Read the full judgment text of HCCT 37/2016 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 21 September 2017 before Deputy High Court Judge Anson Wong SC.
Construction Law — Sub-contract dispute — Financial difficulty of subcontractor — Payment obligations under written Sub-Contract — Prematurity of claim before final account settlement — Costs — Discontinuance — General rule that plaintiff bears defendant’s costs upheld — Indemnity costs rejected — Costs of preparing accounts not carved out — Arbitration proceedings on main contract — Stay application withdrawn — Court’s discretion applied focusing on fairness and conduct — Burden on plaintiff not discharged to justify departure from costs rule or carving out account preparation costs — No conclusive finding on merits due to absence of trial — Costs orders made accordingly.
Legal issues: Costs order following discontinuance of action · Whether costs related to preparation of accounts should be carved out
Outcome: Leave granted for plaintiff to withdraw Stay Summons; plaintiff allowed to discontinue action. Plaintiff ordered to pay defendants’ costs to be taxed if not agreed, except costs incurred by defendants after 16 August 2017 for trial preparation which are disallowed. Costs of hearing ordered on a nisi basis for plaintiff to pay defendants.
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