For discussion FCR(95-96)82
on 1 December 1995

ITEM FOR FINANCE COMMITTEE

HEAD 92 - LEGAL DEPARTMENT
Subhead 234 Court costs

Members are invited to approve supplementary provision of $22.8 million to meet anticipated increase in expenditure on court costs awarded against the Government.



PROBLEM

The revised provision of the subhead is insufficient to meet anticipated expenditure on court costs for the remainder of the financial year.

PROPOSAL

2. The Chambers Manager, Legal Department (CM/LD) proposes supplementary provision of $22.8 million under Subhead 234 Court costs.

JUSTIFICATION

3. The outcome of litigation is difficult to predict. CM/LD therefore cannot forecast accurately the precise amount needed to meet court costs awarded against the Government when preparing the draft Estimates. The original provision in the 1995-96 Estimates is $32.6 million. In July this year, based on the information supplied by CM/LD, the Secretary for the Treasury approved, under delegated authority, supplementary provision of $8 million when it became apparent that the provision was inadequate.

4. CM/LD has recently conducted another review of this subhead and further supplementary provision is likely to be required for 1995-96. his conclusion is that a further $22.8 million would be needed for the remainder of 1995-96and the estimated expenditure for the remainder of the financial year, as follows -


$

Actual expenditure up to 17 October 1995

29,316,745

Add Estimated expenditure from 18 October 1995
to 31 March 1996

33,984,000

Sub-total

63,300,745

Less Approved provision for 1995-96

32,600,000

Supplementary provision approved by the Secretary for the Treasury in July 1995

8,000,000

Equals Supplementary provision now required

22,700,745

Say

22,800,000

Details of the major court cases contributing to the actual expenditure to 18 October and anticipated expenditure in the remainder of 1995-96 are set out in Enclosure 1.

FINANCIAL IMPLICATIONS

5. If Members approve the proposal, the supplementary provision will be offset by deleting an equivalent amount under Head 106 Miscellaneous Services Subhead 251 Additional commitments.

BACKGROUND INFORMATION

6. In both criminal and civil cases, the court may award costs against one of the parties. The amount of costs payable is subject to negotiation between the two parties, failing which the bill has to be ‘taxed’, i.e. to be assessed by a Master of the Supreme Court.

7. Subhead 234 Court costs is a non-cash limited subhead. It is for the payment of costs awarded against the Government in civil and criminal cases.

8. In 1994, there were 460, 1 433 and 11 987 criminal cases in the High Court, District Court and Magistrate’s Court respectively. The conviction rates were 75.7%, 67.2% and 61% respectively.

9. A table showing the amount of court costs paid and recovered for the past five financial years is at Enclosure 2.

Legal Department
November 1995


Enclosure 1 to FCR(95-96)82

Details of Expenditure on Major Cases

$

$

I.

Actual expenditure to 17 October 1995 -

Civil cases

(a)

Inland Revenue Appeal No. 7/90 and
Civil Appeal No. 203/91
CIR V Chinachem Finance Co Ltd

1,631,162

(b)

High Court Miscellaneous Proceedings 3071/93
Shimizu Corporation V AG - Arbitration

560,000

(c)

25 cases of under $500,000 each

4,258,445

6,449,607

Criminal cases

(d)

District Court No. 589/93
Tin Tin Daily News

16,032,894

(e)

CA 166/94
Cheang Kuok-sam

1,150,000

(f)

District Court No. 775/93
R V Lee Jim-teck

950,000

(g)

High Court No. 18/90
R V Cham Siu-leun

913,794

(h)

High Court No. 417/93 and 73/94
R V Lai Tik-kwan

520,000

(i)

54 cases under $500,000 each

3,300,450

22,867,138

Total

29,316,745

II.

Estimated expenditure from 18 October 1995 to 31 March 1996 -

Civil cases

(j)

High Court Miscellaneous Proceedings No. 4148/93 and Court of Appeal 55/94
CLP - Coroner’s Inquest - JR

4,892,000

(k)

Inland Revenue Appeal No. 7/90 and
Civil Appeal No. 203/91
CIR V Chinachem Finance Co Ltd

3,700,000

(l)

High Court Miscellaneous Proceedings No. 1193/90
Letter of Request from Malaysia

1,280,000

(m)

High Court Miscellaneous Proceedings No. 600/94
Widearn Investment Ltd V The Buildings Ordinance Appeal Tribunal - JR

955,000

(n)

High Court Miscellaneous Proceedings No. 1245/93 and Court of Appeal No. 49/94
Loui Wai Po, Ming Pao Holdings Ltd V Obscene Articles Tribunal

932,000

(o)

Green Thumb Nursery Ltd V AG - Arbitration

804,000

(p)

High Court Miscellaneous Proceedings No. 3420/92
China Motor Co Ltd V Commissioner for Transport

654,000

(q)

Other cases of under $500,000 each

767,000

13,984,000

Criminal cases

(r)

High Court No. 18/90
R V Sin Cho-chiu, Charles

3,160,000

(s)

District Court No. 1127/92
R V Ling Kai-fai

3,151,000

(t)

High Court No. 158/94
R V Chun Yeung

1,099,000

(u)

High Court No. 303/94 and 15/95
R V Cheung Ming (D1), Tsui Ping-hei (D2) and Tsui Hoi (D4)

1,025,000

(v)

High Court No. 273/94
R V Wong Jen

839,000

(w)

District Court No. 116 and 117/92
R V Cheung Bik-kwong

795,000

(x)

Other cases under $500,000 each

9,931,000

20,000,000

Total

33,984,000

Grand -total

63,300,745


Enclosure 2 to FCR(95-96)82

Financial year

Number of cases

Amount

paid

Number of cases

Amount recovered

$’000

$’000

1990-91

Civil cases

31

6,334

490

3,767

Criminal cases

135

5,831

2

3

Total for 1990-91

166

12,165

492

3,770

1991-92

Civil cases

34

14,494

234

7,850

Criminal cases

117

6,287

1

1,979

Total for 1991-92

151

20,781

235

9,829

1992-93

Civil cases

33

6,222

649

4,070

Criminal cases

130

31,368

4

1,032

Total for 1992-93

163

37,590

653

5,102

1993-94

Civil cases

34

5,167

457

6,745

Criminal cases

114

12,424

8

6,873

Total for 1993-94

148

17,591

465

13,618

1994-95

Civil cases

56

6,865

526

7,084

Criminal cases

128

43,465

6

3,105

Total for 1994-95

184

50,330

532

10,189


Last Updated on 2 December 1998