ELEGANT JUMP LTD. v. TRIBUNE BRIDGE LTD. AND ANOTHER

ELEGANT JUMP LTD. v. TRIBUNE BRIDGE LTD. AND ANOTHER

The court held that the counterclaim against Mr Cheng is a distinct cross-action against an additional party and is not merely a defence to Elegant Jump's claim; the corporate veil was not lifted; the undertakings and assets restrained under the Consent Order could not be treated as securing Cheng's costs without prejudging the substantive issues; accordingly the court exercised its discretion to order security for Mr Cheng's costs and fixed the sum at HK$900,000 (40% share), with the counterclaim stayed if security is not provided within 21 days, and ordered costs of the application against the defendants.

Citation
ELEGANT JUMP LTD. v. TRIBUNE BRIDGE LTD. AND ANOTHER
Parties
Plaintiff (also 2nd Defendant by Counterclaim): Elegant Jump Limited; 1st Defendant (and 1st Plaintiff by Counterclaim): Tribune Bridge Limited; 2nd Defendant (and 2nd Plaintiff by Counterclaim): Terry John Miller; 1st Defendant by Counterclaim: Angus Ronald Yan Tak Cheng
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 November 2000
Case Number
HCA14037/1999
Procedural Posture
Civil: Contract and Equity Dispute Concerning Share Sale Agreements and Counterclaim / Interlocutory Application for Security for Costs (pre Trial)
Outcome
Order nisi granted for security for costs in favour of Angus Ronald Yan Tak Cheng
Legal Topics
Security for Costs, Specific Performance, Counterclaim Vs Defence, Fiduciary Duty, Conspiracy/fraud, Mareva/undertakings
Source Language
EN
Civil Procedure Contract Law Equity Company Law Security for Costs Specific Performance Counterclaim Vs Defence Fiduciary Duty +2 more

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Parties

Elegant Jump Limited

Plaintiff (also 2nd Defendant by Counterclaim)

Tribune Bridge Limited

1st Defendant (and 1st Plaintiff by Counterclaim)

Terry John Miller

2nd Defendant (and 2nd Plaintiff by Counterclaim)

Angus Ronald Yan Tak Cheng

1st Defendant by Counterclaim

Procedural Posture

Civil: Contract and Equity Dispute Concerning Share Sale Agreements and Counterclaim / Interlocutory Application for Security for Costs (pre Trial)

Legal Issues

  1. 1 Whether court should order security for costs against an additional defendant by counterclaim
  2. 2 Whether the counterclaim against Mr Cheng is in substance a defence to the main claim
  3. 3 Whether the corporate veil should be lifted to treat Cheng as alter ego of Elegant Jump

Ratio Decidendi

The court held that the counterclaim against Mr Cheng is a distinct cross-action against an additional party and is not merely a defence to Elegant Jump's claim; the corporate veil was not lifted; the undertakings and assets restrained under the Consent Order could not be treated as securing Cheng's costs without prejudging the substantive issues; accordingly the court exercised its discretion to order security for Mr Cheng's costs and fixed the sum at HK$900,000 (40% share), with the counterclaim stayed if security is not provided within 21 days, and ordered costs of the application against the defendants.

Court Disposition

Order nisi granted for security for costs in favour of Angus Ronald Yan Tak Cheng

Orders

  • Defendants to pay into court HK$900,000 or provide a bank guarantee for HK$900,000 within 21 days or the defendants\' counterclaim against Angus Ronald Yan Tak Cheng is to be stayed until such security is provided.
  • Order nisi that the costs of and occasioned by this application are to be paid by the defendants to Angus Ronald Yan Tak Cheng, to be taxed if not agreed.