WING HONG CONSTRUCTION LTD (In Compulsory Liquidation) v. HUI CHI YUNG AND OTHERS

WING HONG CONSTRUCTION LTD (In Compulsory Liquidation) v. HUI CHI YUNG AND OTHERS

The appeal was allowed because the defendants' arguments on the summons were essentially the same as before the Master and justified allowing the appeal; accordingly the Master’s orders (including the HK$100,000 costs award) were set aside, costs of the summons and appeal were ordered to follow the event on a partyandparty basis, a certificate for one counsel (not two) was granted for the hearings, the plaintiff was ordered to provide security for defendants' costs of HK$2,000,000 to be paid into court within 28 days and proceedings were stayed until the security was provided; summary assessment was refused and taxation was directed if costs are not agreed.

Citation
WING HONG CONSTRUCTION LTD (In Compulsory Liquidation) v. HUI CHI YUNG AND OTHERS
Parties
Plaintiff (in Compulsory Liquidation): Wing Hong Construction Limited; 1st Defendant: Hui Chi Yung; 2nd Defendant: Hui Chi Yang; 3rd Defendant: Yiu Kai Yeuk (Raphael); 4th Defendant: China National Culture Group Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 September 2017
Case Number
HCA1423/2015
Procedural Posture
Civil Appeal Concerning Security for Costs and Costs Orders / Costs Decision and Variation of Order Nisi Following Appeal
Outcome
Appeal allowed; Orders of Master S Kwang dated 22 March 2017 and 12 April 2017 set aside; consequential costs and security orders made
Legal Topics
Security for Costs, Costs Follow the Event, Certificate for Counsel, Stay of Proceedings, Taxation of Costs, Return of Payment
Source Language
EN
Civil Procedure Costs Security for Costs Insolvency Costs Follow the Event Certificate for Counsel Stay of Proceedings Taxation of Costs +1 more

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Parties

Wing Hong Construction Limited

Plaintiff (in Compulsory Liquidation)

Hui Chi Yung

1st Defendant

Hui Chi Yang

2nd Defendant

Yiu Kai Yeuk (Raphael)

3rd Defendant

China National Culture Group Limited

4th Defendant

Procedural Posture

Civil Appeal Concerning Security for Costs and Costs Orders / Costs Decision and Variation of Order Nisi Following Appeal

Legal Issues

  1. 1 Whether the appeal against Master S Kwang's orders should be allowed and the orders set aside
  2. 2 Whether costs of the summons before Master S Kwang should follow the event
  3. 3 Whether a certificate for two counsel should be granted for the appeal hearing

Ratio Decidendi

The appeal was allowed because the defendants' arguments on the summons were essentially the same as before the Master and justified allowing the appeal; accordingly the Master’s orders (including the HK$100,000 costs award) were set aside, costs of the summons and appeal were ordered to follow the event on a partyandparty basis, a certificate for one counsel (not two) was granted for the hearings, the plaintiff was ordered to provide security for defendants' costs of HK$2,000,000 to be paid into court within 28 days and proceedings were stayed until the security was provided; summary assessment was refused and taxation was directed if costs are not agreed.

Court Disposition

Appeal allowed; Orders of Master S Kwang dated 22 March 2017 and 12 April 2017 set aside; consequential costs and security orders made

Orders

  • The defendants' appeal under their Notice of Appeal filed on 5 April 2017 is allowed and the Orders of Master S Kwang dated 22 March 2017 and 12 April 2017 are set aside.
  • The plaintiff must within 14 days from the date of this Order return the total sum of HK$100,000 to the defendants.