Lau Tsz Hung Ringo v. First Refrigeration Engineering Ltd

HCMP 1166/2013

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO. 1166 OF 2013

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DECISION ON ASSESSMENT OF COSTS

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1.The costs to be assessed are the defendant’s costs of the hearing before me on 29 June 2013 (“Hearing”). At the Hearing, I directed that such costs be summarily assessed and paid forthwith. Since costs are to be assessed on usual party and party basis, only costs that are necessary or proper for the attainment of justice or for enforcing or defending the taxing party’s rights will be allowed (see Order 62 rule 28(2) of the Rules of the High Court).

General Information

2.There is no dispute that the hourly rate of the handling solicitor KWH is HK$4,000.00.

Item B1

3.There is also no dispute as to photocopy charges at HK$88.00.

Item C1

4.The defendant claims 35 minutes of KWH’s time at HK$2,333.00 for attendance on the defendant and the insurer including taking instructions for the Hearing and reporting my decision handed down on 4 July 2013 (“Decision”).  However, the plaintiff says that since the contested issue at the Hearing relates to costs, any decision to resist the plaintiff’s application for costs should come from the insurer.

5.I bear in mind that the relevant costs are limited to the issue canvassed at the Hearing, which the plaintiff rightly points out concerns costs. In such circumstances, the primary instructions should come from the insurer with a simple copy to the defendant. Reporting the Decision is also a simple affair since the defendant is the successful party. In all the circumstances, I allow 25 minutes of KWH’s time for this item at HK$1,666.67.

Item D1

6.The defendant claims HK$13,333.33 being 20 minutes of KWH’s time for reading correspondence from the plaintiff’s solicitors, 1 hour for reading the plaintiff’s skeleton submissions, 1 hour for reading the plaintiff’s list of authorities, and 1 hour 30 minutes for reading the Decision.

7.In my view, the claim under this item is excessive. The plaintiff’s skeleton submissions are practically 4 pages only, and the list of authorities merely comprises an extract from the relevant statutory provisions, an extract from Hong Kong Civil Procedure 2013 and a case cited therein.  In my view, it is reasonable or proper to allow 45 minutes to peruse such documents. As for the letter from the plaintiff’s solicitors, which is extremely succinct, I allow 5 minutes. For perusal of my Decision, bearing in mind that the defendant is the successful party and the handling solicitor is well familiar with the background of the case, I allow 30 minutes as being reasonable or proper for such purpose. I therefore allow 80 minutes of KWH’s time under this item at HK$5,333.33.

Item D2

8.The defendant claims 3 hours 18 minutes of KWH’s time at HK$13,200.00 for drafting and preparing documents.  The issue before the court at the Hearing falls within a small compass. A large part of the skeleton submissions are extracts from legislative provisions and the Hong Kong Civil Procedure 2013. I am not persuaded that preparation of the skeleton submissions and list of authorities would require 3 hours 15 minutes.The time claimed is excessive, and I reduce KWH’s time to 1 hour 30 minutes at HK$6,000.00.

Item D3

9.The defendant claims 1 hour and 30 minutes of KWH’s time at HK$6,000.00 for legal research.  Whilst I accept that legal research would be required, I agree with the plaintiff’s solicitors there is overlap in the authorities cited by both parties and time has been allowed for the defendant’s solicitors to peruse the plaintiff’s list of authorities. I also note that notwithstanding the legal research undertaken, the defendant’s solicitors did not cite the authorities referred to in paragraphs 30-40 of my Decision. I am not persuaded that the legal research done by the defendant’s solicitors requires 1 hour 45 minutes. I allow 45 minutes at HK$3,000.00 for this item.

10.The total costs of the defendant on their statement of costs are assessed at HK$16,088.00 (being HK$88.00 (B1) + HK$1,666.67 (C1) + HK$5,333.33 (D1) + HK$6,000.00 (D2) + HK$3,000.00 (D3)). The plaintiff shall forthwith pay assessed costs in the sum of HK$16,088.00 to the defendant.

Messrs YK Tam & Co, for the plaintiff

Messrs Winnie Leung & Co, for the defendant