Hong Kong Judgment

Court of Appeal

TCW v. LC

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Source document

01

Holding and result

Costs are discretionary in family cases and, on the facts of this appeal (offers, concessions and rejected grounds), it was fair and reasonable to confirm the order nisi that there be no order as to costs and to order that the costs of the day be part of the appeal costs.

Court disposition

Appeal allowed; cross-appeal dismissed; costs order nisi confirmed (no order as to costs).

Orders

  • Appeal allowed and cross-appeal dismissed.
  • Costs order nisi confirmed: there will be no order as to costs.
  • Costs of today to be part of the appeal costs.

02

Material facts

Parties

TCW

Respondent (appellant) Counsel: Ms Lisa Remedios (instructed by Messrs Tsang, Chan & Wong)

Petitioner

Petitioner (respondent) Counsel: Mr Robin Egerton (instructed by Messrs Simon C W Yun)

Amounts and remedies

  • Award Sought by Husband at One Stage: HKD 15,000,000
  • Husband's Earlier Target Reduction: HKD 22,000,000
  • Wife's Eventual Entitlement Conceded at Hearing (approx): HKD 21,000,000
  • Husband's Earlier Open Proposal of Cash Payment: HKD 1,500,000
  • Husband's Later Indicated Payment Over Five Years: HKD 6,000,000

03

Procedural history

  1. Posture

    Civil Appeal (court of Appeal) / Application to Vary Costs Order Nisi After Judgment on Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
Husband (through Ms Remedios) argued costs should prima facie follow the event even in family cases; the wife's maintenance claim was unreasonable; husband had offered shares/refinancing and the court's order reflects those offers (comparable to Calderbank) so husband should obtain costs.
Respondent
Wife (through Mr Egerton) pointed out husband had sought to reduce the award from $22,000,000 to just over $15,000,000 and only conceded at hearing to about $21,000,000; husband opposed wife and children having a new car; several grounds of the husband's appeal were rejected, supporting no order as to costs.

05

Court’s reasoning

  1. 01

    Gojkovic v Gojkovic (No. 2) [1992] 1 All ER 267

    Costs in family proceedings are a discretionary matter; courts may nevertheless treat costs as prima facie following the event subject to exceptions.

  2. 02

    Hong Kong Court of Appeal judgment CACV 139/2006 (21 March 2007)

    Exercise of discretion on costs requires evaluation of the fairness and reasonableness of making or varying a costs order on the facts of the case.

06

Ratio, limits and disposition

Ratio decidendi

Costs are discretionary in family cases and, on the facts of this appeal (offers, concessions and rejected grounds), it was fair and reasonable to confirm the order nisi that there be no order as to costs and to order that the costs of the day be part of the appeal costs.

Obiter and limits

  • The court noted the parties' discussion and the court's allowance to pay part of the lump sum by shares was comparable to a Calderbank offer.
  • Children cases may be an exception to the general proposition that costs follow the event.

Court disposition

Appeal allowed; cross-appeal dismissed; costs order nisi confirmed (no order as to costs).

  • Appeal allowed and cross-appeal dismissed.
  • Costs order nisi confirmed: there will be no order as to costs.
  • Costs of today to be part of the appeal costs.

Source and reliance status

Court of Appeal · 21 March 2007

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Judgment reading view

Judgment text

The complete available source text.

Source document

Court of Appeal

Judgment· 21 March 2007

TCW v. LC

bjbj CACV 139/2006

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL CIVIL APPEAL NO. 139 OF 2006 (ON APPEAL FROM fcmc nO. 12816 OF 2004) _______

BETWEEN TCW Respondent (Appellant) and Petitioner (Respondent) ______ Before: Hon Cheung JA, Yeung JA and Sakhrani J in Court Date of Hearing: 21 March 2007 Date of Judgment: 21 March 2007

J U D G M E N T Hon Yeung JA (giving the judgment of the court): On 1 December 2006, this Court handed down a judgment allowing the husband s appeal and dismissing the wife s cross appeal. The court made an order nisi that there be no order as to costs. The husband now seeks to vary the order nisi on costs. Mrs Liza Remedios, on behalf of the husband argues that even in family cases, costs should prima facie follow the event, except perhaps in children cases. Mrs Remedios relies on Gojkovic v Gojkovic (No. 2) [1992] 1 All ER 267. She submits that the wife s request for the maintenance of the children was unreasonable and unsupported. Mrs Remedios further points out that shortly after the start of the appeal hearing, the parties had a discussion to see if the wife was willing to accept shares in lieu of cash to satisfy in whole or in part the balance of the award and whether she would agree to allow the husband to obtain refinancing on the property/properties. However, the wife rejected the suggestion. Mrs Remedios emphasizes that the order made by this court has the effect of allowing the husband to pay part of the lump sum by shares and that the husband was further allowed to obtain re-financing on the properties, very much in line with his offers to the wife at the discussion. She says the situation was comparable to a situation where a Calderbank offer was accepted. As Mr

Egerton for the wife quite rightly points out, the husband had sought to reduce the award from $22 million to just over $15 million and only conceded at the hearing that the wife should be entitled to about $21 million. The husband even objected to the wife and the children having a new car. Despite the husband s earlier open proposal of only cash payment of $1.5 million, he indicated in the course of the hearing that he was prepared to pay $6 million over a period of five years. It may not be necessary to re-visit all the issues raised at the earlier hearing, but some of the other grounds advanced by the husband in the appeal were rejected. The question of costs is always a discretionary matter, particularly in family cases. We are satisfied that the costs order nisi is all the circumstances, fair and reasonable. We therefore confirm the costs order nisi. We also order that costs of today to be part of the appeal costs, i.e. there will be no order as to costs. (Peter Cheung) (Wally Yeung) (Arjan Sakhrani) Justice of Appeal Justice of Appeal Judge of the Court of First Instance Ms Lisa Remedios instructed by Messrs Tsang, Chan & Wong for the Respondent(Appellant) Mr Robin Egerton instructed by Messrs Simon C W Yun 1udk 1udk 1Vt^ H; < ?"w(M & 6" ABC final.dot setup Microsoft Word 9.0 Judiciary Title Source Erica Microsoft Word Document MSWordDoc Word.Document.8

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Gojkovic v Gojkovic (No. 2) [1992] 1 All ER 267

Case cited

CACV 139/2006 (Hong Kong Court of Appeal, 21 March 2007)

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