Hong Kong Case Law: Decisions & Judgments

Topic

Contractual costs clause

Legal area

Court

27 Oct 2022

WHARF REALTY LTD v. ABEBI LTD t/a “ARMANI JUNIOR”

Citation

[2022] HKCFI 3357
Court

Court of First Instance
Case number

HCA954/2020

The court varied the costs order nisi to tax the plaintiff's costs on a party and party basis because no wholly exceptional circumstances justified inter partes solicitor and own client taxation despite the contractual clause, and the plaintiff made no submissions to justify departing from the standard party and party basis; costs of the variation application were ordered for the defendants on a party and party basis.
4 May 2016

LAW SHU KEUNG STEPHEN t/a EXCEL FINANCE COMPANY v. NG MING AND OTHERS

Citation

LAW SHU KEUNG STEPHEN t/a EXCEL FINANCE COMPANY v. NG MING AND OTHERS
Court

District Court
Case number

DCMP3032/2014

The court held that despite the proceedings being commenced under the Petition Ordinance, in substance they were part and parcel of enforcement proceedings under clause 6.01 of the legal charge and therefore costs fall within clause 14.01; accordingly the earlier costs order nisi was varied and costs were awarded on an indemnity basis, with issues of duplication to be addressed by taxation or assessment.
24 May 2013

DBS BANK (HONG KONG) LTD v. SAN-HOT HK INDUSTRIAL CO LTD AND ANOTHER

Citation

DBS BANK (HONG KONG) LTD v. SAN-HOT HK INDUSTRIAL CO LTD AND ANOTHER
Court

Court of First Instance
Case number

HCA2279/2008

Because counsel had notified the bench of the plaintiff's reliance on the contractual costs clause during trial, the defendants did not show any prejudice, and precedent requires giving effect to contractual costs clauses absent good reason, the court exercised its discretion to vary the costs order nisi from party-and-party to indemnity basis and ordered defendants to pay costs of the variation summons to the plaintiff on an indemnity basis if not agreed.
11 Aug 2010

STANDARD CHARTERED BANK (HONG KONG) LTD v. SWEETMART GARMENT WORKS LTD AND OTHERS

Citation

STANDARD CHARTERED BANK (HONG KONG) LTD v. SWEETMART GARMENT WORKS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA1807/2005

Leave to appeal against the costs order was granted because the Court of Appeal will hear the substantive appeal and is thus seized of the factual matrix, and because the issue of indemnity costs clauses in commercial documents merits appellate clarification given inconsistent judicial practice; although the judge did not find his original decision plainly wrong, exceptional circumstances justified granting leave.
9 Jun 1986

GTE DIRECTORIES (HK) LTD v. LEE WAI MING t/a W.N. LEE & CO

Citation

GTE DIRECTORIES (HK) LTD v. LEE WAI MING t/a W.N. LEE & CO
Court

District Court
Case number

DCCJ2410/1986

Where a plaintiff claims a debt or liquidated demand and an express contractual provision entitles recovery of costs on a solicitor and own client basis, a District Court judge has discretion to award those costs in default judgment and is not bound by the fixed costs in Part II of the Second Schedule to the Costs Rules; the contractual provision is enforceable subject to taxation of costs and absent public policy objection.

Hong Kong Case Law

WHARF REALTY LTD v. ABEBI LTD t/a “ARMANI JUNIOR”

LAW SHU KEUNG STEPHEN t/a EXCEL FINANCE COMPANY v. NG MING AND OTHERS

DBS BANK (HONG KONG) LTD v. SAN-HOT HK INDUSTRIAL CO LTD AND ANOTHER

STANDARD CHARTERED BANK (HONG KONG) LTD v. SWEETMART GARMENT WORKS LTD AND OTHERS

GTE DIRECTORIES (HK) LTD v. LEE WAI MING t/a W.N. LEE & CO