GUESS ?, INC. AND OTHERS v. LEE SECK MON AND OTHERS

GUESS ?, INC. AND OTHERS v. LEE SECK MON AND OTHERS

Leave to re-amend was granted but conditional on provision of ordered security; security for costs was ordered only up to completion of discovery (staggered approach). Quantum was assessed with substantial discounts: 1st–6th defendants HK$13,000,000 to date and HK$15,000,000 to completion of discovery; 7th defendant...

Source-derived case information.

Citation
GUESS ?, INC. AND OTHERS v. LEE SECK MON AND OTHERS
Parties
1st Plaintiff: GUESS ?, INC.; 2nd Plaintiff: GEORGES MARCIANO; 3rd Plaintiff: MAURICE MARCIANO; 4th Plaintiff: ARMAND MARCIANO; 5th Plaintiff: PAUL MARCIANO; 1st Defendant: LEE SECK MON; 2nd Defendant: DELIA CHAN WAI SHEUNG; 3rd Defendant: FAMOUS HORSE GARMENT FACTORY LTD.; 4th Defendant: FAMOUS LABEL INTERNATIONAL CO. LTD.; 5th Defendant: GOODYEAR INDUSTRIAL CORPORATION (A firm); 6th Defendant: LUCKY HORSE GARMENT FACTORY LTD.; 7th Defendant: JORDACHE INTERNATIONAL (HK) LTD.; 8th Defendant: KRIO TRADINGS LTD.; 9th Defendant: GASOLINE LTD.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 June 1989
Case Number
HCA604/1986
Procedural Posture
Civil Derivative Action (intellectual Property and Company Rights) / Interlocutory Application for Leave to Re Amend and Applications for Security for Costs (order 23 R.1)
Outcome
Conditional grant of leave to re-amend; security for costs ordered up to completion of discovery with specified quantified and apportioned sums; liberty to apply for further security; amendment to be effected only after security provided; costs of present summonses reserved to be addressed.
Legal Topics
Security for Costs, Leave to Amend, Derivative Action, Insolvency/impecuniosity, Indemnity Agreements, Discovery, Apportionment of Costs
Source Language
en
Civil Procedure Corporate Law Intellectual Property Costs and Taxation Security for Costs Leave to Amend Derivative Action Insolvency/impecuniosity +3 more

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Parties

GUESS ?, INC.

1st Plaintiff

GEORGES MARCIANO

2nd Plaintiff

MAURICE MARCIANO

3rd Plaintiff

ARMAND MARCIANO

4th Plaintiff

PAUL MARCIANO

5th Plaintiff

LEE SECK MON

1st Defendant

DELIA CHAN WAI SHEUNG

2nd Defendant

FAMOUS HORSE GARMENT FACTORY LTD.

3rd Defendant

FAMOUS LABEL INTERNATIONAL CO. LTD.

4th Defendant

GOODYEAR INDUSTRIAL CORPORATION (A firm)

5th Defendant

LUCKY HORSE GARMENT FACTORY LTD.

6th Defendant

JORDACHE INTERNATIONAL (HK) LTD.

7th Defendant

KRIO TRADINGS LTD.

8th Defendant

GASOLINE LTD.

9th Defendant

Procedural Posture

Civil Derivative Action (intellectual Property and Company Rights) / Interlocutory Application for Leave to Re Amend and Applications for Security for Costs (order 23 R.1)

Legal Issues

  1. 1 Whether non-resident plaintiffs should be ordered to give security for costs under Order 23 r.1
  2. 2 Whether leave to substitute Gasoline Ltd. as plaintiff should be granted and on what conditions
  3. 3 Whether security should be ordered for all future costs or staged up to completion of discovery

Ratio Decidendi

Leave to re-amend was granted but conditional on provision of ordered security; security for costs was ordered only up to completion of discovery (staggered approach). Quantum was assessed with substantial discounts: 1st–6th defendants HK$13,000,000 to date and HK$15,000,000 to completion of discovery; 7th defendant HK$6,000,000 to date and HK$9,000,000 to completion of discovery. Apportionment: Marcianos to provide 10% of costs to date and Guess 90%; for costs from present to completion of discovery Gasoline to provide 10% and Guess 90%. Liberty to apply for further security and leave to amend effective only after security provided.

Court Disposition

Conditional grant of leave to re-amend; security for costs ordered up to completion of discovery with specified quantified and apportioned sums; liberty to apply for further security; amendment to be effected only after security provided; costs of present summonses reserved to be addressed.

Orders

  • Leave to re-amend the Statement of Claim granted conditional upon provision of security for costs as ordered below prior to amendment taking effect; liberty to apply
  • Security for costs ordered up to completion of discovery as follows: 1st–6th defendants — HK$13,000,000 (costs to date) and HK$15,000,000 (from present to completion of discovery); 7th defendant — HK$6,000,000 (costs to date) and HK$9,000,000 (from present to completion of discovery)