HOLSHIP UK LTD. v.TOTAL LOGISTICS INTERNATIONAL LTD.

HCAJ7/2006

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ADMIRALTY ACTION NO.7 OF 2006

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J U D G M E N T

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1. I have an application before me for security for costs.  The plaintiff does not now dispute that there is a liability to give security.  The dispute before me this morning is now on quantum.  

2. The dispute in this Action is not a straightforward matter.  In going through the pleadings Mr Tsui for the defendant has referred me to at least three substantial issues that are required to be resolved.  I am of the view, that having regard to the liberty to seek additional security that the security that is now sought to cover all steps up to discovery should be less than what is now claimed in the sum of $180,000.  $180,000 would be tantamount to over 50 hours of partners’ time.  Although this case is not straightforward, in my view, a sum of perhaps $120,000, representing hourly rate of $3,000 at 40 hours, will be more than sufficient for the present purposes.  The defendant can always come back for further security as is envisaged in the summons.

3. So the order I will make is order in term of paragraph 1 except the sum is $120,000 and the time allowed is 28 days from the date of this order, and paragraph 2 except there is no default provision in paragraph 2.  Paragraph 3 as stated in the summons and I will hear the parties on paragraph 4.