WILLWIN DEVELOPMENT (ASIA) CO LTD v. WEI XING AND OTHERS

HCA 797/2012

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO 797 OF 2012

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D E C I S I O N

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1. I had made it clear in my Decision of 30 September 2013 that the matters which I had taken into account when making the order included the fact that “no steps whatsoever had been taken by Wen as majority shareholder to procure the formal ratification” of these proceedings. That was the cause of the defendants’ application to strike out the action for lack of authority.

2. It is also clear in these proceedings that all material times, Wen was the 70% majority shareholder, director and decision maker of the plaintiff company.  Those constitute grounds for seeking and making a costs order against him in respect of the striking out Application, for which he was joined as a party for the purpose of costs.

3. I do not agree that there are reasonably arguable grounds for the appeal against my decision on costs.  I had exercised my discretion, and had made clear in my Decision the matters which I had taken into consideration (namely, the underlying objectives of the Civil Justice Reform and the conduct of the parties), when I ordered that no costs should be awarded to any party “in relation to the striking out Application”.  The defendants’ application for costs against Wen related to no other than the striking out Application, and the order for the costs proceedings is already included in the costs order which I made on 30 September 2013.

4. Nor do I see any other reason why the appeal should be heard in the interests of justice.

5. The application for leave to appeal is dismissed, with costs to the defendants, payable forthwith.