STEPHEN MARK DRIMMER AND ANOTHER v. HONGKONG SEIYO INTERNATIONAL CO LTD AND OTHERS

STEPHEN MARK DRIMMER AND ANOTHER v. HONGKONG SEIYO INTERNATIONAL CO LTD AND OTHERS

The court allowed the 5th Defendant's appeal and ordered the plaintiffs to provide security of HK$250,000 up to and including discovery because on the evidence the court could not conclude there was a high probability that the plaintiffs would succeed or that the 5th Defendant's defences would fail; given plaintiffs' foreign residence and lack of assets, ordering security to preserve a fund for potential costs was just and appropriate, limited to discovery and set at a proportionate quantum.

Citation
[2022] HKCFI 3677
Parties
1st Plaintiff: Stephen Mark Drimmer; 2nd Plaintiff: Silverlight Entertainment LLC; 1st Defendant: Hongkong Seiyo International Company Limited; 2nd Defendant: Rich Family One Limited; 3rd Defendant (discontinued): Zhili Trading Co., Limited; 4th Defendant: Fujiayuan Limited; 5th Defendant: Hongkong Mandarin Advance Investment Limited; 6th Defendant: Weifulai Trading Co., Limited; 7th Defendant: Chiefly Choice Co., Limited; 8th Defendant: Sunpor Group Limited; 9th Defendant: Snok Group Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 December 2022
Case Number
HCA1033/2021
Procedural Posture
Civil Appeal Against Refusal to Order Security for Costs / Interlocutory Appeal (security for Costs)
Outcome
Appeal allowed; Master Kent Yee's order dated 24 May 2022 set aside; plaintiffs ordered to provide security; further proceedings stayed until security provided; time to file Defence extended; order nisi for costs in favour of 5th Defendant
Legal Topics
Security for Costs, Bona Fide Purchaser/seller for Value Without Notice, Change of Position Defence, Unjust Enrichment, Constructive Trust, Tracing
Source Language
EN
Civil Procedure Companies Law Equity Trusts and Tracing Commercial Law Security for Costs Bona Fide Purchaser/seller for Value Without Notice Change of Position Defence +3 more

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Parties

Stephen Mark Drimmer

1st Plaintiff

Silverlight Entertainment LLC

2nd Plaintiff

Hongkong Seiyo International Company Limited

1st Defendant

Rich Family One Limited

2nd Defendant

Zhili Trading Co., Limited

3rd Defendant (discontinued)

Fujiayuan Limited

4th Defendant

Hongkong Mandarin Advance Investment Limited

5th Defendant

Weifulai Trading Co., Limited

6th Defendant

Chiefly Choice Co., Limited

7th Defendant

Sunpor Group Limited

8th Defendant

Snok Group Limited

9th Defendant

Procedural Posture

Civil Appeal Against Refusal to Order Security for Costs / Interlocutory Appeal (security for Costs)

Legal Issues

  1. 1 Whether plaintiffs ordinarily resident abroad with no assets should be ordered to provide security for costs
  2. 2 Whether plaintiffs have a high degree/probability of success to resist security for costs
  3. 3 Whether the 5th defendant has a bona fide seller without notice defence

Ratio Decidendi

The court allowed the 5th Defendant's appeal and ordered the plaintiffs to provide security of HK$250,000 up to and including discovery because on the evidence the court could not conclude there was a high probability that the plaintiffs would succeed or that the 5th Defendant's defences would fail; given plaintiffs' foreign residence and lack of assets, ordering security to preserve a fund for potential costs was just and appropriate, limited to discovery and set at a proportionate quantum.

Court Disposition

Appeal allowed; Master Kent Yee's order dated 24 May 2022 set aside; plaintiffs ordered to provide security; further proceedings stayed until security provided; time to file Defence extended; order nisi for costs in favour of 5th Defendant

Orders

  • Order of Master Kent Yee dated 24 May 2022 set aside
  • The 1st and 2nd Plaintiffs shall pay into court within 21 days the sum of HK$250,000 as security for the 5th Defendant's costs in this Action up to and including discovery