LCYP v. JEK AND ANOTHER

LCYP v. JEK AND ANOTHER

Court held (1) assets of Trust II are resources of the Husband under the Charman test and therefore available to meet Wife's needs; (2) s.17 application to set aside seven injections into Trust II failed for lack of evidence of intention to defeat the Wife; (3) adverse inferences noted for the Husband's poor disclosure but quantification of hidden assets could not be reliably fixed; (4) HK$22m was added back for disproportionate litigation costs and KK Loan repayment (US$593,716) restored to Husband's balance sheet; (5) having applied the PNA with appropriate weight but finding it unfair to hold Wife strictly to its terms given her sacrifice, court ordered provision to Wife of a housing...

Citation
[2019] HKCFI 1588
Parties
Petitioner: LCYP; 1st Respondent: JEK; 2nd Respondent: CTC
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 July 2019
Case Number
HCMC3/2018
Procedural Posture
Matrimonial Causes Ancillary Relief / Final Judgment (court of First Instance)
Outcome
S.17 application dismissed; Trust II treated as the Husband's resource for ancillary relief purposes; award made to Wife comprising housing and income funds and other undertakings; parties ordered to agree terms of final order within 21 days; costs reserved/conditional
Legal Topics
Ancillary Relief, Section 17 MPPO Dispositions, Prenuptial Agreement Weight and Interpretation, Charman Test for Discretionary Trusts, Adverse Inference for Non Disclosure, Add Back of Litigation Costs, Charging/chargeback on Capital
Source Language
EN
Matrimonial/family Law Trusts Property Law Contract (prenuptial Agreement) Civil Procedure Ancillary Relief Section 17 MPPO Dispositions Prenuptial Agreement Weight and Interpretation +4 more

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Parties

LCYP

Petitioner

JEK

1st Respondent

CTC

2nd Respondent

Procedural Posture

Matrimonial Causes Ancillary Relief / Final Judgment (court of First Instance)

Legal Issues

  1. 1 Whether assets held in Trust II are resources of the Husband under the Charman test
  2. 2 Whether seven injections into Trust II should be set aside under s.17 MPPO as dispositions made with intent to defeat the Wife's claim
  3. 3 Proper standard for assessing Wife's needs given an unvitiated prenuptial agreement

Ratio Decidendi

Court held (1) assets of Trust II are resources of the Husband under the Charman test and therefore available to meet Wife's needs; (2) s.17 application to set aside seven injections into Trust II failed for lack of evidence of intention to defeat the Wife; (3) adverse inferences noted for the Husband's poor disclosure but quantification of hidden assets could not be reliably fixed; (4) HK$22m was added back for disproportionate litigation costs and KK Loan repayment (US$593,716) restored to Husband's balance sheet; (5) having applied the PNA with appropriate weight but finding it unfair to hold Wife strictly to its terms given her sacrifice, court ordered provision to Wife of a housing...

Court Disposition

S.17 application dismissed; Trust II treated as the Husband's resource for ancillary relief purposes; award made to Wife comprising housing and income funds and other undertakings; parties ordered to agree terms of final order within 21 days; costs reserved/conditional

Orders

  • Dismissed the Wife's application under s.17 of the Matrimonial Proceedings and Property Ordinance to set aside injections into Trust II
  • Held that assets of Trust II are Husband's resources for the purpose of ancillary relief (Charman test applied)