AIG ASIA DIRECT INVESTMENT FUND LTD AND OTHERS v. NGAI WAI LUN, WILLIAM AND ANOTHER

AIG ASIA DIRECT INVESTMENT FUND LTD AND OTHERS v. NGAI WAI LUN, WILLIAM AND ANOTHER

The court refused to vary the maximum sum because the plaintiffs produced evidence of recent market transactions supporting a US$8.5m valuation for the 10% shareholding and the existing maximum of US$6.5m was appropriate; the court ordered limited discovery by affidavit of assets up to US$6.5m within 14 days and rejected the defendants' offer to provide shares as security as inadequate at this stage.

Citation
AIG ASIA DIRECT INVESTMENT FUND LTD AND OTHERS v. NGAI WAI LUN, WILLIAM AND ANOTHER
Parties
1st Plaintiff: AIG ASIA DIRECT INVESTMENT FUND LTD; 2nd Plaintiff: KF ASIA NO.2 INVESTMENT ENTERPRISE PARTNERSHIP; 3rd Plaintiff: THE PHILIPPINE AMERICAN LIFE INSURANCE COMPANY; 4th Plaintiff: AMERICAN INTERNATIONAL ASSURANCE COMPANY (BERMUDA) LIMITED; 1st Defendant: NGAI WAI LUN, WILLIAM; 2nd Defendant: NGAI YUEN TING, RITA
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 July 1999
Case Number
HCCL31/1998
Procedural Posture
Commercial Injunction (mareva) / Interlocutory Variation Application to Maximum Sum and Ancillary Discovery/security Issues
Outcome
Application to vary maximum sum dismissed; Mareva injunction maintained at US$6.5 million; discovery ordered; proposed share undertaking rejected.
Legal Topics
Mareva Injunction, Freezing Order, Discovery for Assets, Valuation of Shares, Security for Claim
Source Language
EN
Civil Procedure Injunctions Commercial Law Equity Mareva Injunction Freezing Order Discovery for Assets Valuation of Shares +1 more

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Parties

AIG ASIA DIRECT INVESTMENT FUND LTD

1st Plaintiff

KF ASIA NO.2 INVESTMENT ENTERPRISE PARTNERSHIP

2nd Plaintiff

THE PHILIPPINE AMERICAN LIFE INSURANCE COMPANY

3rd Plaintiff

AMERICAN INTERNATIONAL ASSURANCE COMPANY (BERMUDA) LIMITED

4th Plaintiff

NGAI WAI LUN, WILLIAM

1st Defendant

NGAI YUEN TING, RITA

2nd Defendant

Procedural Posture

Commercial Injunction (mareva) / Interlocutory Variation Application to Maximum Sum and Ancillary Discovery/security Issues

Legal Issues

  1. 1 Whether the maximum sum of the Mareva injunction should be varied
  2. 2 Whether the defendants' valuations displace the plaintiffs' market transaction evidence
  3. 3 Whether discovery of defendants' assets up to the injunction limit should be ordered

Ratio Decidendi

The court refused to vary the maximum sum because the plaintiffs produced evidence of recent market transactions supporting a US$8.5m valuation for the 10% shareholding and the existing maximum of US$6.5m was appropriate; the court ordered limited discovery by affidavit of assets up to US$6.5m within 14 days and rejected the defendants' offer to provide shares as security as inadequate at this stage.

Court Disposition

Application to vary maximum sum dismissed; Mareva injunction maintained at US$6.5 million; discovery ordered; proposed share undertaking rejected.

Orders

  • Offer to provide Jatcom Inc. shares in Infocom as security rejected