GRANT SMART (HK) LTD v. POWER LEADER TECHNOLOGY DEVELOPMENT LTD AND ANOTHER

GRANT SMART (HK) LTD v. POWER LEADER TECHNOLOGY DEVELOPMENT LTD AND ANOTHER

Security for costs granted in part: court accepted risk that Power Leader and Grant Smart may be unable to meet adverse costs orders, credited prior security and applied a 25% reduction for likely taxation and overlap; appropriate security quantified by apportioning claimed costs between pre-trial and trial, crediting prior security, and discounting for overlap, resulting in orders for HK$380,000 (Power Leader) and HK$115,000 (Grant Smart).

Citation
GRANT SMART (HK) LTD v. POWER LEADER TECHNOLOGY DEVELOPMENT LTD AND ANOTHER
Parties
Petitioner (hccw544/2006); 1st Defendant (hca1107/2007); Plaintiff (hcmp1310/2007): POWER LEADER TECHNOLOGY DEVELOPMENT LIMITED; 1st Respondent (hccw544/2006); 1st Defendant (hcmp1310/2007): ASIA PACIFIC BIOTECH CO. LIMITED; 2nd Respondent (hccw544/2006); Plaintiff (hca1107/2007); 2nd Defendant (hcmp1310/2007): GRANT SMART (HK) LIMITED; 3rd Respondent (hccw544/2006); 3rd Defendant (hcmp1310/2007): LU FEI; 2nd Defendant (hca1107/2007); Petitioner/principal in Related Proceedings: YE QING WEI, GEORGE; 4th Defendant (hcmp1310/2007): LI HIU HUNG; 5th Defendant (hcmp1310/2007): LI KUEI MIN FRANCO
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 March 2008
Case Number
HCA1107/2007
Procedural Posture
Interrelated Winding Up Petition, High Court Action and Miscellaneous Proceedings / Interlocutory — Applications for Security for Costs
Outcome
Applications for security for costs granted in part
Legal Topics
Security for Costs, Winding Up (s177), Unfairly Prejudicial Conduct (s168 A), Misrepresentation, Directors' Removal, Clean Hands
Source Language
EN
Company Law Civil Procedure Costs Equity Security for Costs Winding Up (s177) Unfairly Prejudicial Conduct (s168 A) Misrepresentation +2 more

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Parties

POWER LEADER TECHNOLOGY DEVELOPMENT LIMITED

Petitioner (hccw544/2006); 1st Defendant (hca1107/2007); Plaintiff (hcmp1310/2007)

ASIA PACIFIC BIOTECH CO. LIMITED

1st Respondent (hccw544/2006); 1st Defendant (hcmp1310/2007)

GRANT SMART (HK) LIMITED

2nd Respondent (hccw544/2006); Plaintiff (hca1107/2007); 2nd Defendant (hcmp1310/2007)

LU FEI

3rd Respondent (hccw544/2006); 3rd Defendant (hcmp1310/2007)

YE QING WEI, GEORGE

2nd Defendant (hca1107/2007); Petitioner/principal in Related Proceedings

LI HIU HUNG

4th Defendant (hcmp1310/2007)

LI KUEI MIN FRANCO

5th Defendant (hcmp1310/2007)

Procedural Posture

Interrelated Winding Up Petition, High Court Action and Miscellaneous Proceedings / Interlocutory — Applications for Security for Costs

Legal Issues

  1. 1 Whether court should order security for costs against Power Leader in HCMP 1310/2007 and related proceedings
  2. 2 Whether prior security (HK$425,000) should be credited against any new order
  3. 3 Whether Grant Smart should be ordered to provide security for costs in HCA1107/2007

Ratio Decidendi

Security for costs granted in part: court accepted risk that Power Leader and Grant Smart may be unable to meet adverse costs orders, credited prior security and applied a 25% reduction for likely taxation and overlap; appropriate security quantified by apportioning claimed costs between pre-trial and trial, crediting prior security, and discounting for overlap, resulting in orders for HK$380,000 (Power Leader) and HK$115,000 (Grant Smart).

Court Disposition

Applications for security for costs granted in part

Orders

  • Power Leader to provide security for costs in the sum of HK$380,000 in favour of the defendants in HCMP 1310/2007 (and related proceedings)
  • Grant Smart to provide security for costs in the sum of HK$115,000 in favour of the plaintiffs in HCA 1107/2007