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2006

BANK OF CHINA (HONG KONG) LTD v. WENLOY LTD AND ANOTHER

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Files (3)

59067-EN-2007-11-09

BANK OF CHINA (HONG KONG) LTD v. WENLOY LTD AND ANOTHER

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CACV 427/2006

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

CIVIL APPEAL No.427 of 2006

(ON APPEAL FROM HCA No.997 of 2004)

______________________

BETWEEN:

 BANK OF CHINA (HONG KONG) LIMITEDPlaintiff
 and 
 WENLOY LIMITED1st Defendant
 KWAN HIN KEE2nd Defendant

______________________

 

Before : Hon. Yuen JA and Chu J in Court

Date of hearing and judgment : 6 November 2007

Date of Reasons for Judgment : 9 November 2007

 

-----------------------------------

REASONS FOR JUDGMENT

------------------------------------

 

Hon. Yuen JA:

1.  On 28 May 2007 Rogers V-P ordered the 2nd Defendant to give security for costs in the sum of $155,000 for his appeal against Deputy Judge Muttrie’s judgment of 21 November 2006.

2.  The 2nd Defendant filed an appeal against the Vice-President’s order.  That was an interlocutory appeal against an exercise of discretion.  

3.  On 27 June 2007, this Court dismissed the appeal.  The reasons for that decision have been set out in our written Reasons handed down on 29 June 2007. 

4.  The 2nd Defendant sought leave to appeal to the Court of Final Appeal.

5.  Section 22(1) of the Hong Kong Court of Final Appeal Ordinance Cap. 484 sets out the conditions for granting leave to appeal to the Court of Final Appeal. 

6.  The 2nd Defendant’s appeal to this Court from the Vice-President’s order being an interlocutory appeal, s.22(1)(a) does not apply. 

7.  Accordingly, the 2nd Defendant must show that the question involved in his intended appeal is one which, “by reason of its great general or public importance, or otherwise”, ought to be submitted to the Court of Final Appeal for decision (see s.22(1)(b) HKCFAO).

8.  At the hearing before us the 2nd Defendant argued that the question was whether he should be obliged to prove that he was able to pay the costs of his intended appeal when the burden was on the Plaintiff to show his impecuniosity. 

9.  However that question did not arise.  The Plaintiff had provided prima facie evidence before the  Vice-President that the 2nd Defendant was impecunious as he had not satisfied a statutory demand.  The 2nd Defendant argued that he did not satisfy the statutory demand because he was applying to set it aside and not because he was unable to pay.  However the 2nd Defendant did not provide any evidence of his financial resources to support that allegation.  That was no doubt one of the matters considered by the Vice-President in the exercise of his discretion before he ordered the 2nd Defendant to pay security for costs.

10.  The matters set out in the Notice of Motion referred to factors concerning the exercise of discretion in this particular case.  They did not disclose any question of great general or public importance, nor did they disclose anything to warrant the grant of leave under the residual (“or otherwise”) ground.  

11.  For the above reasons I dismissed this application with costs to the Respondent to be taxed if not agreed.

 

Hon. Chu J:

12.  I agree.

 

 

(MARIA YUEN)
Justice of Appeal
(CARLYE CHU)
Judge of the Court of First Instance

 

Mr MC Law instructed by Tsang Chan & Wong  for the Plaintiff (Respondent).

The 22nd Defendant (Appellant) in person, present.

 

57634-EN-2007-06-29

BANK OF CHINA (HONG KONG) LTD v. WENLOY LTD AND ANOTHER

HTML content

CACV 427/2006

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

CIVIL APPEAL No.427 of 2006

(ON APPEAL FROM HCA No.997 of 2004)

______________________

BETWEEN:

BANK OF CHINA (HONG KONG) LIMITEDPlaintiff
and
WENLOY LIMITED1st Defendant
KWAN HIN KEE2nd Defendant

Before: Hon. Yuen JA and Chu J in Court



Date of hearing and decision: 27 June 2007

Date of Reasons for Decision: 29 June 2007

-----------------------------------

REASONS FOR DECISION

------------------------------------

Hon.  Yuen JA:

1.  This is an appeal by the 2nd Defendant from Rogers V-P’s order made on 28 May 2007 that he give security for costs in the sum of $155,000 for his appeal against Deputy Judge Muttrie’s judgment given on 21 November 2006.  On 24 April 2006 Master Hui had given summary judgment against the 2nd Defendant and the deputy judge upheld that order. 

2.  At the conclusion of the hearing before us, we dismissed the appeal with costs.  My reasons appear below. 

Principles

3.  The Vice-President’s order was given in the exercise of his discretion.  It is well-established that an appellate court should not interfere with the exercise of a judge’s discretion unless it is satisfied that the judge has erred in law or in principle, or if he has taken into account some matter which he should not have taken into account, or has left out of account some matter which he should have taken into account, or if the decision was so plainly wrong that it must have been reached by a faulty assessment of the weights of the different factors which have to be taken into account. 

Rogers V-P’s decision

4.  It is clear from the Vice-President’s decision (para. 2) that he was well aware of the principles of law governing an application for security for costs and it has not been suggested by the 2nd Defendant that the Vice-President has misapprehended any material facts.   

5.  The Vice-President found that the 2nd Defendant’s impecuniosity had been established because a statutory demand for a judgment debt was outstanding. 

6.  The Vice-President was also of the view that the 2nd Defendant had failed to demonstrate that he had sufficient merits in the appeal to make it appropriate not to order security for costs.

