LEE CHI KEUNG AND OTHERS v. WONG CHI CHIN AND OTHERS

LEE CHI KEUNG AND OTHERS v. WONG CHI CHIN AND OTHERS

Although the court found there was a serious issue to be tried on the plaintiffs' trust claim, the applications for preservation order, proprietary injunction, interim preservation of company assets and ancillary discovery were dismissed because (a) plaintiffs delayed in adducing expert reports and those reports were refused; (b) damages were an adequate remedy given substantial net equity in the properties and no demonstrated inability of defendants to satisfy judgment; (c) many discovery requests failed Order 24 r.10 requirement of direct allusion to documents or were outside defendants' possession; and (d) defendants' and plaintiffs' applications to adduce further evidence were refused...

Citation
[2022] HKCFI 3315
Parties
1st Plaintiff (hca1878/2020; Hca1879/2020; Hca1880/2020): Lee Chi Keung; 2nd Plaintiff (hca1878/2020; Hca1879/2020; Hca1880/2020): Chan Shing; 1st Plaintiff (hca1881/2020): Lit Hei King; 1st Defendant (hca1878/2020; Hca1879/2020; Hca1880/2020): Wong Chi Chin; 2nd Defendant (hca1878/2020; Hca1879/2020; Hca1880/2020) and 1st Defendant (hca1881/2020): Tse Shuk Fong; 3rd Defendant (company) Subject of Hca1878/2020: Max Dragon International Investment Limited; 3rd Defendant (company) Subject of Hca1879/2020: Lucky Honest International Limited; 3rd Defendant (company) Subject of Hca1880/2020: Mega Dragon International Investment Limited; 3rd Defendant (company) Subject of Hca1881/2020: Wisdom Well Investment Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 November 2022
Case Number
HCA1880/2020
Procedural Posture
Civil Company/shareholder Disputes With Interlocutory Relief Applications / Interlocutory Hearing on Summonses (preservation Order, Proprietary Injunction, Interim Orders, Discovery, Leave to Adduce Further Evidence)
Outcome
All summonses dismissed. Plaintiffs' applications for preservation order, proprietary injunction, interim company‑asset preservation, account and discovery were dismissed. Plaintiffs' application to admit late expert reports dismissed. Defendants' applications to file further evidence dismissed. Costs ordered in...
Legal Topics
Preservation Order, Proprietary Injunction, Constructive and Resulting Trust, Admissibility of Expert Evidence, Order 24 Discovery, American Cyanamid Principles, Fund Tracing
Source Language
EN
Company Law Trusts and Equitable Remedies Civil Procedure Property Law Injunctions Evidence Law Discovery Preservation Order +6 more

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Parties

Lee Chi Keung

1st Plaintiff (hca1878/2020; Hca1879/2020; Hca1880/2020)

Chan Shing

2nd Plaintiff (hca1878/2020; Hca1879/2020; Hca1880/2020)

Lit Hei King

1st Plaintiff (hca1881/2020)

Wong Chi Chin

1st Defendant (hca1878/2020; Hca1879/2020; Hca1880/2020)

Tse Shuk Fong

2nd Defendant (hca1878/2020; Hca1879/2020; Hca1880/2020) and 1st Defendant (hca1881/2020)

Max Dragon International Investment Limited

3rd Defendant (company) Subject of Hca1878/2020

Lucky Honest International Limited

3rd Defendant (company) Subject of Hca1879/2020

Mega Dragon International Investment Limited

3rd Defendant (company) Subject of Hca1880/2020

Wisdom Well Investment Limited

3rd Defendant (company) Subject of Hca1881/2020

Procedural Posture

Civil Company/shareholder Disputes With Interlocutory Relief Applications / Interlocutory Hearing on Summonses (preservation Order, Proprietary Injunction, Interim Orders, Discovery, Leave to Adduce Further Evidence)

Legal Issues

  1. 1 Whether a preservation order (payment into court or security) should be granted over rental income
  2. 2 Whether a proprietary injunction restraining dealing with rental income should be granted
  3. 3 Whether the plaintiffs have a proprietary interest in company-held property (constructive/resulting trust)

Ratio Decidendi

Although the court found there was a serious issue to be tried on the plaintiffs' trust claim, the applications for preservation order, proprietary injunction, interim preservation of company assets and ancillary discovery were dismissed because (a) plaintiffs delayed in adducing expert reports and those reports were refused; (b) damages were an adequate remedy given substantial net equity in the properties and no demonstrated inability of defendants to satisfy judgment; (c) many discovery requests failed Order 24 r.10 requirement of direct allusion to documents or were outside defendants' possession; and (d) defendants' and plaintiffs' applications to adduce further evidence were refused...

Court Disposition

All summonses dismissed. Plaintiffs' applications for preservation order, proprietary injunction, interim company‑asset preservation, account and discovery were dismissed. Plaintiffs' application to admit late expert reports dismissed. Defendants' applications to file further evidence dismissed. Costs ordered in...

Orders

  • Summonses dismissed in all respects
  • Plaintiffs shall bear the defendants' costs of the summonses (costs to be taxed if not agreed)