HORNOR RESOURCES (INTERNATIONAL) CO LTD v. SAVVY RESOURCES LTD

HCA335/2010

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 335 OF 2010

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DECISION ON ASSESSMENT OF COSTS

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General

1. This is the summary assessment of the plaintiff’s costs in relation to the ex parte application for variation of the Order by Poon J dated 12 March 2010. 

2. I granted the application for variation on 1 April 2010 and costs reserved.  By a consent summons dated 14 May 2010, parties agreed that the costs of the application be taxed by way of summary assessment.

3. The plaintiff’s statement of costs claims a total sum of $106,596.

4. The plaintiff’s costs are awarded on the party-and-party basis in accordance with Order 62, rule 28(2) of Rules of the High Court, Cap.4A.  There shall be allowed costs that are necessary or proper for the attainment of justice or for enforcing or defending the taxing party’s rights.

Fee earners’ hourly rates

5. Item A3 :  The defendant opposed the hourly rate of Lianjun Li (“LLI”) ($4500).  LLI was admitted in 2002 and is a partner of Messrs. Richards Butler.  LLI has 9 years pre-qualification experience and is a Chartered Arbitrator.  The hourly rate for a solicitor of similar seniority on taxation is $3500.  I have the benefit of reading the assessment by Chu J dated 1 June 2010.  I agree with her assessment in this aspect.  The hourly rate of LLI is allowed at $3500.

6. As for the other fee earners, the plaintiff accepts the proposal by the defendant.  The hourly rate of Fang Wang (“ZWANG”) is allowed at $2500.  The hourly rate of Qin Mu (“QMU”) is allowed at $1,300.

Communications including conferences, telephone calls and letters

7. Item C1 to C8 : The ex parte application to vary the Order dated 12 March 2010 was closely connected with the application for Committal due to the failure of the defendant to comply with the Disclosure Order.  I allow the time spent in relation to these items in full.

Professional work (D1 to D4)

D1

8. Item D1(1) prepare verified affirmations : The 6^th Affirmation of ZWANG and the statement in support of the application for Committal were filed on 1 April 2010.  Time for preparation of these documents is allowed.

9. Item D1(2) prepare Statement of Costs : The plaintiff agrees to waive this part.  The time spent in preparing this document is disallowed.

10. Item D1(3) draft order : The time spent in preparing the draft order is allowed.

11. There is no breakdown of the time spent in individual items under item D1.  I agree with the proposal by the plaintiff that the total preparation time by ZWANG for items D1(1) and D1(3) should be 1 hour and 12 minutes.

D2

12. Item D2 is time spent by ZWANG on perusal of the statement in support of the application for Committal.  I allow the time in full.

D3

13. Item 3 is time spent by ZWANG in preparing for the hearing. It is allowed in full.

D4

14. Item 4 is time spent in attending the hearing by ZWANG QMU.  Time spent in waiting for the hearing is generally not recoverable.  While the actual hearing was about 44 minutes (2:39 p.m. to 3:23 p.m.), I round up the time and allow 1 hour each for ZWANG and QMU for attending the hearing. 

Counsel fees

15. As stated above, I consider that the application for Committal was closely connected with the application to vary the Order dated 12 March 2010.  I also bear in mind the urgency of the matter.  I allow counsel’s fee for Mr Douglas Lam as claimed.

16. As for the fee for Ms Sabrina Ho, the plaintiff agrees to waive its claim.  This item is therefore disallowed.

Summary

17. The total costs of the plaintiff on the statement of costs are assessed and allowed at HK$76,146.  The following is the breakdown :

Items	Time allowed	Amount allowed (HK$)
B. Manual work
B1		$396
Sub-total :		$396
C. Communications
C1 to C8	LLI : $3,500 x 0.2 hr	$700
	ZWANG : 2500 x 2 hrs 36 minutes	$6,500
Sub-total :		$7,200
D. Professional work
D1	ZWANG : 2500 x 1 hr 12 minutes	$3,000
D2	ZWANG : 2500 x 30 minutes	$1,250
D3	ZWANG : 2500 x 0.2 hr	$500
D4	ZWANG : 2500 x 1 hr	$2,500
	QMU : $1,300 x 1 hr	$1,300
Sub-total :		$8,550
E.  Counsel fees
Mr Douglas Lam		$60,000
Sub-total		$60,000
Total :		$76,146