CHINACAST EDUCATION CORPORATION AND OTHERS v. CHAN TZE NGON AND OTHERS

CHINACAST EDUCATION CORPORATION AND OTHERS v. CHAN TZE NGON AND OTHERS

Entitlement to security for costs was established; plaintiffs failed to demonstrate that an order would stifle the action because they were able but unwilling to fund further litigation; a Delaware judgment in favour of the plaintiff did not negate the power to order security because judgment debtor status does not equate to the defendant holding the plaintiff's money and enforcement in Hong Kong was not assured; taking into account deficiencies in the skeleton bill and excessive time charging, security for costs up to 29 May 2015 was fixed at HK$300,000 and the application for further security was adjourned to allow the plaintiff to elect whether to enforce the Delaware judgment; costs...

Citation
CHINACAST EDUCATION CORPORATION AND OTHERS v. CHAN TZE NGON AND OTHERS
Parties
1st Plaintiff: Chinacast Education Corporation; 2nd Plaintiff: Chinacast Technology (BVI) Limited; 3rd Plaintiff: Chinacast Technology (Shanghai) Limited; 2nd Defendant: Mr Sena; 1st Defendant: 1st Defendant; 3rd Defendant: 3rd Defendant; 5th Defendant: 5th Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 June 2015
Case Number
HCA1062/2012
Procedural Posture
Civil Commercial Litigation Interlocutory Application for Security for Costs / Chambers Hearing; Interlocutory; Case Management Pre Trial
Outcome
Interlocutory orders made: security for costs fixed at HK$300,000 up to 29 May 2015; further security application adjourned to 27 July 2015 for mention to allow plaintiffs to decide whether to enforce the Delaware judgment; order that 2nd defendant pay plaintiffs' costs of the strike-out application on a...
Legal Topics
Security for Costs, Order for Security, Certificate for Two Counsel, Summary Assessment of Costs, Enforcement of Foreign Judgment, Reciprocal Enforcement, Stifling Proceedings
Source Language
EN
Civil Procedure Costs Enforcement of Foreign Judgments Commercial Litigation Security for Costs Order for Security Certificate for Two Counsel Summary Assessment of Costs +3 more

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Parties

Chinacast Education Corporation

1st Plaintiff

Chinacast Technology (BVI) Limited

2nd Plaintiff

Chinacast Technology (Shanghai) Limited

3rd Plaintiff

Mr Sena

2nd Defendant

1st Defendant

1st Defendant

3rd Defendant

3rd Defendant

5th Defendant

5th Defendant

Procedural Posture

Civil Commercial Litigation Interlocutory Application for Security for Costs / Chambers Hearing; Interlocutory; Case Management Pre Trial

Legal Issues

  1. 1 Whether the 2nd defendant is entitled to security for costs
  2. 2 Appropriate quantum of security for costs
  3. 3 Whether an order for security would stifle the plaintiffs' action

Ratio Decidendi

Entitlement to security for costs was established; plaintiffs failed to demonstrate that an order would stifle the action because they were able but unwilling to fund further litigation; a Delaware judgment in favour of the plaintiff did not negate the power to order security because judgment debtor status does not equate to the defendant holding the plaintiff's money and enforcement in Hong Kong was not assured; taking into account deficiencies in the skeleton bill and excessive time charging, security for costs up to 29 May 2015 was fixed at HK$300,000 and the application for further security was adjourned to allow the plaintiff to elect whether to enforce the Delaware judgment; costs...

Court Disposition

Interlocutory orders made: security for costs fixed at HK$300,000 up to 29 May 2015; further security application adjourned to 27 July 2015 for mention to allow plaintiffs to decide whether to enforce the Delaware judgment; order that 2nd defendant pay plaintiffs' costs of the strike-out application on a...

Orders

  • Security for costs fixed in the sum of HK$300,000 up to 29 May 2015
  • Application for security for costs adjourned to 27 July 2015 for mention