17 February 2025
Henry Chung Obtained Immediate Costs Order Despite Withdrawal of Injunction Summons
It is a general rule that a discontinuing or withdrawing party should bear corresponding costs. However, in Oasis Kindergarten Ltd v. Kowloon Tong Baptist Church [2025] HKCFI 467, the Court granted costs to the Plaintiff despite it withdrew its injunction summons. The Court found that, the Plaintiff was the effective winner of its injunction summons due to: (i) the definitive deadline attached to the injunctive reliefs sought, (ii) the terms of the Defendant’s interim undertaking were substantially similar with the injunctive reliefs, and (iii) the failure of the Defendant to re-open the injunction summons before the deadline had lapsed.
The Defendant also attempted to argue that the costs of the interlocutory injunction should await the conclusion of its counterclaim as the basis for the injunctive relief is intrinsically tied to the success or failure of its counterclaim. However, the Court rejected that argument and followed the Court of Appeal’s approach in Chow Steel Industries Public Company Limited & Ors v. Ko Sung & Ors [2021] HKCA 1642, namely, "it is not the law or practice that the costs of interlocutory injunctions should normally be in the cause of the underlying action” (§24). Instead, Courts in Hong Kong should be inclined to make immediate interlocutory cost orders since the ultimate result of a claim (and counterclaim) would not upset an otherwise justified and warranted interlocutory application.
Members Profile: Henry Chung