CANTON PLUS ENTERPRISE LTD AND ANOTHER v. TONG ZHENJUN AND OTHERS

CANTON PLUS ENTERPRISE LTD AND ANOTHER v. TONG ZHENJUN AND OTHERS

Preservation and identification of the removed documents is necessary and appropriately ordered under Order 29 r 2; an independent solicitors' firm is to be appointed to identify and copy documents, with originals returned and copies retained in escrow; inspection is premature and is reserved pending identification and, where relevant, Order 24 r 7 affirmations and resolution of privilege objections; reciprocal O24 r7 affirmations are ordered for specified entities.

Citation
[2018] HKCFI 1402
Parties
1st Plaintiff; 2nd Defendant (by Counterclaim): Canton Plus Enterprise Limited; 2nd Plaintiff; 3rd Defendant (by Counterclaim): ANAIS DEVELOPMENT SA; 1st Defendant: TONG ZHENJUN (童楨軍); 2nd Defendant: LIANG PAN (梁攀); 3rd Defendant; Plaintiff (by Counterclaim): LAU WING YAN (劉永人); 4th Defendant: PROSPEROUS ELITE VENTURES LIMITED (also known as 鑫傑創投有限公司); 5th Defendant: PACIFIC BULK CAPE COMPANY LIMITED; 6th Defendant: PACIFIC BULK ENTERPRISES COMPANY LIMITED; 7th Defendant: PACIFIC BULK PANAMAX COMPANY LIMITED; 8th Defendant: PACIFIC BULK SUPRAMAX COMPANY LIMITED; 9th Defendant: PROFIT FAR LIMITED (also known as 益遠有限公司); 10th Defendant: PACIFIC BULK SHIPPING LIMITED; 1st Defendant (by Counterclaim): CHU KONG (朱江)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 June 2018
Case Number
HCA227/2017
Procedural Posture
Interlocutory Application for Preservation and Inspection of Documents in Civil Company/shareholder Litigation / Interlocutory — Decision on Summons in Chambers; Preservation Ordered, Inspection Reserved
Outcome
Interlocutory orders made: preservation and identification ordered under Order 29 r 2; appointment of independent solicitors to identify and copy documents; inspection reserved pending identification and O24 r7 affirmations; reciprocal O24 r7 affirmations ordered for specified companies; costs reserved.
Legal Topics
Preservation of Documents, Inspection of Documents, Order 29 Rule 2, Order 24 Rule 10, Order 24 Rule 7, Reciprocal Discovery, Derivative Action
Source Language
EN
Civil Procedure Company Law Evidence Interim Remedies Discovery Preservation of Documents Inspection of Documents Order 29 Rule 2 +4 more

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Parties

Canton Plus Enterprise Limited

1st Plaintiff; 2nd Defendant (by Counterclaim)

ANAIS DEVELOPMENT SA

2nd Plaintiff; 3rd Defendant (by Counterclaim)

TONG ZHENJUN (童楨軍)

1st Defendant

LIANG PAN (梁攀)

2nd Defendant

LAU WING YAN (劉永人)

3rd Defendant; Plaintiff (by Counterclaim)

PROSPEROUS ELITE VENTURES LIMITED (also known as 鑫傑創投有限公司)

4th Defendant

PACIFIC BULK CAPE COMPANY LIMITED

5th Defendant

PACIFIC BULK ENTERPRISES COMPANY LIMITED

6th Defendant

PACIFIC BULK PANAMAX COMPANY LIMITED

7th Defendant

PACIFIC BULK SUPRAMAX COMPANY LIMITED

8th Defendant

PROFIT FAR LIMITED (also known as 益遠有限公司)

9th Defendant

PACIFIC BULK SHIPPING LIMITED

10th Defendant

CHU KONG (朱江)

1st Defendant (by Counterclaim)

Procedural Posture

Interlocutory Application for Preservation and Inspection of Documents in Civil Company/shareholder Litigation / Interlocutory — Decision on Summons in Chambers; Preservation Ordered, Inspection Reserved

Legal Issues

  1. 1 Whether court should order preservation and identification of documents removed unilaterally by a party
  2. 2 Whether inspection should be ordered under Order 29 r 2 or Order 24 r 10 and the relevance of Order 24 r 7 affirmations
  3. 3 Whether reciprocal orders should be made and whether inspection is premature

Ratio Decidendi

Preservation and identification of the removed documents is necessary and appropriately ordered under Order 29 r 2; an independent solicitors' firm is to be appointed to identify and copy documents, with originals returned and copies retained in escrow; inspection is premature and is reserved pending identification and, where relevant, Order 24 r 7 affirmations and resolution of privilege objections; reciprocal O24 r7 affirmations are ordered for specified entities.

Court Disposition

Interlocutory orders made: preservation and identification ordered under Order 29 r 2; appointment of independent solicitors to identify and copy documents; inspection reserved pending identification and O24 r7 affirmations; reciprocal O24 r7 affirmations ordered for specified companies; costs reserved.

Orders

  • Parties to jointly appoint independent third party firm of solicitors within specified time or firm to be nominated by President of the Law Society if they cannot agree
  • Mr Lau to provide to the Firm all documents in his possession, custody or power belonging to the listed Companies within 14 days of appointment; Mr Chu to do likewise