Case Overview:
The plaintiff alleged that Haosong Ma, a former employee, breached fiduciary duties, misappropriated funds, and committed fraud. The defendants counterclaimed for wrongful dismissal and damages.

Legal Arguments and Issues:
Key issues included:

• Alleged fiduciary breaches and fraud by Mr. Ma.

• The plaintiff’s procedural non-compliance, including failure to provide particulars or evidence for serious allegations.

• Defendants sought removal of a certificate of pending litigation (CPL) on Mr. Ma’s property and recovery of $30,000 held as security.

• The defendants also sought special costs due to the plaintiff’s misconduct.

Court Findings:
The court dismissed Lucky Eight’s claim and struck its response to the defendants' counterclaim due to procedural failures. The plaintiff was found to have made serious but unsubstantiated allegations while frustrating litigation through non-compliance with court rules and orders.

Costs and Award:
The court awarded the defendants special costs, finding the plaintiff’s conduct reprehensible. The defendants originally sought approximately $139,000 in special costs. Following an assessment, Registrar Gaily reduced this amount, allowing $92,687.20, including disbursements and taxes.

Outcome:
The court upheld the defendants’ position, penalizing Lucky Eight Enterprises Ltd. for litigation misconduct and lack of substantive evidence to support its claims.