IZUMO MOKKO CO, LTD AND ANOTHER v. T. S. LINES LTD

IZUMO MOKKO CO, LTD AND ANOTHER v. T. S. LINES LTD

Security for costs was ordered. The court accepted the Nasser approach but held that on the facts there are considerable obstacles and extra burdens in enforcing a costs judgment against the plaintiffs in Japan and the Mainland (different legal systems, no reciprocal enforcement arrangements, potential foreign...

Source-derived case information.

Citation
IZUMO MOKKO CO, LTD AND ANOTHER v. T. S. LINES LTD
Parties
1st Plaintiff: IZUMO MOKKO CO, LTD; 2nd Plaintiff: HUIYANG SHEY CHANG TIMBER CO, LTD; Defendant: T. S. LINES LIMITED
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
30 April 2007
Case Number
DCCJ3707/2005
Procedural Posture
District Court Civil Action — Interlocutory Application for Security for Costs (order 23 R.1, Cap.336) / Application Heard and Determined; Reasons for Decision Delivered
Outcome
Application for security for costs allowed in favour of Defendant
Legal Topics
Security for Costs, Enforcement of Foreign Judgments, Jurisdiction, Discrimination Under Bill of Rights
Source Language
en
Civil Procedure Maritime/shipping Law International Enforcement Constitutional/human Rights Security for Costs Enforcement of Foreign Judgments Jurisdiction Discrimination Under Bill of Rights

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Parties

IZUMO MOKKO CO, LTD

1st Plaintiff

HUIYANG SHEY CHANG TIMBER CO, LTD

2nd Plaintiff

T. S. LINES LIMITED

Defendant

Procedural Posture

District Court Civil Action — Interlocutory Application for Security for Costs (order 23 R.1, Cap.336) / Application Heard and Determined; Reasons for Decision Delivered

Legal Issues

  1. 1 Whether security for costs should be ordered under O.23 r.1 against foreign corporate plaintiffs
  2. 2 Whether ordering security for costs against foreign plaintiffs is discriminatory under the Hong Kong Bill of Rights Ordinance
  3. 3 Whether there are substantial obstacles or extra burden in enforcing a costs judgment in Japan or the Mainland

Ratio Decidendi

Security for costs was ordered. The court accepted the Nasser approach but held that on the facts there are considerable obstacles and extra burdens in enforcing a costs judgment against the plaintiffs in Japan and the Mainland (different legal systems, no reciprocal enforcement arrangements, potential foreign exchange controls, language/culture barriers, difficulty locating assets), justifying ordering security. The proper amount for security for costs to the conclusion of trial was fixed at HK$180,000 and the defendant was given liberty to apply for further security if unforeseen events arise; plaintiffs ordered to pay defendant's costs of the application with certificate for counsel.

Court Disposition

Application for security for costs allowed in favour of Defendant

Orders

  • Plaintiffs to provide security for costs in the amount of HK$180,000 for costs up to the conclusion of trial
  • Defendant granted liberty to apply for further security in the event of unforeseen events