Read the full judgment text of CACV 205/2000 on BabelCite. This Court of Appeal judgment was delivered on 26 September 2000 before Rogers VP.
Civil procedure – security for costs – appeal – impecunious company appellant – commercial conveyancing dispute – whether security should be ordered and quantum – Costs in Civil Proceedings – Defendant ordered to provide security – Court of Appeal – application for security for costs of an appeal from a judgment of Cheung J in HCA 8564 of 1998 ordering return of a deposit paid for the purchase of a property and awarding minor damages – defendant/appellant is a company of doubtful means with audited accounts not produced – past profits said to have been lost in unsuccessful further investments – whether security for costs should be ordered – whether sufficient strength in the appeal to dispense with security – whether security for costs of an appropriate case – whether the appeal is an appropriate case for security given the nature of the issues and that it is a large conveyancing case involving commercial entities – held: security for costs ordered – strength of appellant's case not sufficient to dispense with security – amount of security reduced from initial figure of HK$800,000 to HK$500,000 due to short timeframe for lodgment given imminent hearing date – defendant to lodge HK$500,000 by cash, banker's draft or approved bank guarantee on or before 17 October 2000 – stay on appeal proceedings until lodgment – appeal to stand dismissed without further order if default certified by plaintiff's solicitors – costs of the application to be the plaintiff's costs in the appeal – in event of dismissal for default, defendant to pay plaintiff's costs of the appeal to be taxed.
Legal issues: Whether security for costs should be ordered for the appeal · Amount of security for costs and time for lodgment
Outcome: Security for costs of the appeal ordered against the defendant/appellant in the sum of HK$500,000, to be lodged within 3 weeks, with a stay on appeal proceedings in default and dismissal of the appeal if lodgment is not made by the deadline.