A R EVANS CAPITAL PARTNERS LTD v. NOVEL ALTERNATIVE INVESTMENT LTD AND OTHERS

A R EVANS CAPITAL PARTNERS LTD v. NOVEL ALTERNATIVE INVESTMENT LTD AND OTHERS

The court refused to shorten the time for provision of security because the strike out hearing date was fortuitous and did not justify varying the originally ordered 14 days; refused indemnity costs because the petitioner’s conduct did not warrant them and had successfully reduced the security by defending the application; and held that parallel s168BC proceedings could not be taken into account to order immediate taxation and payment, therefore the costs order nisi was made absolute.

Citation
A R EVANS CAPITAL PARTNERS LTD v. NOVEL ALTERNATIVE INVESTMENT LTD AND OTHERS
Parties
Petitioner: A R Evans Capital Partners Limited; 1st Respondent: Novel Alternative Investment Limited; 2nd Respondent: Heffner, Paul Lincoln; 3rd Respondent: Lau, Wang Chi Barry; 4th Respondent: Gen2 Partners Limited; 5th Respondent: Gen2 Partners Investment Management Limited; 6th Respondent: Gen2 Partners Inc.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 February 2012
Case Number
HCMP1991/2011
Procedural Posture
Miscellaneous Proceedings (court of First Instance) / Interlocutory Applications Regarding Security for Costs and Costs Orders; Judgment on Applications
Outcome
Application to shorten time for provision of security refused; application for indemnity costs refused; costs order nisi made absolute; original security for costs order maintained.
Legal Topics
Security for Costs, Indemnity Costs, Taxation of Costs, Strike Out Application, Parallel Proceedings (s168 BC Companies Ordinance)
Source Language
EN
Company Law Civil Procedure Costs Law Security for Costs Indemnity Costs Taxation of Costs Strike Out Application Parallel Proceedings (s168 BC Companies Ordinance)

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Parties

A R Evans Capital Partners Limited

Petitioner

Novel Alternative Investment Limited

1st Respondent

Heffner, Paul Lincoln

2nd Respondent

Lau, Wang Chi Barry

3rd Respondent

Gen2 Partners Limited

4th Respondent

Gen2 Partners Investment Management Limited

5th Respondent

Gen2 Partners Inc.

6th Respondent

Procedural Posture

Miscellaneous Proceedings (court of First Instance) / Interlocutory Applications Regarding Security for Costs and Costs Orders; Judgment on Applications

Legal Issues

  1. 1 Whether to shorten time for provision of security for costs from 14 to 7 days
  2. 2 Whether to vary costs order nisi to indemnity costs and to order taxation and payment forthwith
  3. 3 Whether existence of parallel proceedings under s168BC of the Companies Ordinance justifies immediate taxation and payment of costs

Ratio Decidendi

The court refused to shorten the time for provision of security because the strike out hearing date was fortuitous and did not justify varying the originally ordered 14 days; refused indemnity costs because the petitioner’s conduct did not warrant them and had successfully reduced the security by defending the application; and held that parallel s168BC proceedings could not be taken into account to order immediate taxation and payment, therefore the costs order nisi was made absolute.

Court Disposition

Application to shorten time for provision of security refused; application for indemnity costs refused; costs order nisi made absolute; original security for costs order maintained.

Orders

  • Petitioner ordered to provide security for costs for the 1st to 4th respondents in the sum of HK$1,500,000 to be paid into court within 14 days as ordered on 16 February 2012.
  • Applications to vary the time for provision of security and to award indemnity costs and immediate taxation/payment are refused.