SMART CROWN INVESTMENT LTD v. LIU CHIU KWAN AND OTHERS

SMART CROWN INVESTMENT LTD v. LIU CHIU KWAN AND OTHERS

The summons (except the table) and the affirmation were unnecessary and thus their costs were wasted, but the wasted costs arose from an error of judgment rather than misconduct or default of sufficient seriousness to attract a personal costs order under Order 62 rule 8; therefore the master's order requiring the appellant solicitors to personally bear those costs was set aside and replaced with no order as to costs.

Citation
SMART CROWN INVESTMENT LTD v. LIU CHIU KWAN AND OTHERS
Parties
1st Plaintiff: SMART CROWN INVESTMENT LIMITED; 2nd Plaintiff: WAH NAM GROUP LIMITED (In Liquidation); 1st Defendant: LIU CHIU KWAN; 2nd Defendant: WONG MIU WAN; 3rd Defendant: OPULENT ASSOCIATES LIMITED; 4th Defendant: EARLY WAY ENTERPRISES LIMITED; Appellant (solicitors for the Plaintiffs): ALLEN & OVERY
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 May 2003
Case Number
HCA3367/2001
Procedural Posture
Civil (costs) / Appeal From Master's Costs Order in Chambers (court of First Instance)
Outcome
Appeal allowed; master's order for appellant firm to personally bear costs set aside; substituted order that there be no order as to costs for the summons (except the Table) and the affirmation; no order as to costs of the appeal.
Legal Topics
Wasted Costs, Personal Liability of Solicitors, Examination of Judgment Debtor, Order 62 Rule 8 RHC, Disclosure at Examinations (order 48/49 Rhc)
Source Language
EN
Civil Procedure Costs Solicitors' Professional Conduct Company Law Insolvency Wasted Costs Personal Liability of Solicitors Examination of Judgment Debtor +2 more

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Parties

SMART CROWN INVESTMENT LIMITED

1st Plaintiff

WAH NAM GROUP LIMITED (In Liquidation)

2nd Plaintiff

LIU CHIU KWAN

1st Defendant

WONG MIU WAN

2nd Defendant

OPULENT ASSOCIATES LIMITED

3rd Defendant

EARLY WAY ENTERPRISES LIMITED

4th Defendant

ALLEN & OVERY

Appellant (solicitors for the Plaintiffs)

Procedural Posture

Civil (costs) / Appeal From Master's Costs Order in Chambers (court of First Instance)

Legal Issues

  1. 1 Whether the appellant firm was given a reasonable opportunity to show cause before a personal costs order was made
  2. 2 Whether the costs of the summons and affirmation were wasted
  3. 3 Whether wasted costs alone justifies a personal costs order against solicitors absent misconduct or default

Ratio Decidendi

The summons (except the table) and the affirmation were unnecessary and thus their costs were wasted, but the wasted costs arose from an error of judgment rather than misconduct or default of sufficient seriousness to attract a personal costs order under Order 62 rule 8; therefore the master's order requiring the appellant solicitors to personally bear those costs was set aside and replaced with no order as to costs.

Court Disposition

Appeal allowed; master's order for appellant firm to personally bear costs set aside; substituted order that there be no order as to costs for the summons (except the Table) and the affirmation; no order as to costs of the appeal.

Orders

  • Master's order dated 10 March 2003 directing the appellant firm to personally bear the costs of the summons (except in relation to the Table) and of the affirmation is set aside
  • There be no order as to costs in respect of the summons (except the Table) and the affirmation