CHEN YUNG NGAI KENNETH AND ANOTHER v. HUGILL & IP (A Firm) AND ANOTHER

CHEN YUNG NGAI KENNETH AND ANOTHER v. HUGILL & IP (A Firm) AND ANOTHER

The trustees demonstrated reasonable suspicion that the requested documents relate to the bankrupt and are necessary for the trustees to perform their functions; the 971 Judgment expressly found the corporate defendants were nominees of the bankrupt such that the trustees step into their shoes and may require production; therefore LPP cannot be successfully asserted against the trustees in respect of those nominees and the respondents must produce specified documents and provide specified affidavits within 28 days; costs limited to reasonable photocopying to be paid from the estate and no personal costs order against the trustees.

Citation
[2023] HKCFI 151
Parties
Applicant (trustee in Bankruptcy): Chen Yung Ngai Kenneth; Applicant (trustee in Bankruptcy): Chen Mei Mei; 1st Respondent: Hugill & Ip (A Firm); 2nd Respondent: Oldham, Li & Nie (A Firm)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 January 2023
Case Number
HCB3819/2011
Procedural Posture
Bankruptcy (trustee's Section 29 Application) / Decision on Summons (judgment)
Outcome
Order granted in part for production and affidavits; trustees to bear reasonable photocopying costs from the estate; application for personal costs by OLN refused; liberty to apply for costs under rule 87C
Legal Topics
Section 29 Bankruptcy Ordinance Disclosure, Legal Professional Privilege (advice and Litigation), Production of Documents and Redaction, Nominee Findings and Trustees Stepping Into Shoes, Costs Allocation for Production by Former Solicitors
Source Language
EN
Bankruptcy Civil Procedure Legal Professional Privilege Corporate/nominee Arrangements Costs Section 29 Bankruptcy Ordinance Disclosure Legal Professional Privilege (advice and Litigation) Production of Documents and Redaction +2 more

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Parties

Chen Yung Ngai Kenneth

Applicant (trustee in Bankruptcy)

Chen Mei Mei

Applicant (trustee in Bankruptcy)

Hugill & Ip (A Firm)

1st Respondent

Oldham, Li & Nie (A Firm)

2nd Respondent

Procedural Posture

Bankruptcy (trustee's Section 29 Application) / Decision on Summons (judgment)

Legal Issues

  1. 1 Whether the documents sought relate to the bankrupt, his dealings or property and are reasonably required by the trustees under s.29 BO
  2. 2 Whether legal professional privilege (LPP) applies to the documents and if it can be asserted against the trustees given the 971 Judgment
  3. 3 Whether respondents are able and must produce the documents and provide affidavits

Ratio Decidendi

The trustees demonstrated reasonable suspicion that the requested documents relate to the bankrupt and are necessary for the trustees to perform their functions; the 971 Judgment expressly found the corporate defendants were nominees of the bankrupt such that the trustees step into their shoes and may require production; therefore LPP cannot be successfully asserted against the trustees in respect of those nominees and the respondents must produce specified documents and provide specified affidavits within 28 days; costs limited to reasonable photocopying to be paid from the estate and no personal costs order against the trustees.

Court Disposition

Order granted in part for production and affidavits; trustees to bear reasonable photocopying costs from the estate; application for personal costs by OLN refused; liberty to apply for costs under rule 87C

Orders

  • Respondents to disclose within 28 days copies of all details of payments made to each Respondent for the legal proceedings in HCA 971/2012
  • Respondents to disclose all bills, receipts, correspondence, counsel fee notes, invoices, cheques, bank drafts, cashier orders, online transfer records and other payment records and supporting wiring instructions and communications in respect of such payments relating to the 971 Action