7.  As a matter of completeness I should add that since the Vice-President’s order, the 2nd Defendant has filed an affirmation on 5 June 2007 but no new facts have been disclosed.

Discussion

8.  Is there anything before us to show that the Vice-President was wrong in coming to those views?

9.  As far as impecuniosity is concerned, there is still extant a statutory demand for the judgment debt in the sum of over $2.3 million.  That is a fact that the 2nd Defendant cannot ignore even though he has applied to set it aside.  It is noted that in his application to set aside the statutory demand, the 2nd Defendant has not suggested that he can pay off the judgment debt - his only ground is that he intends to appeal against the judgment.  The unsatisfied statutory demand, and the lack of any evidence from the 2nd Defendant to show that he has assets to satisfy it, justifies the Vice-President’s view that the 2nd Defendant is impecunious.

10.  As far as the merits of the appeal are concerned, I have read Deputy Judge Muttrie’s judgment.  Before us the 2nd Defendant relied heavily on the majority judgment in CACV 120/2005 but that was decided on the individual facts of that case.  In the present case, the 2nd Defendant was a practising solicitor at the material times so it is not surprising that the deputy judge did not accept his allegations that he did not understand the terms of the guarantee, etc.  As far as the alleged settlement agreement was concerned, the deputy judge took into account the fact that it was not reduced to writing even though the 2nd Defendant was a solicitor.  Further the alleged settlement agreement was inconsistent with contemporaneous documents and the deputy judge also found inconsistencies between the pleadings and the 2nd Defendant’s affirmation.  Even without taking other issues such as consideration into account, I do not think the Vice-President’s assessment of the lack of sufficient merits in the appeal from the deputy judge’s  judgment can be gainsaid.  

Order

11.  The 2nd Defendant having failed to show any grounds for disturbing the Vice-President’s exercise of his discretion, this appeal was dismissed with costs (the parties having agreed that the costs should follow the event).

 

Hon. Chu J:

12.  I agree.

 

 

(MARIA YUEN)
Justice of Appeal
(CARLYE CHU)
Judge of the Court of First Instance

Mr MC Law instructed by Tsang Chan & Wong  for the Plaintiff (Respondent).

The 2nd Defendant (Appellant) in person, present.

57239-EN-2007-05-28

BANK OF CHINA (HONG KONG) LTD v. WENLOY LTD AND ANOTHER

HTML content

cacv 427/2006

 

in the high court of the

hong kong special administrative region

court of APPEAL

civil appeal no. 427 of 2006

(on appeal from HCA 997/2004)

______________________

BETWEEN

 BANK OF CHINA (HONG KONG) LIMITEDPlaintiff
 and 
 WENLOY LIMITED1st Defendant
 KWAN HIN KEE2nd Defendant

______________________

 

Before: Hon Rogers VP in Chambers

Date of Hearing: 28 May 2007

Date of Decision: 28 May 2007

______________________

D E C I S I O N

______________________

 

1.  This is an application for security for costs in respect of an appeal by the 2nd Defendant from a judgment of some $1,942,270.52 with interest.

2.  The ground upon which the application is made is that, first of all, the 2nd Defendant is impecunious and the chances of the Plaintiff recovering the costs, should it be successful on the appeal, is limited and, secondly, that the grounds of appeal do not show merit.

3.  The application was adjourned on the first occasion because although the Plaintiff said in affirmations that the 2nd Defendant was impecunious, the background material was not presented to the court.  It is clear that a statutory demand for the amount outstanding on the judgment was served on 16 February of this year.  The 2nd Defendant says that application is being made to set that aside but it has not been set aside and I see at the moment little basis for doing so.  The other material put before the court does establish that the 2nd Defendant is likely to have little or no assets and at any rate the Plaintiff may have difficulty in recovering any costs should it be successful.

4.  I then turn to the question of the merits because one does not order security for costs against an individual even if he is impecunious if he would appear to have merits to his appeal.  I do not wish to say any more about it at this stage but I regret to say I do not see sufficient merits in this appeal to make it appropriate not to order security for costs on this occasion.  In view of the fact that there will be an appeal coming up should the security be provided, it is better that I say little more about it.

5.  The order that I propose to make is that the 2nd Defendant do on or before 25 June 2007 give security to answer costs in case any shall be awarded to be paid by the 2nd Defendant to the Plaintiff by making lodgement in court of the sum of $155,000 by cash or banker’s draft or by provision of a bank guarantee of the like amount, which guarantee shall have been approved by the Registrar.  Until such lodgement be made and notice thereof given to the Registrar and to the solicitors for the Plaintiff, such notice to be given on the same day as the lodgement is made, all proceedings in the said appeal be stayed.

6.  In default of the 2nd Defendant making such lodgement as aforesaid within the time specified above or within such further time as the court may for special reasons allow, the said appeal do, upon the solicitors for the Plaintiff certifying such default to the Registrar, stand dismissed out of this court without further order. 

7.  In the event that the appeal is dismissed in the circumstances provided for above, the 2nd Defendant do pay to the Plaintiff its costs occasioned by the said appeal, such costs to be taxed and the costs of this application be costs in the appeal.

 

 

 (Anthony Rogers)
Vice-President

 

Mr M C Law, instructed by Messrs Tsang, Chan & Wong, for the Plaintiff/Respondent

The 2nd Defendant/Appellant, in person