Read the full judgment text of HCCT49/2000 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 16 March 2001 before Hon Burrell J.
Security for Costs — Companies Ordinance s.357 — Plaintiff a shelf company with minimal paid-up capital — Defendant seeks security for costs based solely on plaintiff's company status — Court applies prima facie test requiring credible evidence of inability to pay costs. Plaintiff’s claim bona fide, no evidence of impecuniosity or sham claim. The fact of being a shelf company insufficient to trigger jurisdiction under s.357. Even if jurisdiction established, discretion not exercised to order security given disproportionate costs compared to claim, risk of stifling bona fide claim, and defendant’s legal aid advantage. Costs estimated over three times claim value; ordering security would be oppressive. Summons dismissed, costs awarded to plaintiff, and case transferred to District Court. Keywords: security for costs; Companies Ordinance s.357; shelf company; construction dispute; legal aid; bona fide claim; discretion to order security; costs proportion.
Legal issues: Security for costs jurisdiction under section 357 Companies Ordinance · Exercise of discretion to order security for costs under section 357
Outcome: The summons for security for costs by the defendant against the plaintiff was dismissed. Case transferred to District Court.
Cited by 3 cases