The Incorporated Owners of Honour Building v. LOU CHUI SIM
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LDBM000373A/1999
FOR REFERENCE
LDBM 266 & 373/1999
(Consolidated)
HEADNOTE
Costs - Taxation - Lands Tribunal - High Court - Order 62 - Jurisdiction
The Respondents lost their cases in the Lands Tribunal and were ordered to pay costs to be taxed. The Applicant filed bill of costs in the Tribunal. The Deputy Registrar of the Tribunal issued notice of provisional taxation. When the Respondents objected and sought taxation by appointment, they were referred to the District Court. In due course, the District Court treated the objection as an application for review of final taxation and fixed appointment before a master of the District Court. The master dismissed the application on the ground that it was out of time for review.
Held: (1) By reference to court file records, the Respondent's objections were filed with the curt before final taxation certificate was issued; hence the objection, if treated as application for review, were not out of time; (2) in any event, since the court was empowered to extend time, the master should have considered all relevant factors and circumstances to see if discretion could be exercise to allow application out of time rather than to dismiss the application simply on the ground that it was late; (3) according to section 12 (2) of the Lands Tribunal Ordinance, Cap. 17 and Order 62 of the Rules of the High Court, Cap. 4, taxation of costs in Lands Tribunal cases should be dealt with by taxing master of the High Court in the High Court; (4) accordingly, the decision of the master was set aside and the matter of taxation transferred to the High Court.
LDBM 266 & 373/1999
IN THE DISTRICT COURT OF THE
HONG KONG SPECIAL ADMINISTRATIVE REGION
LDBM No. 266 & 373 OF 1999 (Consolidated)
__________
BETWEEN: | ||
| The | ||
| AND | ||
| LOU Chui-sim | 1st Respondent | |
| WONG Kwong-wai | 2nd Respondent |
__________
Coram: H.H. Judge LI in chambers
Date of Hearing: 28 June 2001
Date of Handing Down Judgment: 17 July 2001
______________
______________
1. On 11th September 2000, the Lands Tribunal gave judgment against the two Respondents with costs to the
「IN THE LANDS TRIBUNAL OF THE
HONG KONG SPECIAL ADMINISTRATIVE REGION
NOTICE TO THE PARTY COMMENCING
THE PROCEEDINGS FOR TAXATION
The Rules of the High Court
[Order 62 Rule 21 (4)]
Lands Tribunal Application No. LDBM 266/1999
NOTICE IS HEREBY GIVEN that the Registrar proposes to allow in respect of the costs of the Applicant herein -
Common Fund Party & Party
Profit costs .................... - $43,336.00 Disbursements ............... - $ 972.50 Taxing fee ..................... - $ 2,220.00 ____________ _________ - $46,528.50 ____________ _________
2. Those items which have been totally or partially taxed off or otherwise are listed overleaf.
3. Any party who is dissatisfied with the amount proposed to be allowed may apply in writing within 14 days after service of this Notice on him to the Registrar for an appointment* to have the Bill of Costs taxed.
4. The party on whose behalf the Bill has been lodged shall serve a copy of this Notice together with a copy of the Bill on every person entitled to be heard on taxation, UNLESS he intends to apply for an appointment to tax* in which case the Bill of Costs shall be served together with a Notice of such an appointment.
Dated the 8th day of March, 2001.
...................................................... (S. W Chan) Acting Deputy Registrar, Lands Tribunal
To: Messrs. Y.T. Szeto & Company Solicitors Units 701-2 Golden Centre 188 Des Voeux Road Central, H.K. (Ref.: AS/6447/99/BT)
*Remark:- Please approach the Taxation Clerk at District Court Registry for a date to be fixed for taxation call-over before a District Court Master. 」
2. According to what the 2nd Respondent (representing himself and his mother the 1st Respondent) told me, the Respondents were aggrieved by last year's
3. According to the 2nd Respondent, the Respondents received the notice from the Legal Aid Department of refusal of assistance only on 29th April this year. On 2nd May this year, pursuant to advice from staff of the Lands Tribunal, he made a written request to the
「IN THE DISTRICT COURT OF THE
HONG KONG SPECIAL ADMINISTRATIVE REGION
LDBM NO. 266 OF 1999
Between
The Incorporated Owners of Honour Building Applicant and LIU Chui Sim 1st Respondent WONG Kwong Wai 2nd Respondent
_____________________
APPOINTMENT TO REVIEW PROVISIONAL TAXATION
Upon the receipt of Notice of Objection to provisional taxation from the 1st Respondent, I hereby appoint Tuesday, the 29th day of May, 2001 at 10:30 0'clock in the forenoon in the Master's Chambers in Court No. 45 on the 12th floor of District Court, Wanchai Law Courts, Wanchai Tower, 12 Harbour Road, Hong Kong, to review the Applicant's costs herein. Please file to court and serve on the Applicant a list of objections 7 days before the hearing.
