Read the full judgment text of HCCT 59/2023 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 1 November 2024 before Deputy High Court Judge Jonathan Wong.
Security for costs — Arbitration-related proceedings — Challenge to partial final arbitral award under section 81 Arbitration Ordinance (Cap 609) — Application under RHC Order 23 rule 1(1)(a) and Companies Ordinance s.905 — Foreign plaintiff ordinarily resident outside Hong Kong — Hong Kong company plaintiff with negligible assets — Whether foreign residence negates requirement for security for costs in court challenge proceedings — Whether impecuniosity required to order security — Distinction between arbitral tribunal's power under section 56 AO and court's power under Order 23 — First and Second Propositions advocating diminished weight of overseas residence and needing impecuniosity rejected — Consideration of difficulty of enforcement emphasized — Policy supporting arbitration agreements and awards does not extend to easing award challenges — Evidence of plaintiff’s asset structure and difficulty of enforcement and lack of local assets favor ordering security — Interim merits consideration not conclusively favorable to plaintiffs — Security for costs ordered for HK$1,504,600 against both P1 and P2 — Failure to pay security leads to dismissal of challenge application with costs to defendant on indemnity basis — Costs of the security application to be paid by plaintiffs with certificate for two counsel for summary assessment. Keywords: security for costs, arbitration, arbitration ordinance, challenge to arbitral award, RHC Order 23, Companies Ordinance s.905, foreign plaintiff, enforcement difficulties, partial final award, set aside application.
Legal issues: Proper approach to security for costs application in arbitration-related court proceedings · Whether security for costs should be ordered against P1 under RHC Order 23, rule 1(1)(a) · Whether security for costs should be ordered against P2 pursuant to section 905 of the Companies Ordinance
Outcome: Order granted for security for costs against P1 and P2
Cited by 1 case · Cites 3 cases