Hong Kong Case Law: Decisions & Judgments

Topic

Payment of legal fees

Legal area

Court

10 Jul 2020

SO KEUNG YIP & SIN (A FIRM) v. GOLD HORN INTERNATIONAL ENTERPRISES GROUP LTD AND ANOTHER

Citation

[2020] HKCFI 1418
Court

Court of First Instance
Case number

HCA1027/2019

Engagement letters signed by the clients and Mr Poon created joint and several liability; the Former Clients failed to present particulars or contemporaneous evidence of any agreement to defer payment until QT or of excessive charges; those contentions did not amount to triable issues or arguable defences, so summary judgment on liability was entered and the Court validly imposed conditions for taxation (80% interim payment to the Firm and 20% into Court with time-limited taxation proceedings) under its discretion pursuant to s67 LPO principles.
12 Oct 2015

CHUI & LAU (A FIRM) v. SELLON ENTERPRISES LTD

Citation

CHUI & LAU (A FIRM) v. SELLON ENTERPRISES LTD
Court

District Court
Case number

DCCJ2230/2013

The court found on the evidence that Lei, as sole director, entered into three oral agreements and repeatedly assured the firm that Sellon would pay outstanding legal costs upon sale of the Property; those assurances and conduct bound Sellon by actual and apparent authority; the cause of action accrued on the sale contingency and, in any event, acknowledgements (the faxes) refreshed limitation; the itemised bills were reasonable and not shown to be inflated; accordingly judgment for the firm for HK$462,559.79 with interest and costs was entered against Sellon.
28 Mar 2007

RE LEGEND INTERNATIONAL RESORTS LTD

Citation

RE LEGEND INTERNATIONAL RESORTS LTD
Court

Court of First Instance
Case number

HCCW1139/2004

Payments incurred in resisting the appointment of provisional liquidators were in the interests of the creditors as a whole and thus capable of validation; however, fees reasonably attributable to an unsuccessful strike-out application were not justified and should be apportioned out. Accordingly the court validated the entire first payment and 60% of the second payment, refusing validation of 40% of the second payment as attributable to the unsuccessful strike-out application.
24 May 2006

RE THE TUNG ON PLUMBING CO, LTD ("TUNG ON")

Citation

RE THE TUNG ON PLUMBING CO, LTD ("TUNG ON")
Court

Court of First Instance
Case number

HCCW818/2005

Validation granted for one month's salaries and for purchase of materials because those payments were necessary to complete near‑finished projects, prevent greater loss and were not shown to prejudice creditors; validation refused for professional/legal fees because paying such fees from insolvent assets would prejudice unsecured creditors and there was no sufficient justification to depart from ordinary practice.
13 Feb 2001

KWAN KAM WAH v. CHAN WAI MING AND OTHERS

Citation

KWAN KAM WAH v. CHAN WAI MING AND OTHERS
Court

Court of First Instance
Case number

HCCW632/1999

On the evidence before the court at interlocutory stage, payments to transportation/import agents and payment of legal fees are permissible as ordinary business expenses under the validation order given sufficient business reasons and existing practice; repayment of shareholder/director loans is not within the scope of the validation order but where repayments have been restored to the company no variation is required; requiring the petitioner’s written consent for payments is impracticable and unjust and is refused.

Hong Kong Case Law

SO KEUNG YIP & SIN (A FIRM) v. GOLD HORN INTERNATIONAL ENTERPRISES GROUP LTD AND ANOTHER

CHUI & LAU (A FIRM) v. SELLON ENTERPRISES LTD

RE LEGEND INTERNATIONAL RESORTS LTD

RE THE TUNG ON PLUMBING CO, LTD ("TUNG ON")

KWAN KAM WAH v. CHAN WAI MING AND OTHERS