FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG

FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG

Applicant failed to establish prima facie relevance of the requested classes of documents to the issues in dispute; the AFS did not disclose the Trading JV or allow segregation of FHI's own business from the alleged JV business; the Summaries did not prima facie relate to the Trading JV; disclosure sought was wide and disproportionate contrary to Order 1A objectives; Class 7 documents were not shown to be in respondents' possession—therefore specific discovery refused and appeal dismissed.

Citation
[2018] HKCFI 1612
Parties
Plaintiff (original Action); 1st Defendant (counterclaim): Fok Hing International Company Limited; Defendant (original Action); Plaintiff (counterclaim): Liu Hsiao Cheng; 2nd Defendant (counterclaim): Wong Shu Wai
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 July 2018
Case Number
HCA97/2013
Procedural Posture
Civil Action Concerning Alleged Loan, Joint Venture Profits and Accounting; Counterclaim for Accounting and Unjust Enrichment / Interlocutory Appeal Against Registrar's Refusal of Specific Discovery Under Order 24; Decision on Application for Specific Discovery
Outcome
Appeal dismissed; application for specific discovery refused
Legal Topics
Discovery (order 24), Specific Discovery, Accounting for Profits, Existence and Terms of Joint Venture, Fiduciary Duties, Proportionality and Civil Justice Reform
Source Language
EN
Civil Procedure Company Law Partnership and Joint Venture Law Equity (accounting/unjust Enrichment) Evidence and Disclosure Discovery (order 24) Specific Discovery Accounting for Profits +3 more

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Parties

Fok Hing International Company Limited

Plaintiff (original Action); 1st Defendant (counterclaim)

Liu Hsiao Cheng

Defendant (original Action); Plaintiff (counterclaim)

Wong Shu Wai

2nd Defendant (counterclaim)

Procedural Posture

Civil Action Concerning Alleged Loan, Joint Venture Profits and Accounting; Counterclaim for Accounting and Unjust Enrichment / Interlocutory Appeal Against Registrar's Refusal of Specific Discovery Under Order 24; Decision on Application for Specific Discovery

Legal Issues

  1. 1 Whether HK$1,000,000 was a loan or prepayment of profit share
  2. 2 Whether the oral JV Agreement existed and its terms
  3. 3 Whether the Trading JV existed and the quantum of its cumulative profits

Ratio Decidendi

Applicant failed to establish prima facie relevance of the requested classes of documents to the issues in dispute; the AFS did not disclose the Trading JV or allow segregation of FHI's own business from the alleged JV business; the Summaries did not prima facie relate to the Trading JV; disclosure sought was wide and disproportionate contrary to Order 1A objectives; Class 7 documents were not shown to be in respondents' possession—therefore specific discovery refused and appeal dismissed.

Court Disposition

Appeal dismissed; application for specific discovery refused

Orders

  • Discovery refused for Class 1 documents (AFS for years 2004–2006)
  • Discovery refused for Class 5 and Class 6 documents (underlying records for entries in March 2012 and June 2012 Summaries)