NOBLE SPIRIT LTD t/a LIFE SOLUTIONS v. WONG SHU YUEN also known as GARRY WONG AND ANOTHER

NOBLE SPIRIT LTD t/a LIFE SOLUTIONS v. WONG SHU YUEN also known as GARRY WONG AND ANOTHER

Breach of fiduciary duties in the employment context is not a cause of action founded in tort but an equitable/contractual matter; Mind Body's claims (damages for breach of contract and for breach of duties as an employee) therefore fall within paragraph 1 of the Schedule to the Labour Tribunal Ordinance as claims for a sum of money arising from breach of terms of a contract of employment; the injunctive relief claimed is expired/window dressing and does not prevent exclusive jurisdiction of the Labour Tribunal; accordingly the High Court lacks jurisdiction and Mind Body's action against Lee is struck out.

Citation
NOBLE SPIRIT LTD t/a LIFE SOLUTIONS v. WONG SHU YUEN also known as GARRY WONG AND ANOTHER
Parties
Plaintiff (original Action): Noble Spirit Limited trading as Life Solutions; 1st Defendant (original Action): Wong Shu Yuen also known as Garry Wong; 2nd Defendant (original Action); Plaintiff (counterclaim): Mind Body (Asia) Limited; 1st Defendant (counterclaim): Noble Spirit Limited trading as Life Solutions; 2nd Defendant (counterclaim): Blake Timothy Lawrence Ireland also known as Blake Ireland; 3rd Defendant (counterclaim): Chan Yiu Ming also known as Ivan Chan; 4th Defendant (counterclaim) / Applicant to Strike Out: Lee Siu Hung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 May 2013
Case Number
HCA842/2011
Procedural Posture
High Court (court of First Instance) Civil Action and Counterclaim Concerning Employment/contractual and Equitable Claims / Application in Chambers to Strike Out Counterclaim for Want of Jurisdiction (labour Tribunal Jurisdiction Point)
Outcome
Applicant (Lee) allowed. Mind Body's action against Lee struck out for want of jurisdiction.
Legal Topics
Restraint of Trade, Fiduciary Duties, Jurisdiction of Labour Tribunal, Breach of Contract, Injunctions, Breach of Confidence (referenced)
Source Language
EN
Employment Law Equity Contract Law Civil Procedure Labour Law Restraint of Trade Fiduciary Duties Jurisdiction of Labour Tribunal +3 more

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Parties

Noble Spirit Limited trading as Life Solutions

Plaintiff (original Action)

Wong Shu Yuen also known as Garry Wong

1st Defendant (original Action)

Mind Body (Asia) Limited

2nd Defendant (original Action); Plaintiff (counterclaim)

Noble Spirit Limited trading as Life Solutions

1st Defendant (counterclaim)

Blake Timothy Lawrence Ireland also known as Blake Ireland

2nd Defendant (counterclaim)

Chan Yiu Ming also known as Ivan Chan

3rd Defendant (counterclaim)

Lee Siu Hung

4th Defendant (counterclaim) / Applicant to Strike Out

Procedural Posture

High Court (court of First Instance) Civil Action and Counterclaim Concerning Employment/contractual and Equitable Claims / Application in Chambers to Strike Out Counterclaim for Want of Jurisdiction (labour Tribunal Jurisdiction Point)

Legal Issues

  1. 1 Whether the High Court has jurisdiction to hear the counterclaim against Lee or whether exclusive jurisdiction lies with the Labour Tribunal under the LTO
  2. 2 Whether a claim for breach of fiduciary duties is a cause of action founded in tort and thus excluded from the Labour Tribunal's jurisdiction under paragraph 3 of the Schedule to the LTO
  3. 3 Whether Mind Body's injunctive relief is substantive or merely 'window dressing' to retain High Court jurisdiction

Ratio Decidendi

Breach of fiduciary duties in the employment context is not a cause of action founded in tort but an equitable/contractual matter; Mind Body's claims (damages for breach of contract and for breach of duties as an employee) therefore fall within paragraph 1 of the Schedule to the Labour Tribunal Ordinance as claims for a sum of money arising from breach of terms of a contract of employment; the injunctive relief claimed is expired/window dressing and does not prevent exclusive jurisdiction of the Labour Tribunal; accordingly the High Court lacks jurisdiction and Mind Body's action against Lee is struck out.

Court Disposition

Applicant (Lee) allowed. Mind Body's action against Lee struck out for want of jurisdiction.

Orders

  • The action made by Mind Body (plaintiff by counterclaim) against Lee be struck out for want of jurisdiction
  • Costs order nisi: Mind Body to pay Lee the costs of the action including the costs of the striking out application with certificate for counsel to be taxed if not agreed; Lee's own costs to be taxed in accordance with the Legal Aid Regulations