Chun Wo Construction & Engineering Co. Ltd and Others v. The Hong Kong Housing Authority

Read the full judgment text of CACV 338/2018 on BabelCite. This Court of Appeal judgment was delivered on 15 May 2019 before Lam VP, Cheung JA, Yuen JA.

Costs – indemnity costs – appeal against arbitral award – incompetent appeal – practice that party failing to set aside arbitral award pays indemnity costs – Gao Haiyan v. Keeneye Holdings Ltd (No. 2) [2012] 1 HKC 491 – Grand Pacific Holdings Ltd v. Pacific China Holdings Ltd (in liquidation) (No. 2) [2012] 4 HKLRD 569 – Arbitration Ordinance (Cap. 609) – CACV 338/2018 and CACV 431/2018 – plaintiffs' appeal dismissed – defendant's appeal dismissed as incompetent – both parties applied to vary costs orders – defendant ordered to pay indemnity costs in CACV 431/2018 – plaintiffs ordered to pay indemnity costs in CACV 338/2018 – costs below taxed on indemnity basis

Legal issues: Costs in appeal against arbitral award · Indemnity costs for incompetent appeal

Outcome: In CACV 431/2018, the defendant is ordered to pay indemnity costs to the plaintiffs. In CACV 338/2018, the plaintiffs are ordered to pay indemnity costs to the defendant. The costs below in HCCT 54/2017 are to be taxed on an indemnity basis.

Cited by 1 case · Cites 2 cases

Case No.CACV 338/2018[2019] HKCA 541[2003] 1 AC 563
Court
Court of Appeal
Date15 May 2019
JudgeLam VP, Cheung JA, Yuen JA
Case Document
100%Judiciary

CACV 338/2018 & CACV 431/2018
(Heard Together)

[2019] HKCA 541

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

CIVIL APPEAL NO. 338 OF 2018

(ON APPEAL FROM HCCT NO. 54 OF 2017)

________________________

IN THE MATTER of the Arbitration Ordinance (Cap. 609)
and
IN THE MATTER of Arbitrations

________________________

BETWEEN

CHUN WO CONSTRUCTION & ENGINEERING CO. LTD
1st Plaintiff
(1st Claimant in Arbitrations)
HONG KONG MACAU (ASIA) ENGINEERING CO. LTD
2nd Plaintiff
(2nd Claimant in Arbitrations)
NEW HOPES CONSTRUCTION CO. LTD
3rd Plaintiff
(3rd Claimant in Arbitrations)
SING FAT CONSTRUCTION CO. LTD
4th Plaintiff
(5th Claimant in Arbitrations)
SUN ON ENGINEERING CO. LTD 5th Plaintiff
(6th Claimant in Arbitrations)
WECON LTD 6th Plaintiff
(7th Claimant in Arbitrations)
YAU LEE CONSTRUCTION CO. LTD 7th Plaintiff
(8th Claimant in Arbitrations)
and
THE HONG KONG HOUSING AUTHORITY Defendant
(Respondent in Arbitrations)

________________________

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

CIVIL APPEAL NO. 431 OF 2018

(ON APPEAL FROM HCCT NO. 54 OF 2017)

________________________

IN THE MATTER of the Arbitration Ordinance (Cap. 609)
and
IN THE MATTER of Arbitrations

________________________

BETWEEN

CHUN WO CONSTRUCTION & ENGINEERING CO. LTD 1st Plaintiff
(1st Claimant in Arbitrations)
HONG KONG MACAU (ASIA) ENGINEERING CO. LTD
2nd Plaintiff
(2nd Claimant in Arbitrations)
NEW HOPES CONSTRUCTION CO. LTD 3rd Plaintiff
(3rd Claimant in Arbitrations)
SING FAT CONSTRUCTION CO. LTD 4th Plaintiff
(5th Claimant in Arbitrations)
SUN ON ENGINEERING CO. LTD 5th Plaintiff
(6th Claimant in Arbitrations)
WECON LTD 6th Plaintiff
(7th Claimant in Arbitrations)
YAU LEE CONSTRUCTION CO. LTD 7th Plaintiff
(8th Claimant in Arbitrations)
and
THE HONG KONG HOUSING AUTHORITY
Defendant
(Respondent in Arbitrations)

________________________

(HEARD TOGETHER)

Before : Hon Lam VP, Cheung and Yuen JJA in Court

Dates of Defendant’s letters : 4 April 2019 and 17 April 2019

Date of 2nd, 3rd, 5th and 7th Plaintiffs’ letter : 12 April 2019

Date of Decision on Costs : 15 May 2019

________________________

DECISION ON COSTS

________________________


Hon Cheung JA (giving the Decision on Costs of the Court) :

1.1On 5 March 2019 we dismissed the defendant’s appeal in CACV 431/2018 and gave our reasons on 27 March 2019. We ordered the defendant to pay the plaintiffs the costs of this appeal. On the same date we also gave our judgment in CACV 338/2018 and dismissed the plaintiffs’ appeal. We ordered the plaintiffs to pay the defendant the costs of this appeal.

1.2Both parties applied to vary the costs order.

CACV 431/2018

2.The plaintiffs asked for indemnity costs against the defendant.  As this appeal was incompetent in the first place, the defendant is ordered to pay indemnity costs to the plaintiffs.

CACV 338/2018

3.The practice that a party who failed to set aside an arbitral award is required to pay indemnity costs is well-established by two judgments of this Court in Gao Haiyan v. Keeneye Holdings Ltd (No. 2) [2012] 1 HKC 491 and Grand Pacific Holdings Ltd v. Pacific China Holdings Ltd (in liquidation) (No. 2) [2012] 4 HKLRD 569.   These judgments are binding on us.  Accordingly we will order the plaintiffs to pay indemnity costs to the defendant.  The costs below in HCCT 54/2017 will likewise be taxed on an indemnity basis.

(M H Lam) (Peter Cheung) (Maria Yuen)
Vice-President Justice of Appeal Justice of Appeal

Solicitor of Pinsent Masons, for the 2nd, 3rd, 5th and 7th Plaintiffs

Solicitor of Holman Fenwick Willan, for the Defendant