Li Choi Na v. Well Done Garment Factory Ltd.

DCEC1023/2001

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

EMPLOYEES COMPENSATION CASE NO. 1023 OF 2001

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R U L I N G

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1. The question that arises is whether the respondent should bear the applicants' costs in respect of the preparation and hearing of the apportionment of compensation between the various dependants of the deceased.

2. For the respondent it is submitted that this should not be so. The respondent submits that on paying the agreed compensation and costs, its involvement and liability to costs should come to an end at that point. The question of apportionment is a matter between the court and the various dependants alone and does not involve or call for the participation of the respondent. For the applicants it is submitted that the litigation should be viewed in its proper broad context. The question of apportionment forms part of the litigation as a whole. It is the last, but important and necessary chapter, in the proceedings.

3. If the court were to take a narrow view, as contended for by the respondent, the dependants would be obliged to pay their own costs out of the compensation that has been awarded to them.

4. In my judgment, the applicants' submission is to be preferred. This final apportionment hearing must sensibly be viewed as part of the litigation as a whole for which the respondent must be responsible in terms of costs, particularly, I think, where I have ruled in the case of Lam Wing-sum v Lamfit Engineering Limited, DCEC370/99, that costs in such cases should be awarded on a party and party basis. Had the scale been on a common fund basis, then these costs might have been recoverable in any way, but where they clearly are not recoverable on a party and party taxation, it should be made clear, for the reasons that I have given, that the costs of the apportionment should also be viewed as part of the party and party costs of the litigation as a whole. The scope of the costs order does not stop once the amount of compensation has been agreed between the parties.