HUINONG DELTA INVESTMENTS LTD AND OTHERS v. CCCC FINANCIAL LTD AND OTHERS

HUINONG DELTA INVESTMENTS LTD AND OTHERS v. CCCC FINANCIAL LTD AND OTHERS

Although the plaintiffs' central pleadings contained unexplained inconsistencies and mis‑statements that justified striking out the statement of claim as an abuse of process, the court found no evidence of an ulterior motive, deliberate deception or other special or unusual features sufficient to justify an award of indemnity costs; accordingly the variation application was dismissed, costs follow the event and are to be paid by the defendants, and a certificate for two counsel was refused.

Citation
[2018] HKCFI 952
Parties
1st Plaintiff: HUINONG DELTA INVESTMENTS LTD.; 2nd Plaintiff: UPLAND FINANCIAL GROUP LIMITED (普籃金融集團有限公司); 3rd Plaintiff: EASTERN DELUXE INC. (豪東有限公司); 1st Defendant: CCCC FINANCIAL LIMITED (中国城市国际金融控股集團有限公司); 2nd Defendant: SINCERE WEALTHY INVESTMENT GROUP LIMITED (嘉富信投資集團有限公司); 3rd Defendant: CHNC INVESTMENT CO., LTD.; 4th Defendant: CHONG WING KIN (莊永健); 5th Defendant: CHAN KWAN CHAI (陳君齊); 6th Defendant: CHEN WEIQIN (陳偉欽); 7th Defendant: LIGHTING TRIUMPH LIMITED; 8th Defendant: WANG JIAN (王建); 9th Defendant: JOIN RIGHT INTERNATIONAL LIMITED (合威國際有限公司)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 May 2018
Case Number
HCA2814/2016
Procedural Posture
Derivative Action / Costs Hearing (post‑judgment Striking Out)
Outcome
Application by D2, D4 and D5 to vary the order nisi dismissed; no indemnity costs awarded; costs of the application to follow the event and be paid by the defendants; certificate for two counsel refused.
Legal Topics
Striking Out, Indemnity Costs, Statement of Truth, Abuse of Process, Misleading Pleadings, Double Derivative Action
Source Language
EN
Company Law Civil Procedure Costs Law Derivative Actions Equity Striking Out Indemnity Costs Statement of Truth +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

HUINONG DELTA INVESTMENTS LTD.

1st Plaintiff

UPLAND FINANCIAL GROUP LIMITED (普籃金融集團有限公司)

2nd Plaintiff

EASTERN DELUXE INC. (豪東有限公司)

3rd Plaintiff

CCCC FINANCIAL LIMITED (中国城市国际金融控股集團有限公司)

1st Defendant

SINCERE WEALTHY INVESTMENT GROUP LIMITED (嘉富信投資集團有限公司)

2nd Defendant

CHNC INVESTMENT CO., LTD.

3rd Defendant

CHONG WING KIN (莊永健)

4th Defendant

CHAN KWAN CHAI (陳君齊)

5th Defendant

CHEN WEIQIN (陳偉欽)

6th Defendant

LIGHTING TRIUMPH LIMITED

7th Defendant

WANG JIAN (王建)

8th Defendant

JOIN RIGHT INTERNATIONAL LIMITED (合威國際有限公司)

9th Defendant

Procedural Posture

Derivative Action / Costs Hearing (post‑judgment Striking Out)

Legal Issues

  1. 1 Whether costs should be awarded on an indemnity basis
  2. 2 Whether the plaintiffs' pleadings amounted to an abuse of process warranting striking out
  3. 3 Whether special or unusual features existed to justify indemnity costs

Ratio Decidendi

Although the plaintiffs' central pleadings contained unexplained inconsistencies and mis‑statements that justified striking out the statement of claim as an abuse of process, the court found no evidence of an ulterior motive, deliberate deception or other special or unusual features sufficient to justify an award of indemnity costs; accordingly the variation application was dismissed, costs follow the event and are to be paid by the defendants, and a certificate for two counsel was refused.

Court Disposition

Application by D2, D4 and D5 to vary the order nisi dismissed; no indemnity costs awarded; costs of the application to follow the event and be paid by the defendants; certificate for two counsel refused.

Orders

  • Dismissed variation of Order Nisi sought by 2nd, 4th and 5th defendants
  • Costs of the application to follow the event and be paid by the defendants (party and party basis)