Read the full judgment text of CACV 138/2005, CACV 224/2006 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 5 February 2007 before Hon Rogers VP.
Civil procedure — security for costs — subcontractor unpaid for work — Defendant in financial distress with winding-up proceedings — Plaintiff's costs taxed at $2 million — Court considers Defendant’s financial straits justify ordering security for costs — Security fixed at $250,000 per case — Non-compliance leads to dismissal of appeals — Security to be provided by 19 March 2007 or appeals stayed — Defendant to pay costs if appeals dismissed due to default. The Plaintiff, KIN SHING ENGINEERING (H.K.) CO., LTD., alleged unpaid dues from Defendant VINSON ENGINEERING LTD. for subcontracted works, with costs taxed at $2 million. The Defendant faced financial difficulties, including winding-up proceedings, leading the court to find a high risk of non-recovery of costs if the Plaintiff succeeded on appeal. The court ordered security for costs of $250,000 each for two related appeals, with dismissal consequences for non-compliance. Costs to be taxed and payable by the Defendant if appeals dismissed in default. The orders protect the Plaintiff’s interests while allowing the Defendant reasonable time amid upcoming Chinese New Year.
Legal issues: Security for costs
Outcome: Security for costs ordered; appeals to be stayed unless Defendant provides security by 19 March 2007; if Defendant defaults, appeals dismissed.
Cites 2 cases