the proceedings.

4. The total time spent according to my calculation Mr. Nigel Bacon ( ) spent 2 hours 27 minutes while his assistant Ms. Tse Mei Ling ( ) 6 hours 18 minutes. The application only dealt with a minor issue. No law has been cited notwithstanding JT claimed that she had made research for 30 minutes. I do not see any particular reason why two solicitors were engaged in such relatively simple job. As I understand, the case was formerly handled by another solicitor firm for the PLs and Messrs. Kennedys had taken over the case only shortly before when the application was made. Resulting from this, extra time was spent, for example, Kennedys had to go through the file to see whether their predecessor had lodged any objection to the application which was originally made to Kwan J. After considering all the items, I find generally the amounts of time spent and the sums claimed are reasonable, except for those items to which requisitions were raised by Messrs. Ng and Partners as set out below.

7. The 1st objection is related to item 1 where it is stated that NB considered the application made by Ng & Partners as contained in the letter of 28 December 2006 which initiated the application. It was a 2-page letter setting out the background. NB needed time to consider the matter. I do not find it justified to deduct the small difference of 3 minutes. I overruled the objection.

8. The 2nd objection is related to item 12: the PLs solicitor charged for preparing a reply dated 11 January 2007. In the letter, Kennedys confirmed no comment had been made by its predecessor. The letter also set out the facts and background of the matter. It is obvious that some time was spent in reading through the file and trying to locate the necessary relevant documents. I am convinced that the time of 2 hours required to prepare the letter is excessive. I deduct 45 minutes from the JT s claim.

9. The 3rd objection is related to item 15: NB perused and considered the reply of Ng and Partners to the Kennedys letter of 11 January above mentioned. It is a short letter re-iterating its position. I agree that 5 minutes would be sufficient and I deduct 7 minutes from NB.

10. The last objection is related to NB approving the calculations. Ng and Partners suggested to deduct 10 minutes. My view is that a solicitor of such seniority should not be involved in such tedious mechanical work. I would have suggested that such work be carried out by a law costs draftsman, a trainee solicitor or at most JT. I agree to the deduction of 10 minutes from NB.

11. The deductions are summarized as follows: Objection No. Item No. Result Paragraph above Costs deducted No deduction 45 mins from JT $1,875 7 mins from NB $408 10 mins from NB $584 Costs to be deducted: $2,867 12. I assess the costs awarded to the Provisional Liquidators in respect of the Company s application for release of the Misfeasance Report to be $21,360 (i.e. the amount of $24,227 claimed less $2,867). Such sum is to be deducted from the money held the Provisional Liquidators. (Christopher C. Chan) Registrar Messrs. Kennedys for the former Provisional Liquidators of the Company, excused f 1udk 1udk

N

O

P

Q

R

S

T U V & 6" Normal.dot setup Microsoft Word 9.0 Judiciary Title Microsoft Word Document MSWordDoc Word.Document.8

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Companies Ordinance, Chapter 32

Legislation

Legislation referenced in the available case record.

Case-aware research

Ask AI about this case

The judgment and available research above are public. New questions open in a separate private conversation grounded in this case.

About this LexChat collection

This page organizes the available case record for research. Verify quotations, current status, and subsequent treatment against the source document. Corrections can be reported to hello@esheria.ai.

Legal information, not legal advice. Research summaries do not replace the judgment.