Read the full judgment text of HCMP 001454/2003 on BabelCite. This High Court CFI judgment was delivered on 26 November 2003 before Woo JA and Cheung JA.
Civil procedure – leave to appeal – costs order – no order as to costs – company limited by guarantee – Hong Kong Racing Pigeon Association – validity of extraordinary general meeting – members admitted without observing articles of association – plaintiffs succeeded on central issue but claim for breach of fiduciary duty dismissed – whether judge erred in principle in making no order as to costs – section 52A High Court Ordinance – Order 62 Rules 2(4), 3(2) and 7 – Re Elgindata Limited (No. 2) principles – costs are in discretion of court and normally follow the event, but general rule may be displaced where successful party causes significant increase in length or cost of proceedings or raises issues improperly or unreasonably – Smith v. Cosworth Casting Processes Limited – test for granting leave to appeal is whether applicant has realistic prospect of success or arguable case – Association had been run in a casual manner for over 20 years with members admitted without following the articles – 2nd plaintiff took inconsistent position by challenging validity of 65 members who requisitioned the meeting while maintaining validity of 323 other members admitted on same basis – no halfway house available on question of membership validity – plaintiffs brought litigation upon themselves by allowing the situation to continue for a substantial period – Court of Appeal would have reached same conclusion as trial judge – leave to appeal refused.
Legal issues: Whether the judge erred in principle in making no order as to costs · Whether leave to appeal against the costs order should be granted
Outcome: Application for leave to appeal against the costs order refused; plaintiffs have no realistic prospect of success on appeal.