Read the full judgment text of HCCT 47/2009; HCCT 48/2009 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 23 November 2011 before Hon Saunders J.
Costs — Construction disputes — Chinese Settlement Agreement — Time-barred claims — Discontinuance and costs — Calderbank offer rejected — Indemnity costs — Interest on judgment — Pleading requirements for compound interest — Sanctioned payments — Interest disallowed for failure to beat sanctioned offer — Issue-based costs assessment. The plaintiff initiated two closely related construction claims against Many Harvest Construction Company Limited and Sun Fook Kong Construction Limited, involving identical or time-barred claims based on a Chinese Settlement Agreement and oral agreements dating back to mid-1990s. The plaintiff discontinued the claim against Many Harvest after legal aid was withdrawn, having rejected an early offer to discontinue with costs each party to bear, leading the court to order indemnity costs against the plaintiff following that offer date given the hopelessness of the claim. In the other action, the plaintiff was awarded a judgment sum significantly less than the amount claimed and less than sanctioned payments made. The plaintiff's claim for compound interest failed due to insufficient pleading and evidential foundation, limiting interest to simple interest at prime plus 1%. Furthermore, interest was disallowed because the plaintiff did not obtain a judgment more advantageous than the sanctioned payment/offer. Although issue-based costs apportionment is recognized, the court ordered general costs against the plaintiff due to substantial failure on all but two issues, including the most financially significant one. The plaintiff must pay costs to both defendants accordingly.
Legal issues: Costs order following discontinuance and offer refusal · Entitlement and rate of interest on judgment sum · Disallowance of interest due to failure to beat sanctioned payment · Approach to costs order on an issue-by-issue basis
Outcome: Mr Tai must pay Many Harvest’s costs on a party and party basis to 1 June 2009 and indemnity costs thereafter; Mr Tai is deprived of interest on SFK judgment and must pay SFK costs on a party and party basis.
Cited by 2 cases · Cites 2 cases