SUNNY IJAZ SALEEM t/a TIME PASIFIC INTERNATIONAL v. ZURICH INSURANCE CO (ASIA) LTD

IN THE HIGH COURT OF HONG KONG SAR

COURT OF FIRST INSTANCE

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JUDGMENT

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1. I gave judgement in favour of the Defendant on 13^th May 1998 and the judgment was given against the Plaintiff on the basis that I found that two of the substantial items, the subject of the claim, were not purchased by the Plaintiff and therefore could not have been destroyed by fire as alleged by the Plaintiff. I found as a fact that the claim was made fraudulently by the Plaintiff. The Judgment handed down indicated that the claim was dismissed with costs. Nothing was said in the Judgment about the scale of costs. The Order has not been drawn up.

2. In these circumstances, the Defendant underwriter now applies to the Court for an order that the costs to be paid by the Plaintiff to the Defendant should be on an indemnity scale and not on a party and party scale. I accept that submission. The circumstances of this case speak strongly for this special order of costs to be made and the Court of Appeal in Sung Foo Kee v Pak Lik Co. [1996] 3 HKC 570 has made it clear that in appropriate circumstances (which I regard this to be such as case), a Court could and sometimes is obliged to make the order of costs on an indemnity scale.

3. I have also been asked to provide for costs arising out of the written closing submissions prepared by Counsel, ordered by the Court. These written submissions were of substantial assistance to the Court and had in fact reduced the time it would otherwise have taken for the hearing of final submissions. I therefore order that counsel's fees for preparing the written closing submissions be allowed and taxed as half refreshers.

4. The costs of today's application is also to be paid by the Plaintiff on an indemnity scale. The Plaintiff's own costs are to be taxed in accordance with Legal Aid Regulations.