Hong Kong Regulations

THE RULES OF THE DISTRICT COURT - ORDER 22

PAYMENT INTO AND OUT OF COURT

1. Payment into Court (O. 22, r. 1)

(1) In any action for a debt or damages any defendant may at any time pay into
court a sum or sums of money in satisfaction of the cause of action in respect
of which the plaintiff claims or, where 2 or more causes of action are joined
in the action, a sum or sums of money in satisfaction of any or all of those
causes of action.

(2) On making any payment into court under this rule, and on increasing any
such payment already made, the defendant must give notice thereof in Form No.
23 in Appendix A to the plaintiff and every other defendant (if any); and
within 3 days after receiving the notice the plaintiff must send the defendant
a written acknowledgment of its receipt.

(3) A defendant may, without leave, give notice of an increase in a payment
made under this rule but, subject to that and without prejudice to paragraph
(5), a notice of payment may not be withdrawn or amended without the leave of
the Court which may be granted on such terms as may be just.

(4) Where 2 or more causes of action are joined in the action and money is
paid into court under this rule in respect of all, or some only of, those
causes of action, the notice of payment-

   (a)  must state that the money is paid in respect of all those causes of
        action or, as the case may be, must specify the cause or causes of
        action in respect of which payment is made; and

   (b)  where the defendant makes separate payments in respect of each, or any
        2 or more, of those causes of action, must specify the sum paid in
        respect of that cause or, as the case may be, those causes of action.

(5) Where a single sum of money is paid into court under this rule in respect
of 2 or more causes of action, then, if it appears to the Court that the
plaintiff is embarrassed by the payment, the Court may, subject to paragraph
(6), order the defendant to amend the notice of payment so as to specify the
sum paid in respect of each cause of action.

(6) Where a cause of action under the Fatal Accidents Ordinance ( Cap 22) and
a cause of action under sections 20 to 25 of the Law 
Amendment and Reform (Consolidation) Ordinance ( Cap 23) are joined in an
action, with or without any other cause of action, the causes of action under
the said Ordinances shall, for the purpose of paragraph (5), be treated as one
cause of action.

(8) For the purposes of this rule, the plaintiff's cause of action in respect
of a debt or damages shall be construed as a cause of action in respect, also,
of such interest as might be included in the judgment, whether under section
49 of the Ordinance or otherwise, if judgment were given at the date of the
payment into court.

2. Payment in by defendant who has counterclaimed
(O. 22, r. 2)

Where a defendant, who makes by counterclaim a claim against the plaintiff for
a debt or damages, pays a sum or sums of money into court under rule 1, the
notice of payment must state, if it be the case, that in making the payment
the defendant has taken into account and intends to satisfy-

   (a)  the cause of action in respect of which he claims; or

   (b)  where 2 or more causes of action are joined in the counterclaim, all
        those causes of action or, if not all, which of them.

3. Acceptance of money paid into Court (O. 22, r. 3)

(1) Where money is paid into court under rule 1, then, subject to paragraph
(2), within 14 days after receipt of the notice of payment or, where more than
one payment has been made or the notice has been amended, within 14 days after
receipt of the notice of the last payment or the amended notice but, in any
case, before the trial or hearing of the action begins, the plaintiff may-

   (a)  where the money was paid in respect of the cause of action or all the
        causes of action in respect of which he claims, accept the money in
        satisfaction of that cause of action or those causes of action, as the
        case may be; or

   (b)  where the money was paid in respect of some only of the causes of
        action in respect of which he claims, accept in satisfaction of any
        such cause or causes of action the sum specified in respect of that
        cause or those causes of action in the notice of payment, by giving
        notice in Form No. 24 in Appendix A to every defendant to the action.

(2) Where after the trial or hearing of an action has begun-

   (a)  money is paid into court under rule 1; or

   (b)  money in court is increased by a further payment into court under that
        rule, the plaintiff may accept the money in accordance with paragraph
        (1) within 2 days after receipt of the notice of payment or notice of
        the further payment, as the case may be, but, in any case, before the
        judge begins to deliver judgment.

(3) Rule 1(5) shall not apply in relation to money paid into court in an
action after the trial or hearing of the action has begun.

(4) On the plaintiff accepting any money paid into court all further
proceedings in the action or in respect of the specified cause or causes of
action, as the case may be, to which the acceptance relates, both against the
defendant making the payment and against any other defendant sued jointly with
or in the alternative to him, shall be stayed.

(5) Where money is paid into court by a defendant who made a counterclaim and
the notice of payment stated, in relation to any sum so paid, that in making
the payment the defendant had taken into account and satisfied the cause or
causes of action, or the specified cause or specified causes of action, in
respect of which he claimed, then, on the plaintiff accepting that sum, all
further proceedings on the counterclaim or in respect of the specified cause
or causes of action, as the case may be, against the plaintiff shall be
stayed.

(6) A plaintiff who has accepted any sum paid into court shall, subject to
rules 4 and 10 and Order 80, rule 12, be entitled to receive payment of that
sum in satisfaction of the cause or causes of action to which the acceptance
relates.

