Lakatamia Shipping Company Limited v Tseng Yu Hsia & Anor

Lakatamia Shipping Company Limited v Tseng Yu Hsia & Anor

Ms Tseng was found liable for unlawful means conspiracy and the Marex tort for her role as a trusted conduit and administrator of assets for the Su family, knowingly participating in schemes to conceal and dissipate the Aeroplane Sale Proceeds and Monaco Sale Proceeds in breach of the Blair Freezing Order and to defeat enforcement of the Cooke Judgment Debt. Ms Morimoto was found liable by default for receipt of the Tokyo Sale Proceeds, which were transferred to her to defeat enforcement during a gap in the freezing order. Both defendants were properly served and had notice of proceedings but chose not to participate. Lakatamia was entitled to compensatory damages and interest.

Parties
Claimant: Lakatamia Shipping Company Limited; Defendant: Tseng Yu Hsia; Defendant: Chiharu Morimoto
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Commercial Court Claim / Judgment After Trial (on Merits Against Tseng Yu Hsia, Default Judgment Against Chiharu Morimoto)
Outcome
Judgment for the claimant against both defendants (on merits against Tseng Yu Hsia, default judgment against Chiharu Morimoto for Tokyo Sale Proceeds only).
Legal Topics
Unlawful Means Conspiracy, Inducement of Breach of Judgment (marex Tort), Enforcement of Judgments, Freezing Orders, Default Judgment
Civil Procedure Commercial Law Tort Law Unlawful Means Conspiracy Inducement of Breach of Judgment (marex Tort) Enforcement of Judgments Freezing Orders Default Judgment

Case Brief

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Parties

Lakatamia Shipping Company Limited

Claimant

Tseng Yu Hsia

Defendant

Chiharu Morimoto

Defendant

Procedural Posture

Commercial Court Claim / Judgment After Trial (on Merits Against Tseng Yu Hsia, Default Judgment Against Chiharu Morimoto)

Legal Issues

  1. 1 Whether Ms Tseng Yu Hsia and Ms Chiharu Morimoto were liable for unlawful means conspiracy and the Marex tort in relation to the concealment and dissipation of assets subject to a freezing order and judgment debt owed to Lakatamia.
  2. 2 Whether the Aeroplane Sale Proceeds and Monaco Sale Proceeds were assets amenable to execution by Lakatamia and within the scope of the freezing order.
  3. 3 Whether the claims against Ms Tseng and Ms Morimoto were properly served and whether the court should proceed in their absence.

Ratio Decidendi

Ms Tseng was found liable for unlawful means conspiracy and the Marex tort for her role as a trusted conduit and administrator of assets for the Su family, knowingly participating in schemes to conceal and dissipate the Aeroplane Sale Proceeds and Monaco Sale Proceeds in breach of the Blair Freezing Order and to defeat enforcement of the Cooke Judgment Debt. Ms Morimoto was found liable by default for receipt of the Tokyo Sale Proceeds, which were transferred to her to defeat enforcement during a gap in the freezing order. Both defendants were properly served and had notice of proceedings but chose not to participate. Lakatamia was entitled to compensatory damages and interest.

Court Disposition

Judgment for the claimant against both defendants (on merits against Tseng Yu Hsia, default judgment against Chiharu Morimoto for Tokyo Sale Proceeds only).

Orders

  • Ms Tseng Yu Hsia to pay Lakatamia US$857,329.73 (Aeroplane Sale Proceeds) and €27,127,855.01 (Monaco Sale Proceeds) plus interest of US$8,296,393.94 to 16 November 2023.
  • Ms Morimoto to pay Lakatamia JPY 240,000,000 (Tokyo Sale Proceeds) plus interest of JPY 19,982,291 to 9 November 2023, continuing at JPY 13,533.32 per day.