Read the full judgment text of HCCW 108/2015 on BabelCite. This Court of First Instance judgment was delivered on 1 March 2016 before Deputy High Court Judge Le Pichon.
Companies – winding-up – provisional liquidators – costs on discontinuance – opposition to appointment of provisional liquidators – shareholders' dispute – competing bids for control of listed company – second stage of delisting – ex parte appointment – SGM – strike-out of board – opposing contributories – withdrawal of summonses – general rule that discontinuing party bears the other party's costs – whether change of circumstances justifies departure – practical or pragmatic reasons insufficient – change of heart or mind not a change of circumstances – necessity for unreasonable conduct by the successful party – burden on discontinuing party – friendly white knight – exclusivity agreement – resumption proposal to Stock Exchange – whether summonses were justified – ex parte application not to be second-guessed – letters of intent subject to contract – timing of withdrawal after costs incurred – duplication of legal representation – separate legal persons entitled to separate representation – Bermuda law point on authority of directors not appropriate for costs-only hearing – successful party approach – substantially obtained relief – costs of company and Ankang of the 1st summons to be paid by 1st opposing contributories – costs of company and Ankang of the 2nd summons to be paid by 2nd opposing contributories – taxed if not agreed – certificate for counsel.
Legal issues: Whether change of circumstances justifies departure from general rule on costs on discontinuance · Whether the summonses were justified so as to displace the general costs rule · Whether there was unnecessary duplication of legal representation by the company and Ankang · Whether to entertain the Bermuda law point on the authority of the company's directors at the costs hearing
Outcome: Leave granted to the opposing contributories to withdraw their respective summonses. The general costs rule applied and the opposing contributories were ordered to pay the company and Ankang's costs of the summonses.
Cited by 3 cases · Cites 4 cases