Chen & Ors v Chui & Ors (Rev 1) [2011] EWHC 1276 (Ch) (12 May 2011)

Chen & Ors v Chui & Ors (Rev 1) [2011] EWHC 1276 (Ch) (12 May 2011)

The court held that the freezing injunction was properly granted and should be continued against Mrs. Chen and Boqian Du, as there was sufficient evidence of asset dissipation intended to frustrate enforcement of costs orders, the procedural requirements for joinder were satisfied, and neither Article 6 nor Article 8 ECHR rights were violated in the circumstances. The application to discharge or vary the injunction was rejected.

Citation
[2011] EWHC 1276 (Ch)
Parties
Claimant: C. Chen; Claimant: An Xiang Du; Defendant: G. Chui; Defendant: Ji Feng Ding; Defendant: Herb Magic UK Ltd.; Defendant: Paul Delaney; Defendant: Boqian Du
Jurisdiction
England and Wales
Judgment Date
12 May 2011
Procedural Posture
Chancery Civil Litigation / Post Judgment, Enforcement and Interlocutory Applications
Outcome
Application to discharge or vary freezing injunction rejected; injunction continued.
Legal Topics
Freezing Injunctions, Third Party Debt Orders, Asset Dissipation, Costs Enforcement, Joinder of Parties, Transaction at Undervalue, Article 6 ECHR, Article 8 ECHR
Civil Procedure Company Law Equity Injunctions Freezing Injunctions Third Party Debt Orders Asset Dissipation Costs Enforcement +4 more

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Parties

C. Chen

Claimant

An Xiang Du

Claimant

G. Chui

Defendant

Ji Feng Ding

Defendant

Herb Magic UK Ltd.

Defendant

Paul Delaney

Defendant

Boqian Du

Defendant

Procedural Posture

Chancery Civil Litigation / Post Judgment, Enforcement and Interlocutory Applications

Legal Issues

  1. 1 Whether a freezing injunction should be continued against the Claimant and fifth Defendant in aid of enforcement of costs orders
  2. 2 Whether joinder of a non-party (Boqian Du) is procedurally correct without amended pleadings
  3. 3 Whether the transfer of assets by Claimants was intended to frustrate enforcement

Ratio Decidendi

The court held that the freezing injunction was properly granted and should be continued against Mrs. Chen and Boqian Du, as there was sufficient evidence of asset dissipation intended to frustrate enforcement of costs orders, the procedural requirements for joinder were satisfied, and neither Article 6 nor Article 8 ECHR rights were violated in the circumstances. The application to discharge or vary the injunction was rejected.

Court Disposition

Application to discharge or vary freezing injunction rejected; injunction continued.

Orders

  • Freezing injunction continued against Mrs. Chen and Boqian Du, limited to £80,000.
  • Order for provision of information by Mrs. Chen and Boqian Du regarding dealings with 37 Witnell Road and Fu Kang shares and proceeds, answers required by 25 May 2011.