CONCORDE CONSTRUCTION CO LTD AND ANOTHER v. COLGAN CO LTD AND OTHERS

CONCORDE CONSTRUCTION CO LTD AND ANOTHER v. COLGAN CO LTD AND OTHERS

Plasteel was entitled to have the 3rd party proceedings dismissed and to its costs against Concorde because Concorde impleaded Plasteel and Plasteel succeeded in its defence; the insolvency of Colgan does not alter the normal rule that costs follow the event and the costs awarded to the third party should be included in the costs payable by Colgan to Concorde.

Citation
CONCORDE CONSTRUCTION CO LTD AND ANOTHER v. COLGAN CO LTD AND OTHERS
Parties
Plaintiff / 1st Defendant (counterclaim): Concorde Construction Company Limited; Defendant / Plaintiff (counterclaim): Colgan Company Limited; Third Party / 2nd Defendant (counterclaim): Hsia & Associates (a firm); 2nd Third Party / Applicant: Plasteel Hong Kong Limited; 3rd Defendant: Rankine & Hill (a firm); 1st Third Party: Alliance Construction Company Limited; 3rd Third Party: Tai Hing Electrical Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 April 1985
Case Number
HCCL36/1984
Procedural Posture
Civil: Contract/construction; Counterclaim With Third Party Proceedings / Judgment (chambers) on Preliminary Costs Issue
Outcome
3rd party proceedings dismissed as to Plasteel; Plasteel awarded its costs against Concorde; those costs to be included in costs payable by Colgan to Concorde.
Legal Topics
Security for Costs, Dismissal for Non Payment of Security, Third Party Costs, Counterclaim, Costs Follow the Event, Insolvency Effects on Costs
Source Language
EN
Civil Procedure Costs Contract Construction Law Third Party Proceedings Security for Costs Dismissal for Non Payment of Security Third Party Costs +3 more

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Parties

Concorde Construction Company Limited

Plaintiff / 1st Defendant (counterclaim)

Colgan Company Limited

Defendant / Plaintiff (counterclaim)

Hsia & Associates (a firm)

Third Party / 2nd Defendant (counterclaim)

Plasteel Hong Kong Limited

2nd Third Party / Applicant

Rankine & Hill (a firm)

3rd Defendant

Alliance Construction Company Limited

1st Third Party

Tai Hing Electrical Company Limited

3rd Third Party

Procedural Posture

Civil: Contract/construction; Counterclaim With Third Party Proceedings / Judgment (chambers) on Preliminary Costs Issue

Legal Issues

  1. 1 Whether the 3rd party proceedings should be dismissed following dismissal of the counterclaim for non-payment of security for costs
  2. 2 Whether the successful third party is entitled to costs against the party who impleaded it (Concorde) rather than the insolvent defendant (Colgan)
  3. 3 Whether the court should order those costs to be included in the costs payable by the defendant to the plaintiff

Ratio Decidendi

Plasteel was entitled to have the 3rd party proceedings dismissed and to its costs against Concorde because Concorde impleaded Plasteel and Plasteel succeeded in its defence; the insolvency of Colgan does not alter the normal rule that costs follow the event and the costs awarded to the third party should be included in the costs payable by Colgan to Concorde.

Court Disposition

3rd party proceedings dismissed as to Plasteel; Plasteel awarded its costs against Concorde; those costs to be included in costs payable by Colgan to Concorde.

Orders

  • Third party proceedings against Plasteel dismissed.
  • Plasteel Hong Kong Limited awarded its costs against Concorde Construction Company Limited.