WINGAMES INVESTMENTS LTD AND OTHERS v. MASCOT LAND LTD AND OTHERS

WINGAMES INVESTMENTS LTD AND OTHERS v. MASCOT LAND LTD AND OTHERS

Court found on the evidence that the 2nd plaintiff's central management and control lies outside Hong Kong and thus it is ordinarily resident abroad; exercised discretion to order further security but declined the full sum sought, finding insufficient evidence that a further order would stifle the claim; fixed further security at HK$2,400,000 to be paid into court within 28 days and provided for a stay of proceedings if unpaid; made a costs order nisi for two-thirds of costs of the application in favour of defendants.

Citation
WINGAMES INVESTMENTS LTD AND OTHERS v. MASCOT LAND LTD AND OTHERS
Parties
1st Plaintiff: WINGAMES INVESTMENTS LIMITED; 2nd Plaintiff: CHINA HEALTHCARE HOLDINGS LIMITED; 3rd Plaintiff: CHC INVESTMENT HOLDINGS LIMITED; 1st Defendant: MASCOT LAND LIMITED; 2nd Defendant: CHINA ZHONGFU INDUSTRY CO. LIMITED; 3rd Defendant: SHANGHAI ZHONGFU INTERNATIONAL TRADING CO. LIMITED; 4th Defendant: ANHUI ANHE INVESTMENT CONSULTING CO. LIMITED; 5th Defendant: WANG JISHENG; 6th Defendant: GE QIANSONG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 July 2012
Case Number
HCA907/2011
Procedural Posture
Civil Action Application for Further Security for Costs / Interlocutory Application After Close of Pleadings (chambers Hearing)
Outcome
Further security for costs ordered; plaintiffs to pay additional security into court and action to be stayed if not paid; costs order nisi in favour of defendants
Legal Topics
Security for Costs, Ordinary Residence, Central Management and Control, Exercise of Judicial Discretion, Issue Estoppel
Source Language
EN
Civil Procedure Company Law Costs Security for Costs Ordinary Residence Central Management and Control Exercise of Judicial Discretion Issue Estoppel

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Parties

WINGAMES INVESTMENTS LIMITED

1st Plaintiff

CHINA HEALTHCARE HOLDINGS LIMITED

2nd Plaintiff

CHC INVESTMENT HOLDINGS LIMITED

3rd Plaintiff

MASCOT LAND LIMITED

1st Defendant

CHINA ZHONGFU INDUSTRY CO. LIMITED

2nd Defendant

SHANGHAI ZHONGFU INTERNATIONAL TRADING CO. LIMITED

3rd Defendant

ANHUI ANHE INVESTMENT CONSULTING CO. LIMITED

4th Defendant

WANG JISHENG

5th Defendant

GE QIANSONG

6th Defendant

Procedural Posture

Civil Action Application for Further Security for Costs / Interlocutory Application After Close of Pleadings (chambers Hearing)

Legal Issues

  1. 1 Whether the 2nd plaintiff is ordinarily resident in Hong Kong for security for costs purposes
  2. 2 Whether the court should exercise its discretion to order further security for costs or whether such an order would stifle the plaintiffs' claim
  3. 3 Appropriate quantum of further security for costs

Ratio Decidendi

Court found on the evidence that the 2nd plaintiff's central management and control lies outside Hong Kong and thus it is ordinarily resident abroad; exercised discretion to order further security but declined the full sum sought, finding insufficient evidence that a further order would stifle the claim; fixed further security at HK$2,400,000 to be paid into court within 28 days and provided for a stay of proceedings if unpaid; made a costs order nisi for two-thirds of costs of the application in favour of defendants.

Court Disposition

Further security for costs ordered; plaintiffs to pay additional security into court and action to be stayed if not paid; costs order nisi in favour of defendants

Orders

  • Plaintiffs to pay further security for costs of HK$2,400,000 into court within 28 days from date of order
  • If further security is not paid within 28 days, the plaintiffs' action shall be stayed