CHEN TEK YEE AND OTHERS v. CHAN MOON SHING AND ANOTHER

CHEN TEK YEE AND OTHERS v. CHAN MOON SHING AND ANOTHER

The court held that the 18 February 2013 offer was a valid sanctioned offer (and in any event, the court exercised its discretion under Order 22 rule 2(4) to give it Rule 24 consequences). Because the judgment was more advantageous to Chen than the offer, Chen was entitled to indemnity costs from 18 March 2013. The Daughters, not being parties when the offer was made, were not entitled to indemnity costs under Order 22 and there were no special features or conduct justifying indemnity costs for them under the court's general discretion; accordingly the Costs Order Nisi was varied to award indemnity costs to Chen after 18 March 2013 and party and party costs to the Daughters.

Citation
CHEN TEK YEE AND OTHERS v. CHAN MOON SHING AND ANOTHER
Parties
1st Plaintiff: CHEN TEK YEE; 2nd Plaintiff: LIANG LIN LIN; 3rd Plaintiff: LEUNG WAI WENDY; 1st Defendant: CHAN MOON SHING; 2nd Defendant: NG GOON LAU, JOSEPH
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 June 2015
Case Number
HCA954/2010
Procedural Posture
High Court Civil Action (property/licence/costs) / Costs Variation Application (post Judgment)
Outcome
Costs Order Nisi varied: indemnity costs awarded to Chen from 18 March 2013; Daughters awarded party and party costs only; specified costs orders for the Costs Summons
Legal Topics
Sanctioned Offer, Indemnity Costs, Party and Party Costs, Order 22 RHC, Contractual Licence, Settlement Offers, Court Discretion on Costs
Source Language
EN
Civil Procedure Costs Property Equity Sanctioned Offer Indemnity Costs Party and Party Costs Order 22 RHC +3 more

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Parties

CHEN TEK YEE

1st Plaintiff

LIANG LIN LIN

2nd Plaintiff

LEUNG WAI WENDY

3rd Plaintiff

CHAN MOON SHING

1st Defendant

NG GOON LAU, JOSEPH

2nd Defendant

Procedural Posture

High Court Civil Action (property/licence/costs) / Costs Variation Application (post Judgment)

Legal Issues

  1. 1 Whether plaintiff's 18 February 2013 offer was a valid sanctioned offer under Order 22 RHC
  2. 2 Whether the judgment was more advantageous to the plaintiff than the offer such that Order 22 rule 24 costs consequences apply
  3. 3 Whether the court should exercise its discretion under Order 22 rule 2(4) to treat a non-compliant offer as having Rule 24 consequences

Ratio Decidendi

The court held that the 18 February 2013 offer was a valid sanctioned offer (and in any event, the court exercised its discretion under Order 22 rule 2(4) to give it Rule 24 consequences). Because the judgment was more advantageous to Chen than the offer, Chen was entitled to indemnity costs from 18 March 2013. The Daughters, not being parties when the offer was made, were not entitled to indemnity costs under Order 22 and there were no special features or conduct justifying indemnity costs for them under the court's general discretion; accordingly the Costs Order Nisi was varied to award indemnity costs to Chen after 18 March 2013 and party and party costs to the Daughters.

Court Disposition

Costs Order Nisi varied: indemnity costs awarded to Chen from 18 March 2013; Daughters awarded party and party costs only; specified costs orders for the Costs Summons

Orders

  • Ng shall pay Chen half of her costs of the action as between Ng and Chen in respect of Chen's claim (but excluding costs of the counterclaim), including all costs reserved if any, to be taxed if not agreed on party and party basis up to and including 18 March 2013 and thereafter on indemnity basis
  • Ng shall pay the Daughters half of their costs of the action as between Ng and the Daughters in respect of the Daughters' claim (but excluding costs of the counterclaim), including all costs reserved if any, to be taxed if not agreed on party and party basis