Hong Kong Judgment

Court of Appeal

WING LEE ENGINEERING & TECHNICAL SERVICES LTD v. ALLIANCE BUILDING SERVICES ENGINEERING LTD

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Source document

01

Holding and result

The application for a stay of execution was refused because the applicant failed to show the appeal was highly likely to succeed and the plaintiff's offer to have recovered costs held by its solicitors removed the asserted risk that funds could not be returned.

Court disposition

Application for stay of execution refused with costs.

Orders

  • Application for stay of execution refused
  • Costs awarded to the plaintiff

02

Material facts

Amounts and remedies

  • Judgment Sum: HKD 214,046
  • Costs Taxed: HKD 229,360
  • Interest on Costs: HKD 23,549.39
  • Total Costs and Interest: HKD 252,909.39
  • Trial Length Days: 4

03

Procedural history

  1. Posture

    Civil Appeal / Application for Stay of Execution Pending Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
The defendant/applicant sought a stay of execution of costs pending the appeal, relying on the merits of the appeal and alleging the plaintiff had ceased business and defaulted in MPF payments so that recovered funds might not be returnable.
Respondent
The plaintiff/respondent opposed the stay, filed evidence refuting cessation of business and MPF default, noted the judgment debt had been satisfied via garnishee proceedings, and offered that any recovered costs could be held by the plaintiff's solicitors pending the appeal, removing the risk.

05

Court’s reasoning

  1. 01

    Wenden Engineering Services Co. Ltd v Lee Shing Yue Construction Co. Ltd., HCCT 90 of 1999, 17 July 2002 (Ma J)

    Applicant for a stay must justify the stay; the merits of the appeal are a relevant consideration but arguability alone is insufficient — the appeal must be likely to succeed to warrant a stay in typical cases.

  2. 02

    Reasoning of Vice‑President Robert Tang in this judgment

    Where the risk of inability to repay is alleged, the court may accept security or an agreement to hold funds by solicitors to mitigate that risk and negate the need for a stay.

06

Ratio, limits and disposition

Ratio decidendi

The application for a stay of execution was refused because the applicant failed to show the appeal was highly likely to succeed and the plaintiff's offer to have recovered costs held by its solicitors removed the asserted risk that funds could not be returned.

Obiter and limits

  • Granting leave to appeal on arguability does not equate to a high likelihood of success on the appeal
  • Satisfaction of the principal judgment debt by garnishee proceedings is relevant to the assessment of risk in stay applications

Court disposition

Application for stay of execution refused with costs.

  • Application for stay of execution refused
  • Costs awarded to the plaintiff

Source and reliance status

Court of Appeal · 1 March 2007

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Judgment text

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Source document

Court of Appeal

Judgment· 1 March 2007

WING LEE ENGINEERING & TECHNICAL SERVICES LTD v. ALLIANCE BUILDING SERVICES ENGINEERING LTD

bjbj 8l)R R gP z gP fendant was given leave by this court to appeal the judgment of Deputy District Judge W K Kwok, which was handed down on 21 March 2006 after a trial which lasted 4 days. Under that judgment, the defendant was ordered to pay the plaintiff the sum of $214,046 together with interests thereon at the judgment rate, as well as costs to be taxed if not agreed. I understand that so far as the judgment debt is concerned, that had been the subject matter of garnishee proceedings, which resulted in the plaintiff being paid in full amount. Costs had since been taxed at $229,360 together with interest of $23,549.39, making a total of $252,909.39, and the allocatur has been issued and served on the defendant. This is the defendant s application for a stay of execution in respect of such costs pending the appeal. The appeal has been fixed for hearing on 29 March 2007. There has been no stay of execution in relation to the judgment debt. Indeed, there had been an application before the judge which was refused by him. And as I have said, the judgment has been satisfied. The principles regarding stay of execution can be taken from the judgment of Ma J (as he then was) in Wenden Engineering Services Co. Ltd. v Lee Shing Yue Construction Co. Ltd., HCCT 90 of 1999, (unreported) 17 July 2002. It is for the applicant for a stay to justify a stay. Here the defendant seeks to do so

first on the basis of the merit of the appeal. The merit or lack of it is a relevant consideration, but this is not a case where the defendant can show that its appeal is highly likely to succeed. That is so notwithstanding that Le Pichon JA and Kwan J saw fit to grant leave to appeal overruling Yeung JA s refusal. But that was simply on the basis that the defendant had an arguable appeal. Having carefully considered the judgment of the Deputy District Judge Kwok as well as his decision refusing leave to appeal, I must say I am not satisfied that there is anything so particular or substantial about the merits of this appeal that execution should be stayed. The other reason is the allegation that the plaintiff has ceased business and had defaulted in paying MPF. It is said, therefore, that the plaintiff would not be able to return the money if paid. There is evidence filed on behalf of the plaintiff refuting both these allegations. Mr Raymond Fong, who appears for the applicant, asked for an adjournment so that the defendant could deal with this matter. However, I have been told by Mr Damien Wong, who appears for the plaintiff, that the plaintiff is agreeable to having the amount recovered, should a stay of execution not be granted, to be held by their solicitors, pending the disposal of the appeal. That being the case, this ceases to be a point, because if the costs so recovered should be held by the solicitors on behalf of the plaintiff, then the financial circumstances of the plaintiff should cease to matter. I refuse this application for a stay of execution with costs. (Robert Tang) Vice-President Mr. Damien Wong, instructed by Messrs. Benny Kong & Peter Tang, for the Plaintiff. Mr. Raymond Wong, instructed by Messrs. Fung, Wong, Ng & Lam, for the Defendant.

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T U V 1udk 1udk Normal.dot setup Microsoft Word 9.0 Judiciary Hong Kong SAR Title 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.

Wenden Engineering Services Co. Ltd. v Lee Shing Yue Construction Co. Ltd., HCCT 90 of 1999, 17 July 2002

Case cited

Deputy District Judge W K Kwok, judgment 21 March 2006 (unreported)

Case cited

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