Wang Linping and Another v. Huang Keqin and Others

Read the full judgment text of HCMP 632/2012 on BabelCite. This High Court CFI judgment was delivered on 27 May 2020.

1. In paragraph 118 of the decision dated 23 January 2020 (“ the Decision ”), this court made an order nisi that the 1 st Plaintiff do bear 75% of the costs of the Defendants’ summons. This is the 1 st Defendant’s summons to vary the order nisi (“ the costs summons ”) so that:

Cited by 3 cases

Case No.HCMP 632/2012[2020] HKCFI 920
Court
High Court CFI
Date27 May 2020
Judge
Case Document
100%Judiciary

HCMP 632/2012 and
HCA 373/2014

[2020] HKCFI 920

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO 632 OF 2012

____________

  IN THE MATTER of sections 100 and 348 of the Companies Ordinance (Cap 32) and/or inherent jurisdiction of the Court
 

and

  IN THE MATTER of GRANDSOME INDUSTRIAL LIMITED

BETWEEN    
  WANG LINPING (王臨平) 1st Plaintiff
  NIU LEI (牛蕾) 2nd Plaintiff

and

  HUANG KEQIN (黃克勤) 1st Defendant
  CHAN KIN SUN (陳健生) 2nd Defendant
  GRANDSOME INDUSTRIAL LIMITED 3rd Defendant

AND

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO 373 OF 2014

____________

BETWEEN

  WANG LINPING (王臨平) 1st Plaintiff
  NIU LEI (牛蕾) 2nd Plaintiff

and

  CHAN KIN SUN(陳健生) 1st Defendant
  GRANDSOME INDUSTRIAL LIMITED 2nd Defendant
____________
  (Consolidated pursuant to the Order of Master K H Hui dated 13 October 2015)  

Before: Hon Au-Yeung J in Chambers

Closing Date for Written Submission: 17 March 2020

Date of Decision: 27 May 2020

_____________

D E C I S I O N

_____________

1.In paragraph 118 of the decision dated 23 January 2020 (“the Decision”), this court made an order nisi that the 1st Plaintiff do bear 75% of the costs of the Defendants’ summons. This is the 1st Defendant’s summons to vary the order nisi (“the costs summons”) so that:

(a)  Not only the 1st Plaintiff but that both Plaintiffs should bear the costs; and

(b)  The costs order should cover all the costs reserved, including those reserved by DHCJ Keith Yeung on 8 February 2019.

2.Upon receipt of the costs summons, this Court has, on 11 March 2020, in accordance with the usual practice, given directions for disposal of the costs summons on the papers, including directions for the lodging and service of skeleton submissions.

3.The Plaintiffs’ solicitors, Stephenson Harwood (“SH”), has made an application to cease acting for the Plaintiffs but that application was in the process of service in Mainland China.  SH has not yet come off the record. SH confirmed by letter dated 18 March 2020 that they had informed their clients of the Court’s directions but have not received any instructions from the Plaintiffs.

4.Accordingly, the costs summons is dealt with on an uncontested basis.

5.With regard to the first matter for variation, the 1st Defendant’s summons to vary the Undertakings (“underlying summons”) was directed against both Plaintiffs.  Although it was the 1st Plaintiff’s conduct which gave rise to the underlying summons, he was clearly also acting on behalf of and for the benefit of the 2nd Plaintiff.  I therefore agree with the 1st Defendant that the costs order should be varied and made against both Plaintiffs. 

6.With regard to the second matter for variation, an ex parte application was refused by Yau J on 1 February 2019.  The inter partes underlying summons came on for hearing before DHCJ Keith Yeung SC (as he then was) on 8 February 2019.  DHCJ Keith Yeung SC declined to grant any urgent interim relief to the 1st Defendant but adjourned the summons for substantive hearing with directions for the filing of evidence.  The learned judge stated that the case had a long history and was not uncomplicated and urgent interim relief could not be granted before substantive arguments.  He therefore reserved the question of costs for that hearing.  The 1st Defendant now asks for costs of that hearing.

7.Having heard the underlying summons substantively, I entirely agree with the reasons why DHCJ Keith Yeung SC refused to grant urgent interim relief.  I decline to grant any order for costs for the argument for interim relief.  Any costs should be limited to the usual costs of a directions hearing before a summons judge.

8.In summary, I vary the costs order nisi so that both Plaintiffs shall bear 75% of the costs of the underlying summons; and that costs of 8 February 2019 be limited to the costs of a directions hearing.

9.Looking at the 1st Defendant’s costs statement, I find that the costs claimed for the underlying summons are grossly excessive.  Given the long hours that counsel spent on meetings with clients/solicitors and the fees charged for drafting affirmations, the skeleton submission was grossly inadequate in setting out the necessary factual and legal framework to assist the court.  I summarily assess the 75% costs ordered and costs of 8 February 2019 at $430,000. 

10.Costs of the costs summons should follow the event and be to the 1st Defendant.  The 75% order does not apply.  However, the costs of $115,442 sought is grossly excessive having regard to the lack of any complicated issue and the lack of submissions from the Plaintiffs.  There is no basis to engage counsel to argue such a simple costs summons.  I summarily assess the costs for the costs summons at $10,000 with no certificate for counsel.

Conclusion

11.I order as follows:

(1)  The costs order nisi dated 23 January 2020 is varied so that both Plaintiffs shall bear 75% of the 1st Defendant’s costs.  Such costs shall include costs reserved on 8 February 2019 as if it were a directions hearing.

(2)  Costs under sub-paragraph (1) are summarily assessed in the sum of $430,000.

12.Costs of the costs summons be to the 1st Defendant summarily assessed at $10,000.

(Queeny Au-Yeung)
Judge of the Court of First Instance
High Court

The 1st and 2nd Plaintiffs in both cases, represented by Stephenson Harwood, did not file written submission

Written submission by Mr Thomas Lai, instructed by Hui & Lam LLP, for the 1st Defendant in HCMP 632/2012

Participation of the 2nd Defendant in HCMP 632/2012 and the 1st Defendant in HCA 373/2014 represented by KB Chau & Co was excused

The 3rd Defendant in HCMP 632/2012 and the 2nd Defendant in HCA 373/2014 did not file written submission