Read the full judgment text of HCCT000016A/1994 on BabelCite. This HIGH COURT OF HONG KONG COURT OF FIRST INSTANCE judgment was delivered on 27 October 1997 before The Hon Mr Justice Findlay.
Costs — Construction and Arbitration — Granite cladding contract — Liability for defective works — Bank sued subcontractor Tsien Wui and architects/engineers Palmer and Turner — Bank’s claim dismissed against Tsien Wui, upheld against Palmer and Turner — Tsien Wui’s third party claim against Palmer and Turner dismissed. Issues on allocation of costs: Whether Palmer and Turner should bear costs for adjournment arising from expert witness unavailability — Court held both Tsien Wui and Palmer and Turner liable equally. Whether Palmer and Turner should pay for costs Tsien Wui recovered from Bank (Bullock order) — Court rejected, finding no reason to penalize Palmer and Turner given the parties’ relations and issues of fault. Regarding third party proceedings costs — Tsien Wui to pay Palmer and Turner but recover from Bank, reflecting inevitability of such claims given Bank’s litigation control. Various applications to vary costs orders were heard with costs apportioned according to success or failure of applications. Accordingly, orders nisi were varied and made absolute in these respects. The Bank must pay Tsien Wui’s costs of action. Tsien Wui and Palmer and Turner share adjournment costs. Tsien Wui bears third party costs payable to Palmer and Turner but may recover from Bank. Costs orders on variation applications finalized as detailed.
Legal issues: Liability for costs of adjournment · Whether Palmer and Turner should bear Bank's costs of Tsien Wui's successful defense (Bullock order) · Costs of third party proceedings · Costs of applications to vary orders nisi
Outcome: The order nisi that the Bank pay Tsien Wui’s costs is made absolute; Tsien Wui and Palmer and Turner share adjournment costs equally; Tsien Wui pays Palmer and Turner’s costs of third party proceedings but can recover from the Bank; various costs orders related to unsuccessful and successful applications to vary orders nisi are made as described.