Read the full judgment text of HCCT 44/2020 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 27 February 2023 before Hon Mimmie Chan J in Chambers.
Costs — Non-party costs orders — Directors as real parties to litigation — Third party litigation funding — Joint liability for costs — Indemnity costs and interest following failure to beat sanctioned payment — Plaintiff company sued defendant for recovery under works contract, claims dismissed with costs. Court considered whether directors and funding company should be joined as plaintiffs for costs purposes. Applying authorities including Dymocks and Goknur, directors must be real parties with personal benefit and bad faith for such orders; McKee not liable due to bona fide belief in claims under legal advice. HS, having funded litigation and standing to gain under profit-sharing, held liable for costs jointly with plaintiff. Plaintiff failed to beat defendant's sanctioned payment; costs awarded on indemnity basis with interest at 4.5% per annum. Orders made for HS's joinder and costs liability alongside plaintiff.
Legal issues: Non-party costs orders against directors and funders · Costs on indemnity basis and interest on costs
Outcome: McKee and Mo are not liable for the Defendant’s costs; HS joined as plaintiff for costs purposes and ordered to pay the Defendant’s costs jointly and severally with the Plaintiff; costs ordered on party and party basis up to 22 December 2020, and on indemnity basis thereafter with interest on costs at 4.5% per annum until judgment date.
Cited by 3 cases · Cites 2 cases