Read the full judgment text of HCCT 59/2007 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 21 June 2010 before Hon Saunders J.
Security for costs — Companies Ordinance s 357 — Construction subcontract dispute — Build Fame Services Ltd sued Yau Lee Construction Co Ltd for unpaid works and prolongation costs; counterclaim for breaches alleged by Yau Lee. Court considers application by counterclaimant for security for costs following indication that Build Fame may be unable to pay costs due to winding-up petition and lack of financial backing evidence from principal shareholder. Court finds application timely and proper. Security ordered at $1.5 million after discount on costs to reflect straightforward nature of case. Failure to pay results in stay of proceedings. Costs on summons to Yau Lee taxed party and party. Application not to stifle litigation but proper protection for counterclaimant. Outcome confirms procedural protections for defendants faced with potentially impecunious companies in construction disputes.
Legal issues: Security for costs under s 357 Companies Ordinance
Outcome: Security for costs in the sum of $1,500,000 fixed against Build Fame; failure to pay will result in stay of proceedings.