Read the full judgment text of HCCT75/1998 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 28 February 2000 before Hon Burrell J in Chambers.
Construction law — Security for costs — Foreign plaintiff — Financial backing relationship — Order 23 rule 1 and s.357 Companies Ordinance — Discretionary balancing exercise. CITY TOP ENGINEERING LIMITED (CT), a financially vulnerable but viable local plaintiff, and KINGPOINT PROFITS LIMITED (KP), a financially sound foreign plaintiff and financial backer of CT, bring related actions against LEE SHING YUE CONSTRUCTION COMPANY LIMITED (LSY). LSY applies for security for costs against both plaintiffs due to concerns about costs recovery. The court declines to order security against CT due to improved financial position, bona fide claims, and potential injustice of shutting CT out of action. However, the court orders KP to pay security for costs amounting to HK$600,000, balancing KP's foreign status and backing of CT. Costs were awarded in favor of CT against defendants and against KP for costs arising from summons. The security quantum considered expected taxation reductions, KP's role as financial backer, and defendants’ interests as foreign plaintiff. Application against CT dismissed, application against KP partially granted.
Legal issues: Security for costs against foreign plaintiff · Security for costs against local plaintiff
Outcome: Security for costs ordered against KP in sum of HK$600,000; security for costs application against CT dismissed; CT awarded costs against defendants; KP ordered to pay costs of summons against KP.
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