Hong Kong Case Law: Decisions & Judgments

Topic

Costs estimation

Legal area

Court

9 Aug 2022

HUI (ANNIE) GUO v. YUEDONG XU AND OTHERS

Citation

[2022] HKCFI 2423
Court

Court of First Instance
Case number

HCCL3/2019

The revised bill was found to be grossly inflated and unreliable (notably unexplained additions of significant hours for an associate), the 1st defendant failed to show how prior security had been expended and the bill did not distinguish incurred from projected costs; applying experience and common sense the court fixed a sensible lump sum security of HK$4,600,000 for costs up to and including trial and ordered payment into court within 28 days with a self‑executory dismissal in default.
6 Oct 2014

CEP LTD v. 無鍚市佳誠太陽能科技有限公司

Citation

CEP LTD v. 無鍚市佳誠太陽能科技有限公司
Court

Court of Appeal
Case number

CACV97/2014

The court exercised its discretion to fix security for costs at $442,030 after rejecting both parties' estimates as unrealistic, allowing assessed amounts for the security application costs, solicitors' fees, counsel fees (allowing a single reasonably competent counsel fee of $200,000), and disbursements, and ordered lodgement of that sum as security with stay and dismissal consequences if not complied with.
12 Mar 2007

KELSO ENTERPRISES LTD v. LIU YIU KEUNG STEPHEN AND ANOTHER

Citation

KELSO ENTERPRISES LTD v. LIU YIU KEUNG STEPHEN AND ANOTHER
Court

Court of Appeal
Case number

CACV303/2006

Ordered security for costs of $275,000 because that sum reasonably covers the fees of a senior and junior counsel and solicitor for a short appeal; security is assessed by reference to reasonable conduct of the case rather than parties' asserted or actual fees.
2 Aug 2004

BESTWAY INFLATABLES & MATERIAL CORPORATION v. GREYLAND TRADING LTD AND ANOTHER

Citation

BESTWAY INFLATABLES & MATERIAL CORPORATION v. GREYLAND TRADING LTD AND ANOTHER
Court

Court of First Instance
Case number

HCA3709/2002

Appeal allowed in part: security for costs is appropriate but quantum must be reasonable and limited to a suitable procedural stage; it was premature to order security to cover trial and the correct security to the checklist stage is HK$800,000, with the plaintiff to pay the balance of HK$280,000 within 14 days and proceedings stayed until payment; Master Kwan's costs order was left undisturbed and the 1st defendant awarded one-third of the costs of the appeal.
28 Apr 2004

RUDOLF A. OETKER KG v. THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL "LIBERTY CONTAINER"

Citation

RUDOLF A. OETKER KG v. THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL "LIBERTY CONTAINER"
Court

Court of First Instance
Case number

HCAJ271/2003

Having considered the parties' competing figures, the judge exercised discretion to set a compromise quantum of $700,000 as reasonable security for costs given the estimated three‑day hearing and judicial experience in cost assessment; security to be provided within 14 days in a form satisfactory to the defendants; costs of the security application to be costs in the main Order 12, r.8 application.
28 Apr 2004

RUDOLF A. OETKER KG v. THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL "KINGDOM CONTAINER"

Citation

RUDOLF A. OETKER KG v. THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL "KINGDOM CONTAINER"
Court

Court of First Instance
Case number

HCAJ270/2003

The judge exercised discretion to fix security at an intermediate figure of $700,000 because the defendants' claim of $1,200,000 was excessive and the plaintiff's offer of $500,000 was insufficient, having regard to the estimated three‑day hearing, the difficulty of the legal issues and expected counsel fees; security must be provided within 14 days in a form satisfactory to the defendants.
10 Sept 2002

WING HANG BANK LTD. v. CRYSTAL JET INTERNATIONAL LTD. AND OTHERS

Citation

WING HANG BANK LTD. v. CRYSTAL JET INTERNATIONAL LTD. AND OTHERS
Court

Court of Appeal
Case number

CACV255/2002

Given the uncontested evidence that the 1st defendant corporation is impecunious, its shareholders lack funds, the properties have been sold by mortgagees, and the appeal is unlikely to succeed because it relies on an unpleaded defence not raised at trial, the court exercised its discretion to order security for costs in the amount of HKD 200,000 to be paid into court within 28 days, failing which the appeal is to be dismissed.
6 Mar 2002

XIN NAN (H.K.) TRADING DEVELOPMENT CO. LTD. v. HO HUNG AND ANOTHER

Citation

XIN NAN (H.K.) TRADING DEVELOPMENT CO. LTD. v. HO HUNG AND ANOTHER
Court

Court of First Instance
Case number

HCA10685/1997

The Judge held that security for costs was justified given the plaintiff's precarious financial position and the risk to defendants, but that the sum ordered by Master Rogers ($2,000,000) was excessive. The court exercised its discretion to reduce the security to $1,000,000 as a reasonable amount to cover defendants' costs up to and including the forthcoming PRC examination, while allowing defendants to apply for further security if necessary.
8 Mar 2000

WIDE LINK LTD. v. TAM SING CHEONG AND OTHERS

Citation

WIDE LINK LTD. v. TAM SING CHEONG AND OTHERS
Court

Court of Appeal
Case number

CACV151/1999

Leave to appeal to the Court of Final Appeal was granted because the matter in dispute exceeded one million dollars; however leave was conditional on the appellant entering security of $400,000 for the due prosecution of the appeal and for costs for all three defendants, the court finding the respondents' proposed estimate of $1.2 million unrealistic.
10 Dec 1999

CLINTON ENGINEERING LTD. v. TRIDANT ENGINEERING CO. LTD.

Citation

CLINTON ENGINEERING LTD. v. TRIDANT ENGINEERING CO. LTD.
Court

Court of First Instance
Case number

HCCT98/1999

Because the Plaintiff is a foreign B.V.I. company without assets in Hong Kong and there are no unusual circumstances to displace the presumption, the Defendant was entitled to security for costs; the court applied a broad reduction to the Defendant's full estimated bill and ordered security of $2,500,000, releasing $500,000 plus interest to the Plaintiff from the interim $3,000,000 deposit.