Jeanny Helena Franslay v. Sy Chin Mong Stephen and Others

Read the full judgment text of HCCT 38/2018 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 2 September 2019 before Hon Anthony Chan J in Chambers.

Costs — Arbitration enforcement — Late withdrawal of appeals — Reasonableness of instructing counsel at late stage — Plaintiff instructed counsel on the same day when appeals were effectively abandoned by 2nd and 3rd Defendants. Court found applicants responsible for late withdrawal and that costs should be borne by them. However, counsel instruction costs were considered unreasonable and excluded from recoverable costs. Result: Applicants ordered to pay costs of appeals, excluding counsel instruction fees.

Legal issues: Costs liability upon late withdrawal of application

Outcome: The appeals were withdrawn with leave granted; 2nd and 3rd Defendants to pay costs excluding costs of instructing counsel.

Cited by 4 cases

Case No.HCCT 38/2018[2019] HKCFI 2330
Court
高等法院原訟法庭
Date02 Sep 2019
JudgeHon Anthony Chan J in Chambers
Case Document
100%Judiciary

HCCT 38/2018

[2019] HKCFI 2330

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

CONSTRUCTION AND ARBITRATION PROCEEDINGS

NO 38 OF 2018

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IN THE MATTER of an application for leave under sections 84 and 87 of the Arbitration Ordinance (Cap. 609) and Order 73 rules 10(1)(d) and 10(3) of the Rules of the High Court (Cap. 4A) to enforce an Arbitral Award to which the New York Convention applies

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BETWEEN    
  JEANNY HELENA FRANSLAY Plaintiff
  and  
  SY CHIN MONG STEPHEN 1st Defendant
  HUNG MAY YEE ANITA 2nd Defendant
  SY WAI SHAN SANDY 3rd Defendant
  BEL TRADE INVESTMENT HOLDINGS LIMITED 4th Defendant
  MAGIC HARVEST DEVELOPMENTS LIMITED 5th Defendant

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Before: Hon Anthony Chan J in Chambers
Date of Hearing: 2 September 2019
Date of Decision: 2 September 2019

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D E C I S I O N

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1.The appeals have been withdrawn this morning and the court has already given leave for the applicants (2nd and 3rd Defendants) to do so. The only outstanding matter is one of costs. There cannot be any serious argument that generally a party who applies, especially at a very late stage, to withdraw his application has to bear the costs of the other side insofar as that application is concerned. The arguments here boil down to whether it is justified for the respondent (Plaintiff) to instruct counsel at a very late stage to deal with these matters.

2.First and foremost, I believe that the applicants have themselves to blame when it came to withdrawing their applications at a very late stage.

3.On the other hand, it is reasonably clear that by 28 August 2019, the very day when counsel was instructed by the Plaintiff, the position was reasonably clear that the appeals were not going to be pursued and the only outstanding argument was one of costs.

4.I have to bear in mind also that the suggestion by the applicants at the material time was that they would like to put an end to the appeals and have their costs exposure limited.  Therefore, it must have been reasonably clear by the 28 August 2019 that the argument could only be confined to costs.

5.I find that in the circumstances it is a little harsh and unreasonable for the Plaintiff to have instructed counsel to deal with the matter, and I therefore agree with the applicants that the costs should not include the costs of instructing counsel.  I make an order that costs of and occasioned by these appeals, with the exception of the costs of instructing counsel, be paid by the 2nd and 3rd Defendants.

  (Anthony Chan)
  Judge of the Court of First Instance
  High Court

Mr Kenny CP Lin, instructed by Myra Li & Co, for the Plaintiff

The 2nd Defendant appeared in person

The 3rd Defendant appeared in person