Read the full judgment text of HCA 009969/1998 on BabelCite. This High Court CFI judgment was delivered on 24 January 2000 before Cheung J.
Civil practice – costs – basis of taxation – payment into court – common fund basis versus indemnity basis – Whether costs should be taxed on an indemnity basis where defendant paid into court the exact sum plaintiff claimed was owing – plaintiff claimed HK$5,472,660 – defendant pleaded it owed only HK$3,433,382.84 – defendant further contended debt was assigned to another company in March 1997 – plaintiff accepted on 15 July 1999 that HK$3,433,383 was owing, leaving only the assignment as the live issue – defendant paid HK$4,008,051.35 into court on 3 January 2000, three weeks before trial – plaintiff accepted on 15 January 2000 – whether plaintiff's costs should be taxed on an indemnity basis – court held that late payment into court amounted to a complete surrender by the defendant – conduct of defendant in contesting proceedings from 15 July 1999 onwards forced plaintiff to incur unnecessary expenses – taxation on common fund basis ordered on costs plaintiff entitled to in the action, including costs order previously made in favour of plaintiff by Jackson J – court had no jurisdiction to vary other costs orders clearly based on party and party basis – Costs to be taxed on common fund basis.
Legal issues: Basis of taxation of costs after late payment into court
Outcome: Costs ordered to be taxed on the common fund basis, including the costs previously ordered in favour of the plaintiff by Jackson J