YANG YUN AND OTHERS v. CHINA YUN LONG INVESTMENT HOLDINGDS GROUP LTD (formerly known as CHINA SHOUTONG INVESTMENTS HOLDING GROUP LTD) AND ANOTHER

YANG YUN AND OTHERS v. CHINA YUN LONG INVESTMENT HOLDINGDS GROUP LTD (formerly known as CHINA SHOUTONG INVESTMENTS HOLDING GROUP LTD) AND ANOTHER

The summons for leave to adduce the 3rd affirmation was dismissed because the plaintiffs failed the first Ladd v Marshall condition: the Financial Statements and auditor email were already in plaintiffs' possession before the Master’s hearing and plaintiffs did not demonstrate reasonable diligence or a strongly pleaded and established case of fraud to justify relaxing the rule; consequently leave was refused and costs were awarded to defendants.

Citation
[2025] HKCFI 4218
Parties
1st Plaintiff: YANG YUN (楊云); 2nd Plaintiff: CHAN YUEN SANG (陳遠生); 3rd Plaintiff: WONG LUEN TUNG (黃聯東); 1st Defendant: CHINA YUN LONG INVESTMENT HOLDDS GROUP LIMITED （中國云龍投資控股集團有限公司）; 2nd Defendant: TOP ELITE GROUP LIMITED (建輝集團有限公司)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 August 2025
Case Number
HCA1173/2021
Procedural Posture
Civil: Contractual Dispute (sale and Purchase of Shares) / Application for Leave to Adduce Evidence on Appeal (interlocutory; Decision in Chambers Prior to Appeal)
Outcome
Summons dismissed; leave to adduce the 3rd Affirmation refused; costs awarded to defendants.
Legal Topics
Leave to Adduce Evidence on Appeal, Ladd V Marshall Criteria, Allegation of Fraud in Civil Proceedings, Summary Assessment of Costs
Source Language
EN
Contract Law Civil Procedure Evidence Company Law Leave to Adduce Evidence on Appeal Ladd V Marshall Criteria Allegation of Fraud in Civil Proceedings Summary Assessment of Costs

Case Brief

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Parties

YANG YUN (楊云)

1st Plaintiff

CHAN YUEN SANG (陳遠生)

2nd Plaintiff

WONG LUEN TUNG (黃聯東)

3rd Plaintiff

CHINA YUN LONG INVESTMENT HOLDDS GROUP LIMITED （中國云龍投資控股集團有限公司）

1st Defendant

TOP ELITE GROUP LIMITED (建輝集團有限公司)

2nd Defendant

Procedural Posture

Civil: Contractual Dispute (sale and Purchase of Shares) / Application for Leave to Adduce Evidence on Appeal (interlocutory; Decision in Chambers Prior to Appeal)

Legal Issues

  1. 1 Whether the evidence could have been obtained with reasonable diligence (first Ladd v Marshall condition)
  2. 2 Whether the late evidence would probably have an important influence on the result
  3. 3 Whether there is a strong and pleaded case of fraud justifying relaxation of Ladd v Marshall

Ratio Decidendi

The summons for leave to adduce the 3rd affirmation was dismissed because the plaintiffs failed the first Ladd v Marshall condition: the Financial Statements and auditor email were already in plaintiffs' possession before the Master’s hearing and plaintiffs did not demonstrate reasonable diligence or a strongly pleaded and established case of fraud to justify relaxing the rule; consequently leave was refused and costs were awarded to defendants.

Court Disposition

Summons dismissed; leave to adduce the 3rd Affirmation refused; costs awarded to defendants.

Orders

  • Summons dismissed and leave to adduce the 3rd Affirmation (Yang 3rd) refused.
  • Plaintiffs to pay defendants' costs of the Summons to be summarily assessed.