CHEUNG TAK MAN DESMOND AND ANOTHER v. IP PUI LAM ARTHUR AND OTHERS

CHEUNG TAK MAN DESMOND AND ANOTHER v. IP PUI LAM ARTHUR AND OTHERS

The court held the judgment was more advantageous than the plaintiffs' earlier sanctioned offer because the judgment expressly provided for interest and the mechanism for custody and distribution consistent with the pleaded partnership entitlements; accordingly the costs order nisi was varied to award (a) interest on the judgment sum at judgment rate until 24 Feb 2023, at 1% above judgment rate from 25 Feb 2023 to 26 Jun 2025, and at judgment rate thereafter until payment; (b) costs payable to plaintiffs to be taxed party and party for costs up to 24 Feb 2023 and on an indemnity basis from 25 Feb 2023 onwards (subject to paragraph 4 of the order); (c) interest on paid counsel fees of...

Citation
[2025] HKDC 1936
Parties
1st Plaintiff: CHEUNG TAK MAN DESMOND; 2nd Plaintiff: CHIU SZE WAI WILFRED; 1st Defendant: IP PUI LAM ARTHUR and IP PUI SUM; 2nd Defendant: CHENG YUNG NGAI KENNETH and CHAN MEI MEI; 3rd Defendant: LAM SIU SUN DENNIS; 4th Defendant: LEE MOSES
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
12 November 2025
Case Number
DCCJ2733/2021
Procedural Posture
Civil Action / Post Judgment Application to Vary Costs Order Nisi
Outcome
Costs order nisi varied in part in accordance with the court's reasons; judgment as previously entered otherwise maintained.
Legal Topics
Sanctioned Offer Under Order 22 RDC, Costs Order Nisi Variation, Indemnity Costs, Enhanced Interest, Interest on Counsel Fees, Undertaking and Custody of Funds, Interpretation of Sanctioned Offers
Source Language
EN
Civil Procedure Costs Partnership Law Bankruptcy Equity Sanctioned Offer Under Order 22 RDC Costs Order Nisi Variation Indemnity Costs +4 more

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Parties

CHEUNG TAK MAN DESMOND

1st Plaintiff

CHIU SZE WAI WILFRED

2nd Plaintiff

IP PUI LAM ARTHUR and IP PUI SUM

1st Defendant

CHENG YUNG NGAI KENNETH and CHAN MEI MEI

2nd Defendant

LAM SIU SUN DENNIS

3rd Defendant

LEE MOSES

4th Defendant

Procedural Posture

Civil Action / Post Judgment Application to Vary Costs Order Nisi

Legal Issues

  1. 1 Whether the judgment achieved by plaintiffs was more advantageous than the sanctioned offer made under Order 22 RDC
  2. 2 Whether terms can be implied into a sanctioned offer under Order 22 or the offer must be strictly construed as a statutory, non-contractual instrument
  3. 3 Entitlement to indemnity costs from a particular date and to enhanced interest on sums and on counsel fees

Ratio Decidendi

The court held the judgment was more advantageous than the plaintiffs' earlier sanctioned offer because the judgment expressly provided for interest and the mechanism for custody and distribution consistent with the pleaded partnership entitlements; accordingly the costs order nisi was varied to award (a) interest on the judgment sum at judgment rate until 24 Feb 2023, at 1% above judgment rate from 25 Feb 2023 to 26 Jun 2025, and at judgment rate thereafter until payment; (b) costs payable to plaintiffs to be taxed party and party for costs up to 24 Feb 2023 and on an indemnity basis from 25 Feb 2023 onwards (subject to paragraph 4 of the order); (c) interest on paid counsel fees of...

Court Disposition

Costs order nisi varied in part in accordance with the court's reasons; judgment as previously entered otherwise maintained.

Orders

  • The 1st Defendant do pay Messrs. Li Wong Lam & W.I. Cheung interest on the Judgment Sum: at judgment rate from the date of the Writ of Summons, that is, 11 June 2021 to 24 February 2023; at a rate of 1% above judgment rate from 25 February 2023 until the date of Judgment, that is, 26 June 2025; and at judgment rate...
  • The 1st, 3rd and 4th Defendants do pay the costs of the action, including any costs reserved, to the 1st and 2nd Plaintiffs, to be taxed if not agreed, with certificate for counsel; such costs incurred up to 24 February 2023 are to be taxed on a party and party basis if not agreed, whereas such costs incurred from...