ZHANG RUI KANG AND ANOTHER v. TUNGHSU GROUP CO LTD

ZHANG RUI KANG AND ANOTHER v. TUNGHSU GROUP CO LTD

The appeal was allowed because the plaintiffs, as foreign judgment creditors adjudicated by a competent court, satisfied the bona fide claim test and warranted special treatment such that security for costs should not be ordered; the defendant failed to discharge its burden to show reasons to displace that starting...

Source-derived case information.

Citation
[2026] HKCFI 954
Parties
1st Plaintiff: ZHANG RUI KANG; 2nd Plaintiff: LE HUAN-HSIN; Defendant: TUNGHSU GROUP CO., LTD.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 February 2026
Case Number
HCA1391/2021
Procedural Posture
Enforcement of Foreign Judgment; Interlocutory Application for Security for Costs / Appeal From Master's Decision (de Novo Hearing Before Deputy High Court Judge)
Outcome
Appeal allowed; Order of Master Lok set aside; Defendant's summons for security for costs dismissed; security paid into court returned; costs awarded to Plaintiffs
Legal Topics
Security for Costs, Recognition and Enforcement of Foreign Judgment, Default Judgment, Delay, Reciprocal Enforcement
Source Language
en
Civil Procedure Enforcement of Foreign Judgment Costs Security for Costs Recognition and Enforcement of Foreign Judgment Default Judgment Delay Reciprocal Enforcement

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Parties

ZHANG RUI KANG

1st Plaintiff

LE HUAN-HSIN

2nd Plaintiff

TUNGHSU GROUP CO., LTD.

Defendant

Procedural Posture

Enforcement of Foreign Judgment; Interlocutory Application for Security for Costs / Appeal From Master's Decision (de Novo Hearing Before Deputy High Court Judge)

Legal Issues

  1. 1 Whether court should order security for costs under Order 23 Rule 1 against foreign plaintiffs
  2. 2 Whether plaintiffs as judgment creditors warrant special treatment against orders for security for costs
  3. 3 Whether a New York default judgment is distinguishable from a judgment on the merits for these purposes

Ratio Decidendi

The appeal was allowed because the plaintiffs, as foreign judgment creditors adjudicated by a competent court, satisfied the bona fide claim test and warranted special treatment such that security for costs should not be ordered; the defendant failed to discharge its burden to show reasons to displace that starting position, so the Master's order granting security was set aside, the defendant's summons dismissed, and the security and assessed costs were ordered returned/paid to the plaintiffs.

Court Disposition

Appeal allowed; Order of Master Lok set aside; Defendant's summons for security for costs dismissed; security paid into court returned; costs awarded to Plaintiffs

Orders

  • Order of Master Lok dated 31 July 2025 set aside
  • Defendant's Summons dated 23 April 2025 dismissed