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However, the Hong Kong courts
have endorsed the pre-CPR approach of the
English Court of Appeal in Macmillan Inc v Bishopsgate Investment Trust Ltd,
which envisages the possibility of making indemnity costs orders against litigants
"who cause costs to be incurred irrationally or out of all proportion as to what is at
stake".
Recommendation 42: The rules should make it clear that the court will
continue to exercise its discretion as to costs in relation to any offers of
settlement which do not meet the requirements to qualify as sanctioned offers.
Notes
In Sung Foo Kee Ltd v Pak Lik Co [1996] 3 HKC 570; and Choy Yee Chun (The representative of the
estate of Chan Pui Yiu) v Bond Star Development Limited [1997] HKLRD 1327.
10 December 1993 (unreported).
The position under the CPR (which give the court a wide discretion) were recently discussed in
Petrotrade Inc v Texaco Ltd (Note) [2002] 1 WLR 974 and Kiam v MGN Ltd (No 2) [2002] 1 WLR
2810.
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