LIAO CHEN TOH v. LOYAL INTERNATIONAL ENTERPRISES CO. LTD AND OTHERS

LIAO CHEN TOH v. LOYAL INTERNATIONAL ENTERPRISES CO. LTD AND OTHERS

The court exercised its equitable discretion to order further targeted disclosure because the plaintiffs were prima facie owners of the subject sums and the specific classes of documents sought were reasonably necessary to ascertain the whereabouts, purpose and consequences of transfers for effective preservation and tracing; delay and general inconvenience did not outweigh the need for disclosure and the defendants failed to show special prejudice or that compensation in damages made disclosure unnecessary.

Citation
[2021] HKCFI 164
Parties
Plaintiff by Original Claim; 1st Defendant by Counterclaim: Liao Chen Toh; 1st Defendant (original Action): Loyal International Enterprises Co. Ltd.; 2nd Defendant (original Action); 1st Plaintiff (by Counterclaim): Success House Industries Limited; 3rd Defendant (original Action); 2nd Plaintiff (by Counterclaim): New Success House Industries Limited; 4th Defendant (original Action); 3rd Plaintiff (by Counterclaim): Loyal Investment Limited; 2nd Defendant by Counterclaim: Silver State Enterprise Limited; Third Party (bank) Subject to Bankers Trust Orders: UBS AG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 January 2021
Case Number
HCA2302/2014
Procedural Posture
Interlocutory Applications for Further Disclosure and Bankers Trust Orders in Aid of Proprietary Injunctions (counterclaim) / Interlocutory Hearing and Written Reasons for Decision on Summonses (disclosure and Bankers Trust)
Outcome
Partially allowed the 2017 and 2018 Disclosure Summonses and associated Bankers Trust issues; ordered disclosure of the specified classes of documents and made detailed costs directions
Legal Topics
Ancillary Disclosure, Proprietary Injunction, Bankers Trust Order, Fund Tracing, Backward Tracing, Costs
Source Language
EN
Equity Civil Procedure Banking Law Injunctions Trusts and Tracing Ancillary Disclosure Proprietary Injunction Bankers Trust Order +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Liao Chen Toh

Plaintiff by Original Claim; 1st Defendant by Counterclaim

Loyal International Enterprises Co. Ltd.

1st Defendant (original Action)

Success House Industries Limited

2nd Defendant (original Action); 1st Plaintiff (by Counterclaim)

New Success House Industries Limited

3rd Defendant (original Action); 2nd Plaintiff (by Counterclaim)

Loyal Investment Limited

4th Defendant (original Action); 3rd Plaintiff (by Counterclaim)

Silver State Enterprise Limited

2nd Defendant by Counterclaim

UBS AG

Third Party (bank) Subject to Bankers Trust Orders

Procedural Posture

Interlocutory Applications for Further Disclosure and Bankers Trust Orders in Aid of Proprietary Injunctions (counterclaim) / Interlocutory Hearing and Written Reasons for Decision on Summonses (disclosure and Bankers Trust)

Legal Issues

  1. 1 Whether further disclosure orders should be made to give effect to ancillary disclosure orders attached to proprietary injunctions
  2. 2 Scope and application of Bankers Trust orders to obtain bank records and missing bank statements
  3. 3 Whether documents sought (insurance policies, payments to Richstar, SPEC transactions, call deposit advices and other bank statements) are reasonably necessary for tracing the said sums and their proceeds

Ratio Decidendi

The court exercised its equitable discretion to order further targeted disclosure because the plaintiffs were prima facie owners of the subject sums and the specific classes of documents sought were reasonably necessary to ascertain the whereabouts, purpose and consequences of transfers for effective preservation and tracing; delay and general inconvenience did not outweigh the need for disclosure and the defendants failed to show special prejudice or that compensation in damages made disclosure unnecessary.

Court Disposition

Partially allowed the 2017 and 2018 Disclosure Summonses and associated Bankers Trust issues; ordered disclosure of the specified classes of documents and made detailed costs directions

Orders

  • Ordered disclosure in terms of specified paragraphs of the 2017 Disclosure Summons and 2018 Disclosure Summons, including unredacted insurance policy documents and terms, particulars and documents relating to payments to Richstar, particulars and documents concerning transfers to SPEC, documents concerning the...
  • Ordered UBS AG be paid its costs of complying with Bankers Trust applications by the 1st and 2nd plaintiffs on an indemnity basis if not agreed; plaintiffs to pay UBS AG costs of application to be taxed on indemnity basis where applicable