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Matters for Attention
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2.4 Whilst the proposed amendments relate primarily to the recommendations in the Final Report, they have also taken into account developments and various other matters deliberated on by the Steering Committee since the publication of the Final Report -
(a) |
Costs-only Proceedings
(i) | The Steering Committee considered that costs-only proceedings in Recommendation 9 2 of the Final Report created a new cause of action. Amendments to the HCO and DCO are therefore necessary (see Clauses 2 to 5 of Draft Bill).
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(ii) | Moreover, costs-only proceedings should be dealt with at the High Court or the District Court only, depending on the amount of costs involved, i.e. costs exceeding $1 million at the High Court, and costs not exceeding $1 million at the District Court, as other levels of courts may not have the necessary expertise to deal with taxation of costs.
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(iii) | Amendments should be made to section 8 of the ("Lands Tribunal Ordinance ("LTO") (Cap. 17) to make it clear that the Lands Tribunal will not hear costs-only proceedings even if such proceedings arise out of a dispute which is within the jurisdiction of the Lands Tribunal.
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(iv) | Consequential amendments should be made to the Schedule to the Small Claims Tribunal Ordinance (Cap. 338) to make it clear that the Small Claims Tribunal shall not have jurisdiction to hear and determine costs-only proceedings, even if the amount of costs claimed is not more than $50,000 (see Clause 23 3 of Draft Bill).
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(b) | Costs Orders against Non-parties (Clause 2 of Draft Bill)
The Steering Committee considered that there should be amendments allowing costs orders to be made against non-parties.
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(c) | Interim Remedies and Mareva Injunctions in Aid of Foreign Proceedings (Clauses 8 to 11 of Draft Bill)
As the High Court has wide jurisdiction to deal with matters concerning foreign jurisdiction, the Steering Committee considers that the power to make interim remedies in aid of foreign proceedings should only be exercised by the High Court.
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(d) | Vexatious Litigants (Clause 12 of Draft Bill)
Section 27 of the HCO should be amended to take into account Recommendations 67 and 68 in the Final Report. It should be noted that the amended section 27 is not restricted to vexatious litigants in civil proceedings. Whilst it is rare for an individual to bring a private prosecution, it is not impossible. The Steering Committee therefore considers that the new section 27 in HCO need not be restricted to civil proceedings. |
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Notes |
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2 |
Recommendation 9 - A procedure should be introduced to enable parties who have settled their substantive dispute to bring costs-only proceedings by way of originating summons and subject to practice directions, for a party-and-party taxation of the relevant settlement costs. |
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3 |
Clause 23 in Part 8 of the Draft Bill is to be moved to Part 2. |
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