Dated the 11th day of May, 2001.
(S.K. Chan) for Registrar, District Court」
4. However, on 10th May, viz. one day after the District Court received the Respondents' written request for
「LDBM 266/1999
IN THE LANDS TRIBUNAL OF THE
HONG KONG SPECIAL ADMINISTRATIVE REGION
Building Management Application No. 266 of 1999
***************
Between
The Incorporated Owners of Honour Building Applicant and LIU Chui Sim 1st Respondent WONG Kwong Wai 2nd Respondent
***************
ALLOCATUR
I, HEREBY CERTIFY that the bill of costs of Messrs. Y.T. Szeto & Company, Solicitors against the 1st and 2nd Respondents has been taxed by the Registrar of the Lands Tribunal on the 8th day of March 2001 pursuant to the Order to Deputy Judge Tong dated 16th August 2000 and are allowed at as follows:-
PARTY & PARTY (HK$)
Profit costs 43,336.00 Disbursements 972.50 Taxing fee 2,220.00 _________ Allowed at 46,528.50 _________ Dated the 10th day of May, 2001.
(SUEN Yun-chai) Registrar Lands Tribunal」
5. On 29th May 2001, the parties appeared before
6. It should be pointed out that there are two actions herein and hence two sets of costs, orders and documents. Since the
The decision of the
7. The provisions of Order 62 Rule 33 (2) in the Rules of the District Court, Cap. 336 and in the Rules of the High Court Cap. 4 are identical. The full text thereof can be seen as quoted later in this
8. Even if, i.e. assuming that, the Respondents' application was out of time, Order 62 Rule 16 in the Rules of the District Court, Cap. 336 and in the Rules of the High Court, Cap. 4 provide in the same terms that:-
「16. Extension etc., of time (O. 62, r. 16)
(1) A
taxing master may-
(a) extend the period within which a party is required by or under this Order to begin
proceedings fortaxation or to do anything in or in connection withproceedings before that master;(b) extend the period provided by rule 33 (2) beyond the signing of the
taxing officer 's certificate by setting the certificate aside;(c) where no period is specified by or under this Order or by the Court for the doing of anything in or in connection with such
proceedings , specify the period within which the thing is to be done.(2) Where an order of the Court specifies a period within which anything is to be done by or before a
taxing master , then unless the Court otherwise directs, thetaxing master may from time to time extend the period so specified on such terms (if any) as he thinks just.(3) A
taxing master may extend any such period as is referred to in the foregoing provisions of this rule although the application for extension is not made until after the expiration of that period.」
In other words, the Court must consider whether to allow the out of time application by the Respondents. This involves the exercise of a
9. If I were to exercise the power of
10. I observe also that the notice quoted supra dated 8th March was issued by the Acting Deputy
(2) Subject to any rules made by the Chief Justice under
section 10 (3), Order 62 of the Rules of the High Court (Cap. 4 sub.leg.) shall apply to the award,taxation and recovery of costs in the Tribunal.
11. Going through the Rules of the High Court, Cap. 4, I find the following relevant provisions:-
"Order 1
(HK) "
Registrar " (司法常務官) means theRegistrar of the High Court, and includes a DeputyRegistrar or an AssistantRegistrar ;"
master " (聆案官) means amaster of the High Court and includes theRegistrar , and Deputy and AssistantRegistrars ;(2) (2) In these rules, unless the context otherwise requires, "the Court" (法院、法庭) means the Court of First Instance or any one or more of the judges thereof whether sitting in court or in chambers or the
Registrar or anymaster but the foregoing provision shall not be taken as affecting any provision of these rules and, in particular, Order 32, rule 11by virtue of which the authority andjurisdiction of theRegistrar is defined and regulated.
Order 62 (Rule 1)
"certificate"(證明書)includes allocatur;
"costs"(證費)include fees, charges, disbursements, expenses and remuneration;
"
taxed costs"(經評定的訟費)means coststaxed in accordance with this Order; (HK) "taxing master"(訟費評定官)means the Registrar as taxing master.
2. Application (r. 2)
(HK) (1) This Order shall apply to all
proceedings in the Court, except non-contentious orcommon form probate proceedings andproceedings in matters of prize.(2) Where
by virtue of any Ordinance the costs of or incidental to anyproceedings before an arbitrator orumpire or before a tribunal or other body constituted by or under any Ordinance, not beingproceedings in the High Court, aretaxable in the Court of First Instance, the following provisions of this Order, that is to say, rule 7 (4) and (5), rule 8 (6), rules 14 to 16, rule 17 (1), rule 18, rule 21 (except paragraph (3)), rules 22 to 26 and rules 33 to 35, shall haveeffect in relation toproceedings for taxation of those costs as they haveeffect in relation toproceedings fortaxation of the costs of or arising out ofproceedings in the High Court.
