CHINA NATIONAL ELECTRONICS IMPORT AND EXPORT SHENZHEN CO AND ANOTHER v. PRIME CARGO (H.K.) LTD AND ANOTHER

CHINA NATIONAL ELECTRONICS IMPORT AND EXPORT SHENZHEN CO AND ANOTHER v. PRIME CARGO (H.K.) LTD AND ANOTHER

The court exercised its discretion to refuse further security beyond the existing $450,000 on the grounds that the plaintiffs' contractual case appeared strong, the defendants were unlikely to be entitled to full claimed costs, and a branch of Dresdner Bank in Hong Kong provided an additional recovery source; the court ordered limited discovery by affidavit restricted to the agreement evidencing the general arrangement and declined to order inspection at this stage.

Citation
CHINA NATIONAL ELECTRONICS IMPORT AND EXPORT SHENZHEN CO AND ANOTHER v. PRIME CARGO (H.K.) LTD AND ANOTHER
Parties
1st Plaintiff: China National Electronics Import and Export Shenzhen Company; 2nd Plaintiff: Dresdner Bank AG Shanghai Branch; 1st Defendant: Prime Cargo (H.K.) Limited; 2nd Defendant (hccl 76/2002): Hyundai Merchant Marine (Hong Kong) Limited; 2nd Defendant (hccl 77/2002): N.Y.K. Line (Hong Kong) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 April 2004
Case Number
HCCL77/2002
Procedural Posture
Consolidated Commercial Actions (hccl 76, 77 & 78 of 2002) / Interlocutory Decision on Applications for Security for Costs and Specific Discovery
Outcome
Application for further security refused; limited discovery ordered by affidavit; inspection declined at this stage.
Legal Topics
Security for Costs, Discovery, Misdelivery, Bill of Lading, Title to Sue, Costs Assessment
Source Language
EN
Commercial Law Maritime Law Civil Procedure Contract Law Tort Law Bailment Security for Costs Discovery +4 more

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Parties

China National Electronics Import and Export Shenzhen Company

1st Plaintiff

Dresdner Bank AG Shanghai Branch

2nd Plaintiff

Prime Cargo (H.K.) Limited

1st Defendant

Hyundai Merchant Marine (Hong Kong) Limited

2nd Defendant (hccl 76/2002)

N.Y.K. Line (Hong Kong) Limited

2nd Defendant (hccl 77/2002)

Procedural Posture

Consolidated Commercial Actions (hccl 76, 77 & 78 of 2002) / Interlocutory Decision on Applications for Security for Costs and Specific Discovery

Legal Issues

  1. 1 Whether further security for costs should be ordered
  2. 2 Extent to which court may take merits into account on a security for costs application
  3. 3 Whether discovery should be ordered and the appropriate scope and form of that discovery

Ratio Decidendi

The court exercised its discretion to refuse further security beyond the existing $450,000 on the grounds that the plaintiffs' contractual case appeared strong, the defendants were unlikely to be entitled to full claimed costs, and a branch of Dresdner Bank in Hong Kong provided an additional recovery source; the court ordered limited discovery by affidavit restricted to the agreement evidencing the general arrangement and declined to order inspection at this stage.

Court Disposition

Application for further security refused; limited discovery ordered by affidavit; inspection declined at this stage.

Orders

  • No further security to be provided beyond the existing security of $450,000.
  • Discovery ordered limited to the agreement containing or evidencing the terms of the general arrangement between the plaintiff and Shanghai Kaixinda, and to be effected by affidavit verifying whether such documents are in the plaintiffs' custody, possession or power.