Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Ability to pay costs

  • 15 Aug 2014

    WELLTUS LTD v. FORNTON KNITTING CO LTD

    Citation
    WELLTUS LTD v. FORNTON KNITTING CO LTD
    Court
    District Court
    Case number
    DCCJ3579/2013

    Defendant failed to establish by credible evidence a reason to believe the plaintiff would be unable to pay the defendant's costs under section 905 CO; the alleged change of registered office did not demonstrate an intent to evade litigation; the overlap between claim and counterclaim meant issues would be litigated regardless and the defendant had become the primary attacker on matters at trial, so on balance the court exercised its discretion to refuse security for costs and dismissed the defendant's application.

  • 4 Nov 2011

    STORM ASSOCIATES HONG KONG LTD v. HINTON ENTERPRISES LTD AND OTHERS

    Citation
    STORM ASSOCIATES HONG KONG LTD v. HINTON ENTERPRISES LTD AND OTHERS
    Court
    Court of First Instance
    Case number
    HCA1137/2009

    On the evidence the plaintiff failed to rebut credible indicia that it would be unable to pay defendants' costs: the STORM website and branding indicated activities ran through Signature, there were multiple warrants for Signature's rent arrears, and the plaintiff declined to provide documentary financial evidence; delay in bringing the application was not decisive; consequentially security for future costs only was ordered in the sum of HK$1.5 million and proceedings were stayed until security is given; no security was ordered for prior costs.

  • 3 May 2005

    SPRITE MASS ENTERPRISES LTD v. LOYAL PROFIT ENTERPRISE LTD

    Citation
    SPRITE MASS ENTERPRISES LTD v. LOYAL PROFIT ENTERPRISE LTD
    Court
    Court of First Instance
    Case number
    HCA1841/2004

    Security for costs was ordered because the defendants presented credible evidence (plaintiff's Companies Registry record showing paid-up capital of HK$10,000 and refusal to provide audited accounts) from which it was reasonable to infer the plaintiff may be unable to pay costs; there was no evidence of assets or income and no persuasive reason to exercise discretion against ordering security; quantum fixed at HK$225,000 per action, staged security rejected, and specified costs directions given.