(3) This Order shall have
effect subject to the provisions of the District Court Ordinance (Cap. 336) and to any rules made thereunder and to any other enactment.
12. Powers of
taxing masters to tax costs (r. 12)
(1) A
taxing master shall have power to tax-(a) the costs of or arising out of any
cause or matter in the High Court;(b) the costs
directed by anaward made on a reference to arbitration under any enactment or pursuant to an arbitration agreement to be paid; and(c) any other costs the
taxation of which isdirected by an order of the Court.
13. Powers of certain judicial clerks to tax costs (r. 13)
(HK) (1) A Chief Judicial Clerk shall have power to transact all such business and exercise all such authority as under paragraph (4) of rule 21 of this Order may be transacted and exercised by the
Registrar and to issue acertificate for any coststaxed by him.(2) Paragraph (1) shall not be taken as empowering a Chief Judicial Clerk to tax any costs in respect of which an appointment to tax has been given.
(3) In exercising the powers conferred on him by this Order, a Chief Judicial Clerk shall comply with any
directions given to him by ataxing master .
21. Mode of beginning
proceedings
fortaxation (r.21)
(HK)(1) A party entitled to require any costs to be
taxed shall file in the Court hisbill of costs and shall obtain from thetaxing master an appointment to tax.(HK)(2) Not less than 7 days' notice of such appointment to
tax together with a copy of thebill of costs shall be served by such person on every person entitled to be heard ontaxation .(HK)(3) Except where an order for the
taxation of thebill of costs of a solicitor is made under section 67 of theLegal Practitioners Ordinance (Cap. 159) at the instance of the solicitor, it shall not be necessary for a copy of thebill of costs or of the notice of appointment to tax to be sent to any party who has not acknowledged service in theproceedings which gave rise to thetaxation .(HK)(4) In
proceedings for thetaxation of costs of, or arising out of, acause or matter in which the amount of thebill of costs does not exceed the sum of $100,000, thetaxing master may be notice inform the party commencing theproceedings fortaxation the amount which thetaxing master proposes to allow in respect of the costs to betaxed and further thetaxing master shall not give any notice under paragraph (2) unless, within 14 days after serving notice of the amount he proposes to allow, any person entitled to be heard on taxation applies to the taxing master for anappointment to tax .(HK)(5) A party must, when he files his
bill of costs , deposit with the Court an amount equivalent to the taxing fee which would be payable if the bill were to be allowed in full. When thetaxing master signs a certificate, the balance of the sum so deposited, if any, after deducting theprescribed taxing fee, shall be repaid to the party who deposited such amount.(HK)(6) If a
bill of costs is withdrawn less than 7 days before the appointment fortaxation , a fee shall be payable by the party who withdraws the bill.(HK)(7) The fee payable under paragraph (6) shall be deducted by the Court from the amount deposited under paragraph (5).
33. Application to
taxing master for review (r.33)
(1) Any party to any
taxation proceedings who is dissatisfied with the allowance or disallowance in whole or in part of any item by ataxing master , or with the amount allowed by ataxing master in respect of any item, may apply to thetaxing master to review his decision in respect of that item.(2) An application under this rule for review of a
taxing master 's decision may be made at any time within 14 days after that decision or such shorter period as may be fixed by thetaxing master .Provided that no application under this rule for review of a decision in respect of any item may be made after the signing of the
taxing master 's certificate dealing finally with that item.
(3) Every
applicant for review under this rule must at the time of making his application deliver to thetaxing master objections in writing specifying by a list the items or parts of items the allowance or disallowance of which or the amount allowed in respect of which, is objected to and stating concisely the nature and grounds of the objection in each case, and must deliver a copy of the objections to each other party (if any) who attended on thetaxation of those items or to whom thetaxing master directs that a copy of the objections shall be delivered.(4) Any party to whom a copy of the objections is delivered under this rule may, within 14 days after
delivery of the copy to him or such shorter period as may be fixed by thetaxing master , deliver to thetaxing master answers in writing to the objections stating concisely the grounds on which he will oppose the objections, and shall at the same time deliver a copy of the answers to the party applying for review and to each other party (if any) to whom a copy of the objections has been delivered or to whom thetaxing master directs that a copy of the answers shall be delivered.(5) An application under this rule for review of the
taxing master 's decision in respect of any item shall notprejudice the power of thetaxing master under rule 17 to use an interimcertificate in respect of items his decision as to which is not objected to.
34. Review by
taxing master (r.34)
(HK)(1) A review under rule 33 shall be carried out by the
taxing master to whom thetaxation was originally assigned.
