Read the full judgment text of FACV 3 of 2011 on BabelCite. This Court of Final Appeal judgment was delivered on 24 May 2012 before Ma CJ, Bokhary PJ, Chan PJ, Ribeiro PJ, Lord Scott of Foscote NPJ.
Civil procedure – costs – immediate payment of interlocutory costs – Civil Justice Reforms – whether to order 'forthwith' payment or costs 'in the cause' – misfeasance summons against directors in compulsory liquidation – liquidator of Wing Fai Construction Company Limited – failed application to dismiss for want of prosecution – two-year period of inordinate and inexcusable delay – application dismissed by Kwan J – appeal dismissed by Court of Appeal – further appeal dismissed by Court of Final Appeal – whether immediate payment of costs should be ordered – factors: severability and self-containment of interlocutory application, effect on cash flow of respective parties, amount at stake on taxation – whether costs orders 'in the cause' should be converted to immediate payment – whether such conversion amounts to variation of unappealed costs orders – Midland Business Management Ltd v Lo Man Kui (No 2) applied – Naf Naf SA v Dickens (London) Ltd and Kickers International SA v Paul Kettle Agencies Ltd considered – Order 62 r 5(1)(aa) and Order 1A rule 1 of the Rules of the High Court – underlying objectives of cost-effectiveness, expedition, proportionality and fairness – section 17 of the Court's statute – holding that immediate payment warranted where interlocutory application is severable, costs significant, and deferral would seriously prejudice cash flow of liquidation – application granted – appellants ordered to pay costs of failed application and appeals forthwith, to be taxed if not agreed.
Legal issues: Whether immediate payment of costs should be ordered in the wake of the Civil Justice Reforms · Whether the court has power to vary earlier costs orders not subject to appeal
Outcome: Application granted; appellants ordered to pay the liquidator's costs of the failed application and the related appeals forthwith, to be taxed if not agreed.
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