RE VINCENT KAY LO IP

HCB 1209/2000

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO. 1209 OF 2000

______________________

______________________

_______________

J U D G M E N T

_______________

Application

1. This is an application by the Official Receiver and Trustee (“the OR”) to vary a costs nisi to the extent that a lump sum assessment is to be preferred.

Background

2. On 14 January 2005, I handed down a judgment which allowed the OR’s application to suspend the automatic discharge of a bankruptcy order against Dr. Vincent Kay Lo Ip (“the Bankrupt”) for 4 years.  In short, I agreed the complaints made by the OR against the Bankrupt as per section 30A(4)(b), (c) and (d) of the Bankruptcy Ordinance.  I further ordered that costs of the OR incidental to and of the application be borne by the Bankrupt, to be taxed if not agreed.

Gross Sum Assessment

3. By a letter of 18 January 2005, the OR invited me to exercise my power under Order 62 rule 9(4)(b) of the Rules of the High Court for a gross sum assessment on costs to be borne by the Bankrupt.  The OR asked for the sum of HK$94,600, particulars of which are:

(a)	Professional Work			HK$
	(i)	Preparation of Documents: (2 reports)	7 hours	28,000
	(ii)	Perusal of Documents:	5 hours	20,000
	(iii)	Preparation for hearing:	4 hours	16,000
	(iv)	Hearing including call-over:	6 1/3 hours	25,200
(b)	Mechanical & Manual Work
	Photocopying charges (1800 pages x HK$3)			5,400
				94,600
	(N.B. Ms. Karen Cheung was admitted in the year of 1995 and claimed for an hourly rate of $4,000.)

4. The matter was fixed to be heard on 19 April 2005.  I heard no comment from the Bankrupt upon the OR’s application as well as the figures proposed, except that he was appealing against my judgment on 14 January 2005 and questioned if the costs awarded by me were “provable debt” or not.  As I told the Bankrupt at the hearing, these matters were not relevant for the purpose of the gross sum assessment on costs.  He could seek independent legal advice for the questions he raised.

5. Nonetheless, having heard further from the OR as to the time and costs spent in the application, I will only adjust the hourly rate claimed by Ms. Cheung as I find no reason to deviate from the suggested rate as contained in Law Society Circular 97-234 (PA).  Ms. Cheung is a solicitor with 7 to 8 p.q.e., and is entitled to earn $3,500.00 per hour usually at party-and-party taxation.

6. Ms. Cheung claimed 7 hours in preparing 2 Reports of the OR.  They were filed on 16 July 2004 and 8 September 2004 respectively.  These Reports altogether contained no less than 20 pages in their bodies and about 150 pages of exhibits.  It would take some time for Ms. Cheung to understand the case, digest the materials and came up with specified grounds.  7 hours is proper in the circumstances.

7. On the other hand, the Bankrupt filed quite some materials to oppose the OR’s application:

(a)	Affidavit of the Bankrupt filed on 2 August 2004, 2 pages and exhibits of about 200 pages;
(b)	Affidavit of the Bankrupt filed on 18 August 2004, 15 pages and exhibits of about 50 pages;
(c)	Affidavit of the Bankrupt filed on 3 December 2004, 3 pages and exhibits of about 120 pages;

It is necessary to spend 5 hours to go through these documents.

8. The hearings took place on 3 occasions, one call-over hearing on 11 August 2004 before Mr. Registrar C. Chan.  20 minutes is within the usual time frame allowed by this Court.  The other 2 hearings were held before me and no less than 6 hours had been spent by the parties.  In light of the said 3 hearings and the voluminous documents filed by the Bankrupt, I find 4 hours’ preparation time both proper and necessary in the circumstances.  Finally, I am also satisfied that the documents and the hearing bundles before me contain not less than 1800 pages of documents as suggested by the OR.

Conclusion

9. In the premises, I agree to vary my said costs order nisi as prayed and summarily assess the same at HK$83,567.00.

Particulars
(a)	Professional Work			HK$
	(i)	Preparation of Documents:	7 hours x $3,500	=24,500
	(ii)	Perusal of Documents:	5 hours x $3,500	=17,500
	(iii)	Preparation for hearing:	4 hours x $3,500	=14,000
	(iv)	Hearing including call-over:	6 1/3 hours x $3,500	=22,167
(b)	Mechanical & Manual Work
	Photocopying charges (1800 pages x HK$3)			5,400
				83,567