Ignore Pre-Action Letters at Your Peril!

Originally published 25 January 2010

Keywords: Wong Shui Lam, pre-action letters, adverse costs, indemnity, Civil Justice Reform

Summary

The ruling in Wong Shui Lam v. Hospital Authority (HCPI 151/2009) sends a message that failure by the defendant to respond to a claimant's pre-action letters may result in adverse costs orders on an indemnity basis.

Full Update

Background

The Plaintiff sustained personal injury whilst in the employ of the Defendant. The Labour Department issued a summons against the Defendant for failing to ensure the safety and health of its employee. The Defendant was convicted and the Plaintiff subsequently commenced common law proceedings.

The Defendant conceded liability before the Check List Review hearing and judgment was made in favour of the Plaintiff on liability with damages to be assessed, with costs to the Plaintiff. The Plaintiff, however, applied for a costs order on an indemnity basis.