GAIN PARK HOLDINGS LTD AND ANOTHER v. EVERSINO INVESTMENTS LTD AND OTHERS

GAIN PARK HOLDINGS LTD AND ANOTHER v. EVERSINO INVESTMENTS LTD AND OTHERS

Plaintiffs failed to show Hong Kong was clearly the appropriate forum; the central factual issues (alleged detention, coercion and notarial acts) arose and are to be resolved in the PRC where witnesses and state authorities reside and where related proceedings are pending, therefore the Master’s order granting leave to serve out of jurisdiction is set aside and the Hong Kong action is stayed in favour of the PRC court.

Citation
GAIN PARK HOLDINGS LTD AND ANOTHER v. EVERSINO INVESTMENTS LTD AND OTHERS
Parties
1st Plaintiff: Gain Park Holdings Limited; 2nd Plaintiff: Shum Man Fu (also known as Shen Wenfu); 1st Defendant: Eversino Investments Limited; 2nd Defendant: Shagang Group (Hong Kong) Holdings Limited; 3rd Defendant: Shagang Shipping Company Limited; 4th Defendant: Jiangsu Shagang International Trade Co. Limited; 5th Defendant: Shagang International (Hong Kong) Co. Ltd; 6th Defendant: Shagang Group (Hong Kong) Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 November 2014
Case Number
HCA1638/2013
Procedural Posture
Civil Commercial/company/share Transfer Dispute / Interim Applications: Setting Aside Leave to Serve Out of Jurisdiction and Stay Application on Forum Non Conveniens Grounds
Outcome
Master H Au Yeung’s order dated 29 October 2013 granting leave to serve out of jurisdiction set aside; proceedings in Hong Kong stayed in favour of the PRC court as the distinctly more appropriate forum; costs ordered nisi against plaintiffs
Legal Topics
Forum Non Conveniens, Service Out of Jurisdiction, Duress, Undue Influence, Non Est Factum, Share Transfer, Rescission, Costs
Source Language
EN
Civil Commercial Company Law Private International Law Forum Non Conveniens Service Out of Jurisdiction Duress Undue Influence +4 more

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Parties

Gain Park Holdings Limited

1st Plaintiff

Shum Man Fu (also known as Shen Wenfu)

2nd Plaintiff

Eversino Investments Limited

1st Defendant

Shagang Group (Hong Kong) Holdings Limited

2nd Defendant

Shagang Shipping Company Limited

3rd Defendant

Jiangsu Shagang International Trade Co. Limited

4th Defendant

Shagang International (Hong Kong) Co. Ltd

5th Defendant

Shagang Group (Hong Kong) Holdings Limited

6th Defendant

Procedural Posture

Civil Commercial/company/share Transfer Dispute / Interim Applications: Setting Aside Leave to Serve Out of Jurisdiction and Stay Application on Forum Non Conveniens Grounds

Legal Issues

  1. 1 Whether the transfer documents were signed involuntarily under duress/coercion or invalid by non est factum or undue influence
  2. 2 Whether the Hong Kong court is the appropriate forum or whether the PRC court is clearly more appropriate (forum non conveniens)
  3. 3 Whether leave to serve the writ out of jurisdiction should be set aside under Order 12 r 8/Order 11 r 1

Ratio Decidendi

Plaintiffs failed to show Hong Kong was clearly the appropriate forum; the central factual issues (alleged detention, coercion and notarial acts) arose and are to be resolved in the PRC where witnesses and state authorities reside and where related proceedings are pending, therefore the Master’s order granting leave to serve out of jurisdiction is set aside and the Hong Kong action is stayed in favour of the PRC court.

Court Disposition

Master H Au Yeung’s order dated 29 October 2013 granting leave to serve out of jurisdiction set aside; proceedings in Hong Kong stayed in favour of the PRC court as the distinctly more appropriate forum; costs ordered nisi against plaintiffs

Orders

  • Set aside the order of Master H Au Yeung dated 29 October 2013 giving leave to serve the Concurrent Writ of Summons out of jurisdiction
  • Stay the Hong Kong proceedings in favour of the PRC court as being the distinctly more appropriate forum