12. In view of Order 62 Rule 2(3) of the Rules of the High Court, Cap. 4, I have looked into the District Court Ordinance and the Rules of the District Court, Cap. 336. As far as I can see, the District Court Ordinance, Cap. 336 does not contain any provision that affects Order 62 of the Rules of the High Court, Cap. 4. As to the Rules of the District Court, Cap. 336, its contents and provisions are modelled on the Rules of the High Court, Cap. 4. Except for differences in the necessary reference, such as references to the High Court changed to references to the District Court, the Rules of the District Court, Cap. 336 is basically identical to the Rules of the High Court, Cap. 4. However, it has to be emphasized, Order 62 Rule 2 of the Rules of the District Court, Cap. 336 does not contain provisions similar to Order 62 Rule 2(2) of the Rules of the High Court, Cap. 4. In fact, Order 62 Rule 2(1) of the Rules of the District Court, Cap. 336 provides that "This Order shall apply to all
13. According to Order 62 Rule 21 of the Rules of the High Court Cap. 4, after the Lands Tribunal has ordered
14. According to Order 62 Rule 1 of the Rules of the High Court, Cap. 4
15. In summary,
16. In matters of
17. As to why officers of the Lands Tribunal and the District Court did handle the matter of costs in the two instant cases, I asked my clerk to make enquiries with the Registries. Staff of the Registries have furnished me with two documents:-
(1) E-mail dated 1 August 2000 from
ActingRegistrar , High Court to
ActingRegistrar , District Court
「Christopher C Chan
2000/08/01 06:30 PM
To: Queeny KY AuYeung
cc: Dep Regr Lands & Regr Dist Ct
(E-mail addresses omitted)
Subject: Re: Taxation for Cases in the Lands Tribunal
Dear Queeny,
Thank you for the e-mail on the above subject. I agree with you on the points raised. Taxation of the Lands Tribunal Bills after 1 September should be done by District Court Masters as they are well qualified to do so. There is no reason for the High Court Masters to do the taxation as Section 2 of the Ordinance provides that the Registrar of the District Court shall be the Registrar of the Lands Tribunal. Taxation on whatever scale is only the basis of calculation and should not affect the jurisdiction at all.I worked under the impression that there would not be any qualified person to act as the Registrar for the Lands Tribunal. It is now clarified; I do apologize for any confusion that has been caused.
Christopher」
(2) Extract of Memorandum dated 14 August 2000
from Acting Chief District Judge to all judges of
the District Court, Family Court and Lands Tribunal
「 MEMO
From Chief District Judge To Judges and Deputy Judges,
District Court, Family Court
And the Lands TribunalRef. in Tel No. 2582-4127 Your Ref. in Fax No. 2511-1940 Dated Date 14 August 2000 Fax No.
The District Court (Amendment) Ordinance 2000
The District Court (Amendment) Ordinance 2000, the new Rules of the District Court, and Practice Direction 27 in respect of civil proceedings in the District Court shall come into effect on 1 September 2000. In a nutshell, the jurisdiction in respect of monetary claims will be increased to $600,000 (S.32), the jurisdiction for recovery of land will be increased to a rateable value of $240,000 (S.35), and the equity jurisdiction will be increased to $600,000 in respect of monetary claims, and $3,000,000 where land is involved, provided that the non-land portion, if any, does not exceed $600,000 (S.37).
2. A Masters' Office will also be in operation on the 12/F with effect from 1 September 2000. Ms Queeny Au-Yeung will be the Acting Registrar, District Court, assisted by Mr. Anthony Chow and Mr. C.K. Chan, Acting Registrars, District Court. The Registrar and Masters shall have all the jurisdiction of a District Judge in chambers, but it is envisaged that they will only deal with call-overs and cases of no serious disputes, while cases involving substantial arguments will be adjourned before judges in chambers. The Masters will also conduct call-overs for examination of debtors and taxation of bills of costs of the District Court, Family Court and the Lands Tribunal. Distraints and interpleaders will continue to be dealt with by judges.
3. ........
(Sd.)
(B.W. Fung)
Acting Chief District Judge
c.c. Deputy Judge Hawkes, CFI (CDJ) Mr. Chu Wai-yim, Registrar, District Court Ms. Queeny Au-Yeung, Acting Registrar, District Court (Designate) Listing Officer, District Corut Assistant Listing Officer, District Court Registry 」
18. Since neither the then Acting (now
Order
19. For all the reasons given above, I hold that all
(1) the decision of the
master made on 29th May 2001 be and is hereby set aside;(2) matters relating to
taxation of costs in the two instant cases be transferred to the Court of First Instance;(3) no order as to costs incurred for whatever steps taken so far in relation to the matter of costs.
| ( Z.E. Li ) | |
| District Judge | |
| Presiding officer, Lands Tribunal |
Representation:
Ms. Mak Suk Kuen Sofia of M/S Y.T. Szeto & Co. for the
1st Respondent represented by 2nd Respondent appearing in person
2nd Respondent appearing in person