LIM YEW CHENG (suing in a personal capacity and derivatively on behalf of himself as a shareholder of KENORA CORPORATION LTD) AND OTHERS v. COSIMO BORRELLI AND OTHERS

LIM YEW CHENG (suing in a personal capacity and derivatively on behalf of himself as a shareholder of KENORA CORPORATION LTD) AND OTHERS v. COSIMO BORRELLI AND OTHERS

The Master did not err and his costs order was reasonable: Plaintiffs failed to negotiate adequate security and ignored a reasonable offer, thereby justifying the award of costs to Defendants; the appeal\u2019s costs are awarded to Defendants and to be taxed if not agreed.

Citation
[2025] HKCFI 2085
Parties
1st Plaintiff (personal and Derivative Claimant as Shareholder of Kenora Corporation Limited): Lim Yew Cheng; 2nd Plaintiff: Lin Minghan; 3rd Plaintiff (personal and Derivative Claimant as Shareholder of Xeno Origin Limited): Ma Kwok Leung; 1st Defendant: Cosimo Borrelli; 2nd Defendant: Meade Wilbur Malone; 3rd Defendant: Guanghua SS Holdings Limited; 4th Defendant: China Cinda (HK) Asset Management Co. Limited; 5th Defendant: Kenora Corporation Limited; 6th Defendant: Xeno Origin Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 May 2025
Case Number
HCA1976/2023
Procedural Posture
Appeal Against Master's Decision on Security for Costs / Appeal (paper Disposal on Costs)
Outcome
Master's costs order upheld; Plaintiffs ordered to pay costs of summonses and of the appeal to Defendants
Legal Topics
Security for Costs, Costs Order, Form of Security, Bank Guarantee, Appeal Against Costs
Source Language
EN
Civil Procedure Costs Security for Costs Company Law Commercial Litigation Costs Order Form of Security Bank Guarantee +1 more

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Parties

Lim Yew Cheng

1st Plaintiff (personal and Derivative Claimant as Shareholder of Kenora Corporation Limited)

Lin Minghan

2nd Plaintiff

Ma Kwok Leung

3rd Plaintiff (personal and Derivative Claimant as Shareholder of Xeno Origin Limited)

Cosimo Borrelli

1st Defendant

Meade Wilbur Malone

2nd Defendant

Guanghua SS Holdings Limited

3rd Defendant

China Cinda (HK) Asset Management Co. Limited

4th Defendant

Kenora Corporation Limited

5th Defendant

Xeno Origin Limited

6th Defendant

Procedural Posture

Appeal Against Master's Decision on Security for Costs / Appeal (paper Disposal on Costs)

Legal Issues

  1. 1 Whether the Master erred in ordering costs to the Defendants
  2. 2 Whether Plaintiffs could vary form of security (banker\u2019s draft/guarantee v cash)
  3. 3 Whether costs of the summonses should be in the cause or awarded to Defendants

Ratio Decidendi

The Master did not err and his costs order was reasonable: Plaintiffs failed to negotiate adequate security and ignored a reasonable offer, thereby justifying the award of costs to Defendants; the appeal\u2019s costs are awarded to Defendants and to be taxed if not agreed.

Court Disposition

Master's costs order upheld; Plaintiffs ordered to pay costs of summonses and of the appeal to Defendants

Orders

  • Consent order dated 19 December 2024 allowing alternative form of security without affecting quantum
  • Master\u2019s security order maintained: Plaintiffs to provide security of HK$1,500,000 for D1 and D2 and HK$1,160,000 for D3 and D4 (quantum unchanged)