XCHRX AWT WORLD TRANSPORT GROUP LTD. v. CHINA UNITED HOLDINGS LTD.

HCA 21883/1998

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 21883 OF 1998

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J U D G M E N T

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Godfrey, J.A. :

1. This is an application by a defendant for security for costs. The plaintiff is a company incorporated in the British Virgin Islands, carrying on business in Hong Kong. There is no evidence that the plaintiff has assets here to meet any award of costs which may be made against it and indeed it seems clear that it is short of funds. I am satisfied that it would be right to order security as asked but, as to quantum, I do not think it right at this stage to order security for all the costs of the action, as there is pending an application by the plaintiff for summary judgment which is to be heard in August and which, if successful, will obviate a trial altogether. I shall therefore order only limited security, giving the defendant liberty to apply for further security if so advised after the plaintiff's application for summary judgment has been determined. I shall fix the sum at $90,000.00, the security to be given within 14 days and the action to stand dismissed if it be not so given. I shall make no order as to costs.