TENWOW INTERNATIONAL HOLDINGS LIMITED (IN LIQUIDATION) AND ANOTHER v. PRICEWATERHOUSECOOPERS (A FIRM) AND ANOTHER

TENWOW INTERNATIONAL HOLDINGS LIMITED (IN LIQUIDATION) AND ANOTHER v. PRICEWATERHOUSECOOPERS (A FIRM) AND ANOTHER

The application for a Letter of Request was dismissed because (1) a LOR is not the appropriate mechanism to enable a party to satisfy its disclosure obligations in Hong Kong; (2) Article 6 of the Mutual Arrangement does not encompass seeking Mainland administrative approval for transfer of documents and thus the Mutual Arrangement could not be relied upon to obtain such approval; (3) D2 failed to demonstrate a blanket prohibition under Mainland law or any specific Regulated Information in the documents requiring pre-transfer approval; and (4) even if arguable, considerations of futility, delay and prejudice to trial preparation meant the court would not exercise its discretion to issue a...

Citation
[2024] HKCFI 1146
Parties
1st Plaintiff: Tenwow International Holdings Limited (in liquidation); 2nd Plaintiff: Nan Pu International Limited (in creditors' voluntary winding up); 1st Defendant: PricewaterhouseCoopers (a firm); 2nd Defendant: 普华永道中天会计师事务所 (特殊普通合伙) PRICEWATERHOUSECOOPERS ZHONG TIAN LLP
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 May 2024
Case Number
HCCL5/2023
Procedural Posture
Commercial Action (consolidated) / Interlocutory Application for Letter of Request and Discovery Directions
Outcome
Notice of Application dismissed; D2 ordered to produce documents pursuant to existing directions
Legal Topics
Letter of Request, Mutual Taking of Evidence (mainland Hksar), Disclosure/inspection of Documents, Foreign Law Compliance, Regulation of Audit Working Papers, Discretionary Refusal of Judicial Assistance
Source Language
EN
Civil Procedure Commercial Law Private International Law Insolvency Evidence Law Letter of Request Mutual Taking of Evidence (mainland Hksar) Disclosure/inspection of Documents +3 more

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Parties

Tenwow International Holdings Limited (in liquidation)

1st Plaintiff

Nan Pu International Limited (in creditors' voluntary winding up)

2nd Plaintiff

PricewaterhouseCoopers (a firm)

1st Defendant

普华永道中天会计师事务所 (特殊普通合伙) PRICEWATERHOUSECOOPERS ZHONG TIAN LLP

2nd Defendant

Procedural Posture

Commercial Action (consolidated) / Interlocutory Application for Letter of Request and Discovery Directions

Legal Issues

  1. 1 Whether a Letter of Request may be used to assist a party to comply with its discovery obligations
  2. 2 Whether the Mutual Arrangement applies to obtain approval for transfer of documents from the Mainland
  3. 3 Whether the Court should exercise its discretion to issue a Letter of Request

Ratio Decidendi

The application for a Letter of Request was dismissed because (1) a LOR is not the appropriate mechanism to enable a party to satisfy its disclosure obligations in Hong Kong; (2) Article 6 of the Mutual Arrangement does not encompass seeking Mainland administrative approval for transfer of documents and thus the Mutual Arrangement could not be relied upon to obtain such approval; (3) D2 failed to demonstrate a blanket prohibition under Mainland law or any specific Regulated Information in the documents requiring pre-transfer approval; and (4) even if arguable, considerations of futility, delay and prejudice to trial preparation meant the court would not exercise its discretion to issue a...

Court Disposition

Notice of Application dismissed; D2 ordered to produce documents pursuant to existing directions

Orders

  • The Notice of Application dated 1 December 2023 is dismissed
  • D2 must comply with its obligation to produce the documents listed in D2’s List of Documents by virtue of paragraph 5 of this Court’s directions dated 8 November 2023