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HCMP 1859/2011
IN THE HIGH COURT OF THE
HONG KONG SPECIAL ADMINISTRATIVE REGION
COURT OF FIRST INSTANCE
MISCELLANEOUS PROCEEDINGS NO 1859 OF 2011
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IN THE MATTER of s.48 of the Arbitration Ordinance, Cap 609
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and
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IN THE MATTER of Order 29 of the Rules of the High Court, Cap.4 and inherent jurisdiction of the Court
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| BETWEEN
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EASTMAN CHEMICAL LIMITED |
Applicant |
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and
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HEYRO CHEMICAL COMPANY LIMITED |
Respondent |
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| Before : Deputy High Court Judge Lisa Wong, SC in Chambers |
| Date of Order: 6 March 2012 |
| Date of Respondent’s statement of costs: 13 March 2012 |
| Date of Applicant’s statement of objection: 20 March 2012 |
| Date of Summary Assessment of Costs: 23 May 2012 |
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SUMMARY ASSESSMENT OF COSTS
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1. By a Judgment handed down on 23 February 2012, I dismissed the application by Eastman Chemical Limited (“Eastman”) against Heyro Chemical Company Limited (“Heyro”) for a stay of these miscellaneous proceedings and the arbitration proceedings commenced by Eastman against Heyro by a Notice of Arbitration dated 27 September 2011 (“the Arbitration”) pending the determination of Eastman’s petition for the winding-up of Heyro in HCCW346/2011 (“the Winding-up Petition”).
2. I also made an order nisi that that Eastman should pay Heyro’s costs of the application, to be taxed if not agreed, with Certificate for Counsel.
3. Such costs order nisi was varied by consent on 6 March 2012 to the extent that there should be gross sum assessment of Heyro’s costs.
4. Heyro claims $150,122. Eastman is prepared to accept $108,172. The following is a breakdown of their differences:
| Work |
Claimed by Heyro |
Agreed by Eastman[1] |
| Manual work (photocopying charges & attendances by legal executive) |
$1,222 |
$1,222 |
| Communications |
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| Attendance on client by partner & senior associate |
$14,800 |
$10,200 |
| Attendance on other side by senior associate & legal executive |
$ 6,000 |
$ 2,300 |
| Attendance on counsel by senior associate & legal executive |
$ 7,700 |
$ 7,700 |
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$28,500 |
$20,200 |
| Professional work |
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| Preparation of affirmation in opposition by senior associate & legal executive |
$11,800 |
$2,050 |
| Perusal of summons & supporting affidavit by senior associate |
$ 7,600 |
$ 900 |
| Preparation for and attendance at call-over hearing by senior associate |
$7,200 |
$1,800 |
| Legal research by senior associate |
$10,800 |
Nil |
| Preparation for and attendance at 2.2.2012 hearing by legal executive |
$3,000 |
$2,000 |
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$40,400 |
$6,750 |
| Counsel’s fees for conferences, drafting affirmation and appearance at hearing on 2 February 2012 |
$80,000 |
$80,000 |
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$150,122 |
$108,172 |
5. I agree with the solicitors for Eastman that the profit costs claimed for “communications” and “professional work” by the solicitors for Heyro are excessive, particularly having regard to their familiarity with the bulk of the background to Eastman’s stay application from acting for Heyro in respect of the preceding application by Eastman for a Mareva injunction in these miscellaneous proceedings, the Arbitration and the Petition.
6. In my view, the appropriate amounts for “communications” and “professional work” should be $22,000 and $18,000 respectively.
7. I order Eastman to pay Heyro costs in the amount of $121,222 ($1,222 + $22,000 + $18,000 + $80,000) within 14 days from the date hereof.
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(Lisa K Y Wong, SC)
Deputy High Court Judge |
Messrs Kennedys for the Applicant
Messrs Squire Sanders for the Respondent
[1] As being reasonable and recoverable on a ‘party and party’ taxation.
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