Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Provision for future costs

Legal area

Court

16 Oct 2012

TELE-ART INC. (IN LIQUIDATION) v. BANK OF CHINA (HONG KONG) LTD

Citation

TELE-ART INC. (IN LIQUIDATION) v. BANK OF CHINA (HONG KONG) LTD
Court

Court of Appeal
Case number

CACV283/2011

On true construction of the share charges the Bank was contractually entitled to recoup from the net proceeds costs incurred in enforcement and related proceedings and was entitled to retain a reasonable amount as provision for reasonably anticipated future costs to finalise the accounting; quantification to be determined subsequently and incurred costs recoverable on an indemnity basis.
30 Nov 2011

TELE ART INC. (IN LIQUIDATION) v. BANK OF CHINA (HONG KONG) LTD

Citation

TELE ART INC. (IN LIQUIDATION) v. BANK OF CHINA (HONG KONG) LTD
Court

Court of First Instance
Case number

HCA2443/2008

The share charge, read as a whole and particularly clause 2.1(j) (together with clauses 11.6, 31.1 and others), entitled the bank to deduct from the sale proceeds the costs and expenses incurred in the listed proceedings because such costs were incurred "in consequence of" the share charge; where assessment is required such costs are to be taxed on a full indemnity basis; prior party-and-party costs orders did not extinguish the contractual right to indemnity in the absence of specific adjudication; and the bank may set aside a reasonable provision for anticipated future costs limited to what…