CITY TOP ENGINEERING LTD. v. LEE SHING YUE CONSTRUCTION CO. LTD.

CITY TOP ENGINEERING LTD. v. LEE SHING YUE CONSTRUCTION CO. LTD.

Security for costs was refused against City Top Engineering Limited because the court found CT's finances had improved, it remained a going concern, its claim was bona fide with prospects of success and ordering security would likely shut it out and cause injustice; security was ordered against Kingpoint Profits Limited in HCA13906/1999 in the sum of HKD 600,000 because KP is a foreign plaintiff and a financial backer of CT, creating enforcement risk and justifying partial protection to defendants.

Citation
CITY TOP ENGINEERING LTD. v. LEE SHING YUE CONSTRUCTION CO. LTD.
Parties
Plaintiff (also 2nd Plaintiff in Hca13906/1998): City Top Engineering Limited; 1st Plaintiff (foreign Plaintiff, Co Plaintiff and Financial Backer): Kingpoint Profits Limited; Defendant (1st Defendant in Hca13906/1998): Lee Shing Yue Construction Company Limited; 2nd Defendant (in Hca13906/1998): Thomas Lee Chun Cheong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 February 2000
Case Number
HCCT75/1998
Procedural Posture
Construction and Arbitration Proceedings With Interlocutory Applications / Interlocutory Hearing for Security for Costs (judgment in Chambers)
Outcome
Interlocutory orders: security for costs ordered against Kingpoint Profits Limited in HCA13906/1999 for HKD 600,000; summons for security for costs against City Top Engineering Limited in HCCT75/1998 dismissed; costs orders made.
Legal Topics
Security for Costs, Impecuniosity, Foreign Plaintiff, Companies Ordinance S.357, Order 23 Rule 1
Source Language
EN
Civil Procedure Company Law Construction Law Arbitration Security for Costs Impecuniosity Foreign Plaintiff Companies Ordinance S.357 +1 more

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Parties

City Top Engineering Limited

Plaintiff (also 2nd Plaintiff in Hca13906/1998)

Kingpoint Profits Limited

1st Plaintiff (foreign Plaintiff, Co Plaintiff and Financial Backer)

Lee Shing Yue Construction Company Limited

Defendant (1st Defendant in Hca13906/1998)

Thomas Lee Chun Cheong

2nd Defendant (in Hca13906/1998)

Procedural Posture

Construction and Arbitration Proceedings With Interlocutory Applications / Interlocutory Hearing for Security for Costs (judgment in Chambers)

Legal Issues

  1. 1 Whether security for costs should be ordered against City Top Engineering Limited under s.357 Companies Ordinance
  2. 2 Whether security for costs should be ordered against Kingpoint Profits Limited as a foreign plaintiff under Order 23 r.1
  3. 3 Quantum of any security to be ordered

Ratio Decidendi

Security for costs was refused against City Top Engineering Limited because the court found CT's finances had improved, it remained a going concern, its claim was bona fide with prospects of success and ordering security would likely shut it out and cause injustice; security was ordered against Kingpoint Profits Limited in HCA13906/1999 in the sum of HKD 600,000 because KP is a foreign plaintiff and a financial backer of CT, creating enforcement risk and justifying partial protection to defendants.

Court Disposition

Interlocutory orders: security for costs ordered against Kingpoint Profits Limited in HCA13906/1999 for HKD 600,000; summons for security for costs against City Top Engineering Limited in HCCT75/1998 dismissed; costs orders made.

Orders

  • Kingpoint Profits Limited to pay into court HKD 600,000 as security for costs in HCA13906/1999
  • Summons dated 18 November 1999 (HCCT75/1998) seeking security for costs against City Top Engineering Limited dismissed