Compania Sud Americana De Vapores S.A. v. Hin-pro International Logistics Ltd

Read the full judgment text of FACV 1/2016 on BabelCite. This Court of Final Appeal judgment was delivered on 13 January 2017 before Chief Justice Ma, Mr Justice Ribeiro PJ, Mr Justice Tang PJ, Mr Justice Fok PJ, Lord Phillips of Worth Matravers NPJ.

Costs – special circumstances – usual rule that costs follow the event – fortuity of reduced damages not a special circumstance – arguments always central to litigation – Receivership Order no significant impact – certificate for two counsel – Hebei Enterprises Ltd v Livasiri & Co – HKSAR v Pang Hung Fai (No.2) – Moral Luck Finance Limited v Cheung Kwai Yin – appeal by CSAV against Hin-Pro – costs ordered in favor of CSAV – all costs paid by Hin-Pro

Legal issues: Departure from usual costs order

Outcome: Costs ordered in favor of CSAV; Hin-Pro to pay costs of and occasioned by the appeal, including costs below and costs of the application for leave to appeal, with certificate for two counsel.

Cited by 2 cases · Cites 1 case

Case No.FACV 1/2016
Court
Court of Final Appeal
Date13 Jan 2017
JudgeChief Justice Ma, Mr Justice Ribeiro PJ, Mr Justice Tang PJ, Mr Justice Fok PJ, Lord Phillips of Worth Matravers NPJ
Case Document
100%Judiciary

FACV No. 1 of 2016

IN THE COURT OF FINAL APPEAL OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

FINAL APPEAL NO. 1 OF 2016 (CIVIL)

(ON APPEAL FROM CACV NO. 243 OF 2014)

____________________

BETWEEN

  COMPANIA SUD AMERICANA DE VAPORES S.A. Plaintiff/
Appellant
  and
  HIN-PRO INTERNATIONAL LOGISTICS LIMITED Defendant/
Respondent

____________________

Before : Chief Justice Ma, Mr Justice Ribeiro PJ, Mr Justice Tang PJ, Mr Justice Fok PJ and Lord Phillips of Worth Matravers NPJ
Date of Judgment : 13 January 2017

__________________________

JUDGMENT ON COSTS

__________________________

The Court:

1.CSAV seeks an order that Hin-Pro pay all its costs here and below. In doing so it relies on the principle that, in the absence of special circumstances costs should follow the event.  CSAV submits that it has succeeded on all three questions of public importance in respect of which permission to appeal was given and on the “or otherwise” ground.

2.Hin-Pro submits (i) that CSAV should only recover half of the costs incurred in this Court and below and (ii) should pay Hin-Pro’s costs in relation to the grant and discharge of the Receivership Orders.

3.As to (i) Hin-Pro rely on the fact that the damages to which these proceedings relate are likely to be very much smaller than was anticipated when the proceedings were commenced.  We do not consider that this fortuity is any reason for departing from the usual order as to costs.

4.Hin-Pro also submits that CSAV has succeeded on arguments that were not advanced below.  We do not agree.  The important issues that have been resolved by this Court have always been at the heart of this litigation.

5.In relation to (ii) Hin-Pro relies upon the fact that CSAV did not seek to revive the Receivership Order before this Court.  In the courts below the Receivership Order stood or fell with the other relief.  It had no significant impact on the costs incurred.

6.In these circumstances we can see no reason for departing from the usual order.  We consider that the issues raised on this appeal justified the employment of two counsel[1].  Accordingly we would make the following order, as sought by CSAV:

Costs of and occasioned by this appeal, including the costs of the application for leave to appeal and costs below including costs of CSAV’s application for a stay of execution before DHCJ Wilson Chan and the Court of Appeal and all costs reserved, be paid by Hin-Pro to CSAV, to be taxed if not agreed, with certificate for two counsel.[2]

(Geoffrey Ma)
Chief Justice
(R.A.V. Ribeiro)
Permanent Judge
(Robert Tang)
Permanent Judge

(Joseph Fok)
Permanent Judge

(Lord Phillips of Worth Matravers)
Non-Permanent Judge

Written submissions by Mr John Scott SC and Ms Frances Lok, instructed by Stephenson Harwood, for the Appellant

Written submissions by Mr George Chu, instructed by Damien Shea & Co., for the Respondent



[1] As the Court has previously indicated, it is not necessary for a party in whose favour a costs order is made to obtain a certificate to this effect (Hebei Enterprises Ltd v Livasiri & Co (A Firm), FACV 25/2007, unrep., Judgment on Costs (5 December 2008) at [4], HKSAR v Pang Hung Fai (No.2) (2015) 18 HKCFAR 1 at [10-15], and Moral Luck Finance Limited v Cheung Kwai Yin, FACV 5 & 6/2015, unrep., Judgment on Costs (11 September 2015) at [4]).  Had the application been solely for such certification, the costs of seeking the certificate would have been disallowed.

[2] For the avoidance of doubt, such costs include the costs of making submissions in relation to costs.