Chen Hongqing v. Asia Cement Corporation

Read the full judgment text of HCA 1304/2017 on BabelCite. This High Court CFI judgment was delivered on 13 September 2021.

1. I refer to my decision handed down on 16 March 2021 (the “ Decision ”) [1] . The 962 Ds and ACC have made applications for summary assessment of the costs involved. For those purposes, Statements of Costs have been filed. Chen HQ has filed his statements of objections. Replies have also been filed. Below are my decisions.

Cites 3 cases

Case No.HCA 1304/2017[2021] HKCFI 2747
Court
High Court CFI
Date13 Sep 2021
Judge
Case Document
100%Judiciary

HCA 1304/2017 and
HCMP 962/2017
(Heard Together)

[2021] HKCFI 2747

HCMP 962/2017

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO 962 OF 2017

________________________

  IN THE MATTER OF Section 45(2)  and 45(5)  of the Arbitration Ordinance (Cap 609)
  and
  IN THE MATTER OF Section 21M of the High Court Ordinance (Cap 4)

________________________

BETWEEN

  CHEN HONGQING(陳宏慶) Plaintiff
  and  
  MI JINGTIAN(宓敬田) 1st Defendant
  ZHAO LIPING(趙利平) 2nd Defendant
  LI MAOHUAN(李茂桓) 3rd Defendant
  YU YUCHUAN(于玉川) 4th Defendant
  and  
  ASIA CEMENT CORPORATION Intervener

________________________

AND

HCA 1304/2017

ACTION NO 1304 OF 2017

________________________

BETWEEN

  CHEN HONGQING(陳宏慶) Plaintiff
  and  
  ASIA CEMENT CORPORATION Defendant
  MI JINGTIAN(宓敬田) Intended 2nd Defendant  
  ZHAO LIPING(趙利平) Intended 3rd Defendant  
  LI MAOHUAN(李茂桓) Intended 4th Defendant  
  YU YUCHUAN(于玉川) Intended 5th Defendant  

________________________

(Heard together)

Before:  Hon K Yeung J in Chambers

Date of Statement of Objections by the Plaintiff in HCMP 962/2017 and HCA 1304/2017: 5 May 2021

Dates of Statement of Costs and Reply  by the 1st to 4th Defendants in HCMP 962/2017 and  the Intended 2nd to 5th Defendants in HCA 1304/2017: 21 April and 14 May 2021

Dates of Statement of Costs and Reply by the Intervener in HCMP 962/2017 and the Defendant in HCA 1304/2017: 22 April and 18 May 2021

Date of Decision on Costs:  13 September 2021

________________________

DECISION
ON COSTS

________________________


1.I refer to my decision handed down on 16 March 2021 (the “Decision”)[1]. The 962 Ds and ACC have made applications for summary assessment of the costs involved. For those purposes, Statements of Costs have been filed. Chen HQ has filed his statements of objections. Replies have also been filed. Below are my decisions.

The 962 Ds

2.I deal first with the applications by the 962 Ds.

3.They were successful in the Dismissal Summons and the Joinder and Injunction Summons.

4.In respect of the Dismissal Summons, I made a costs order nisi in terms of §3 of the same, that the costs of the Originating Summons, including all costs reserved and of the Dismissal Summons, be paid by Chen HQ forthwith, such costs to be taxed if not agreed.

5.In respect of the Joinder and Injunction Summons, I made a costs order nisi that Chen HQ shall bear the costs of and occasioned by the same, to be taxed if not agreed, with certificate for 2 counsel for both the 962 Ds and ACC.

6.By letter of 7 April 2021 (with submissions of Mr Maurellet and Mr Tang attached), the 962 Ds seek summary assessment of the costs involved.

7.I on 8 April 2021 gave directions on the further conduct of the application.

8.Given the interlocutory and discreet nature of the applications, and that Chen HQ is not resident within the jurisdiction, I agree that the costs involved should be summarily assessed.  Chen HQ has filed no submission seeking to argue the contrary.

9.I have considered the Statement of Costs, objections and reply filed by the parties.  The parties’ respective positions are close.  The total costs originally claimed by the 962 Ds is HK$1,304,588.  The total costs Chen HQ proposes to be allowed is HK$1,152,388.  The adjusted total costs the 962 Ds finally claim is HK$1,220,678. 

10.Adopting a broad brush approach, I summarily assess the costs at HK$1,208,000, made up of Part 1: HK$58,000, Part 2: HK$800,000 and Part 3: HK$350,000.

11.I accordingly vary the costs order nisi to the extent that the 962 Ds’ costs be summarily assessed, which amount I assess as above.

ACC

12.At §53 of the Decision, in addition to the costs order nisi I have summarised at §5 above, I further ordered on a nisi basis that Chen HQ do bear the costs of the Security for Costs Application, to be taxed if not agreed, with certificate for 2 counsel.

13.By letter of 26 March 2021, ACC seeks summary assessment of their costs.

14.I on 8 April 2021 gave directions on the further conduct of the application.

15.Again, given the interlocutory and discreet nature of the applications, and that Chen HQ is not resident within the jurisdiction, I agree that the costs involved should be summarily assessed.  Chen HQ has filed no submission seeking to argue the contrary.

16.I have considered the Statement of Costs, objections and reply filed by the parties.

17.In relation to the Dismissal Summons (Part 1):

(a)  ACC claims total costs of HK$400,035;

(b)  Chen HQ proposes HK$272,165;

(c)  I agree that the claim for Professional Work (Section D)  in the total amount of HK$188,100 is on the high side, and involves duplications;

(d)  Adopting a broad brush approach, I summarily assess the total costs at HK$320,000.

18.In relation to the Joinder and Injunction Summons (Part 2):

(a)  ACC claims total costs of HK$997,807.50;

(b)  Chen HQ proposes HK$613,647.50;

(c)  The claim for Professional Work (Section D)  in the total amount of HK$529,150 is in my view excessive, and involves duplications;

(d)  Adopting a broad brush approach, I summarily assess the total costs at HK$730,000.

19.In relation to the Security for Costs Application (Part 3):

(a)  ACC claims total costs of HK$601,522.50;

(b)  Chen HQ proposes HK$164,620;

(c)  The claim for Professional Work (Section D)  in the total amount of HK$291,620 is in my view too high, and involves duplications;

(d)  I agree that the claim for Counsel’s Fee (Section E)  in the total sum of HK$244,762.50 is on the high side given the fact that only quantum is in dispute;

(e)  Adopting a broad brush approach, I summarily assess the total costs at HK$380,000.

(f)  I therefore summarily assess the total costs as above in the sum of HK$1,430,000 (HK$320,000 + HK$730,000  + HK$380,000).

20.I accordingly vary the costs order nisi to the extent that ACC’s costs be summarily assessed, which amount I assess as above.

Costs of these applications

21.I make no further order as to costs in respect of these applications.

  (Keith Yeung)
  Judge of the Court of First Instance
High Court

Statement of Objections by Gallant, for the Plaintiff in HCMP 962/2017 and HCA 1304/2017

Statement of Costs and Reply by Stephenson Harwood, for the 1st to 4th Defendants in HCMP 962/2017 and the Intended 2nd to 5th Defendants in HCA 1304/2017

Statement of Costs and Reply by Dechert, for the Intervener in HCMP 962/2017 and the Defendant in HCA 1304/2017