Read the full judgment text of HCPI 1113/2006 on BabelCite. This Court of First Instance judgment was delivered on 20 February 2012 before Bharwaney J.
Civil procedure – costs – variation of costs order nisi – sanctioned payment – plaintiff failed to beat joint sanctioned payment – whether plaintiff should pay defendants' costs from last date of acceptance of sanctioned payment to date of judgment on indemnity basis – Personal Injuries Action – Court of First Instance. The plaintiff obtained judgment for HK$1,381,694 against the 2nd defendant, having failed to beat a joint sanctioned payment of HK$1,750,000 made by the defendants available for acceptance up to 31 August 2011 – held: the costs order nisi was varied and the plaintiff was ordered to pay the 1st and 2nd defendants' costs from 1 September 2011 to the date of judgment, to be taxed on an indemnity basis if not agreed, including the costs of the application. Costs – enhanced interest on costs – whether enhanced interest may be awarded in favour of a publicly funded party (the 2nd defendant) – principles from Shih Pik Nog v. G2000 (Apparel) Ltd. [2011] 4 HKLRD 121 applied – held: enhanced interest should only be awarded for the period from the last date of acceptance of the sanctioned payment or offer to the date of judgment, and only if the receiving party has made payment of costs and disbursements, or on account of costs and disbursements, during that period. Court declines to follow Waller LJ in KR v. Bryn Alyn Community (Holdings) Ltd. [2003] PIQR P30, holding that enhanced interest should run from the date of actual payment of fees and disbursements, not from the date liability for payment accrued, so as to avoid an unjust windfall for the receiving party. The 1st defendant made payment of costs and disbursements only after the date of judgment, so no enhanced interest was awarded in its favour. The 2nd defendant, being publicly funded and represented by the Department of Justice, was awarded enhanced interest at 9% per annum on costs incurred (work done) after 31 August 2011, on mediator's fees from 28 September 2011 (date of payment), and on counsel's fees from 13 October 2011 (date of payment), in each case up to the date of judgment. The plaintiff's own costs were directed to be taxed pursuant to the Legal Aid Regulations.
Legal issues: Variation of costs order nisi where plaintiff failed to beat a joint sanctioned payment · Enhanced interest on costs in favour of publicly funded party
Outcome: Costs order nisi varied; plaintiff's costs order nisi retained in part; plaintiff ordered to pay defendants' costs from 1 September 2011 to date of judgment on indemnity basis; enhanced interest on costs awarded to the 2nd defendant only.
Cited by 68 cases