Concentric Construction Ltd v. The Hong Kong Housing Authority

Read the full judgment text of HCCT 27/2017 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 28 June 2018 before Hon Lok J.

Costs assessment — Arbitration stay — Plaintiff and Defendant consented to stay court proceedings for arbitration, with Plaintiff ordered to pay Defendant’s costs on an indemnity basis. Defendant claimed $309,778 for costs; Plaintiff opposed as excessive and requested disclosure. Court held summary assessment on papers appropriate and found some claimed times excessive but recognised extensive document volume necessitated significant preparation. Resulting modest reduction led to costs summarily assessed at $275,000 in favour of Defendant. Costs order confirmed by Hon Lok J on 28 June 2018.

Legal issues: Summary assessment of costs for stay application

Outcome: The Defendant’s costs of the stay application were summarily assessed and awarded in the sum of $275,000.

Case No.HCCT 27/2017[2018] HKCFI 1473
Court
高等法院原訟法庭
Date28 Jun 2018
JudgeHon Lok J
Case Document
100%Judiciary

HCCT 27/2017

[2018] HKCFI 1473

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

CONSTRUCTION AND ARBITRATION PROCEEDINGS

NO. 27 OF 2017

____________

BETWEEN
  CONCENTRIC CONSTRUCTION LIMITED Plaintiff
and
  THE HONG KONG HOUSING AUTHORITY Defendant

____________

Before: Hon Lok J in Chambers
Dates of Filing of Written Submissions: 27 December 2017 and 9 January 2018
Date of Summary Assessment of Costs: 28 June 2018

__________________________________

SUMMARY ASSESSMENT OF COSTS

__________________________________

1.By the consent order dated 11 December 2017, I ordered that all further proceedings in this action be stayed for arbitration. I also ordered that the Plaintiff shall pay the Defendant’s costs of and incidental to the stay application on an indemnity basis to be summarily assessed on papers.

2.This is the summary assessment of such costs.

3.The Defendant filed the Statement of Costs claiming a total amount of $309,778.

4.The Plaintiff’s filed the Grounds of Opposition alleging that the sums claimed are excessive.  Further, the Plaintiff submits that the Defendant should produce the relevant documents to the court to justify the amounts claimed under various items.

5.Since the parties agreed for the costs to be summarily assessed, it is not appropriate for the court to peruse all the documents in the solicitors’ file as in normal taxation proceedings.

6.Having considered the Statement of Costs, I agree that the times spent on items C and D are excessive even taking into account the basis for the taxation.  However, the volume of documents involved in the present case is substantial and so considerable time would still need to be spent in preparing and perusing the documents.

7.The taxing down should be a modest one, and I summarily assess the Defendant’s costs in the sum of $275,000.

  (David Lok)
  Judge of the Court of First Instance
High Court

Written submissions by Hui & Lam LLP for the Plaintiff

Written submissions by Clyde & Co for the Defendant