4. Order for payment out of money accepted required
in certain cases (O. 22, r. 4)

(1) Where a plaintiff accepts any sum paid into court and that sum was paid
into court-

   (a)  by some but not all of the defendants sued jointly or in the
        alternative by him; or

   (b)  with a defence of tender before action; or

   (c)  in an action to which Order 80, rule 12, applies; or

   (d)  in satisfaction either of causes of action arising under the
        Fatal Accidents Ordinance ( Cap 22) and sections 20 to 25 of the Law 
        Amendment and Reform (Consolidation) Ordinance ( Cap 23) or of a cause
        of action arising under the first-mentioned Ordinance where more than
        one person is entitled to the money, the money in court shall not be
        paid out except under paragraph (2) or in pursuance of an order of
        the Court, and the order shall deal with the whole costs of the action
        or of the cause of action to which the payment relates, as the case
        may be.

(2) Where an order of the Court is required under paragraph (1) by reason only
of paragraph (1)(a) then if, either before or after accepting the money paid
into court by some only of the defendants sued jointly or in the alternative
by him, the plaintiff discontinues the action against all the other defendants
and those defendants consent in writing to the payment out of that sum, it may
be paid out without an order of the Court.

(3) Where after the trial or hearing of an action has begun a plaintiff
accepts any money paid into court and all further proceedings in the action or
in respect of the specified cause or causes of action, as the case may be, to
which the acceptance relates are stayed by virtue of rule 3(4), then,
notwithstanding anything in paragraph (2), the money shall not be paid out
except in pursuance of an order of the Court, and the order shall deal with
the whole costs of the action.

5. Money remaining in Court (O. 22, r. 5)

If any money paid into court in an action is not accepted in accordance with
rule 3, the money remaining in court shall not be paid out except in pursuance
of an order of the Court which may be made at any time before, at or after the
trial or hearing of the action; and where such an order is made before the
trial or hearing the money shall not be paid out except in satisfaction of the
cause or causes of action in respect of which it was paid in.

6. Counterclaim (O. 22, r. 6)

A plaintiff against whom a counterclaim is made and any other defendant to the
counterclaim may pay money into court in accordance with rule 1, and that rule
and rules 3 (except paragraph (5)), 4 and 5 shall apply accordingly with the
necessary modifications.

7. Non-disclosure of payment into Court (O. 22, r. 7)

(1) Except in an action to which a defence of tender before action is pleaded,
and except in an action all further proceedings in which are stayed by virtue
of rule 3(4) after the trial or hearing has begun and subject to paragraph
(2), the fact that money has been paid into court under the foregoing
provisions of this Order shall not be pleaded and no communication of that
fact shall be made to the Court at the trial or hearing of the action or
counterclaim or of any question or issue as to the debt or damages until all
questions of liability and of the amount of the debt or damages have been
decided.

(2) Where the question of the costs of the issue of liability falls to be
decided, that issue having been tried and an issue or question concerning the
amount of the debt or damages remaining to be tried separately, any party may
bring to the attention of the Court the fact that a payment into court has or
has not been made and the date (but not the amount) of such payment or of the
first payment if more than one.

8. Money paid into Court under order (O. 22, r. 8)

(1) On making any payment into court under an order of the Court or a
certificate of a master, a party must give notice thereof to every other 
party to the proceedings.

(2) Subject to paragraph (3), money paid into court under an order of
the Court or a certificate of a master shall not be paid out except in
pursuance of an order of the Court.

(3) Unless the Court otherwise orders, a party who has paid money into court
in pursuance of an order made under Order 14-

   (a)  may by notice to the other party appropriate the whole or any part of
        the money and any additional payment, if necessary, to any particular
        claim made in the writ or counterclaim, as the case may be, and
        specified in the notice; or

   (b)  if he pleads a tender, may by his pleading appropriate the whole or
        any part of the money as payment into court of the money alleged to
        have been tendered, and money appropriated in accordance with this
        rule shall be deemed to be money paid into court in accordance with
        rule 1 or money paid into court with a plea of tender, as the case may
        be, and this Order shall apply accordingly.

10. Person to whom payment to be made (O. 22, r. 10)

(1) Where the party entitled to money in court is a person in respect of whom
a certificate is or has been in force entitling him to legal aid under the
Legal Aid Ordinance ( Cap 91), payment shall be made only to the Director of
Legal Aid without the need for any authority from the party.

(2) Subject to paragraph (1), payment shall be made to the party entitled or
to his solicitor.

(3) This rule applies whether the money in court has been paid into court
under rule 1 or under an order of the Court or a certificate of the Registrar.

11. Payment out: small intestate estates (O. 22, r. 11)

Where a person entitled to a fund in court, or a share of such fund, dies
intestate and the Court is satisfied that no grant of administration of his
estate has been made and that the assets of his estate, including the fund or
share, do not exceed $20000 in value, it may order that the fund or share
shall be paid, transferred or delivered to the person who, being a widower,
widow, child, father, mother, brother or sister of the deceased, would have
the prior right to a grant of administration of the estate of the deceased.

13. Investment of money in Court (O. 22, r. 13)

Cash under the control of or subject to the order of the Court may be invested
in any manner specified in the District Court Suitors' Funds  Rules ( Cap 336
sub. leg.) and the Trustee Ordinance ( Cap 29).

14. Written offers "without prejudice save as
to costs" (O. 22, r. 14)

(1) A party to proceedings may at any time make a written offer to
any other party to those proceedings which is expressed to be "without
prejudice save as to costs" and which relates to any issue in the proceedings.

(2) Where an offer is made under paragraph (1), the fact that such an offer
has been made shall not be communicated to the Court until the question of
costs falls to be decided: Provided that the Court shall not take such offer
into account if, at the time it is made, the party making it could have
protected his position as to costs by means of a payment into court under this
Order.