G v. N

G v. N

The Court accepted that it had power under s86(4) to order security but exercised its discretion to refuse N's application for security for costs because the application was made late, would be disproportionate and prejudicial to G given the imminent substantive hearing; however the Court concluded fortification was necessary given the awards, the evidence of G's and KG's precarious finances and the risk to N, and ordered additional fortification of US$658,982.33 to be paid within 7 days.

Citation
[2023] HKCFI 2437
Parties
Applicant/plaintiff: G; Respondent/defendant: N
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 September 2023
Case Number
HCCT38/2021
Procedural Posture
Arbitration Enforcement and Setting Aside Proceedings / Interlocutory Applications for Security for Costs and Fortification (paper Disposal Prior to Substantive Hearings)
Outcome
Fortification granted; Security for costs dismissed
Legal Topics
Security for Costs, Fortification of Undertaking, Enforcement of Arbitral Awards, Setting Aside Awards, Preservation Order, Delay and Prejudice
Source Language
EN
Arbitration Civil Procedure Enforcement of Judgments Costs Security for Costs Fortification of Undertaking Enforcement of Arbitral Awards Setting Aside Awards +2 more

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Parties

G

Applicant/plaintiff

N

Respondent/defendant

Procedural Posture

Arbitration Enforcement and Setting Aside Proceedings / Interlocutory Applications for Security for Costs and Fortification (paper Disposal Prior to Substantive Hearings)

Legal Issues

  1. 1 Whether the Court may order security for costs under section 86(4) of the Arbitration Ordinance in these consolidated proceedings
  2. 2 Whether G should be ordered to provide fortification of its undertaking given its financial position and the arbitral awards
  3. 3 Whether N's application for security is barred or should be refused because of delay and potential prejudice to G

Ratio Decidendi

The Court accepted that it had power under s86(4) to order security but exercised its discretion to refuse N's application for security for costs because the application was made late, would be disproportionate and prejudicial to G given the imminent substantive hearing; however the Court concluded fortification was necessary given the awards, the evidence of G's and KG's precarious finances and the risk to N, and ordered additional fortification of US$658,982.33 to be paid within 7 days.

Court Disposition

Fortification granted; Security for costs dismissed

Orders

  • G to pay additional fortification of US$658,982.33 within 7 days (period may be extended with N's consent)
  • Security Application by summonses issued on 9 August 2023 dismissed