THE YERRID LAW FIRM v. QIANSBAIZI TRADING LTD AND ANOTHER

THE YERRID LAW FIRM v. QIANSBAIZI TRADING LTD AND ANOTHER

D2 failed to show a defence with a reasonable prospect of success because the US$200,000 was received as a result of an unlawful arrangement whereby a money service operator (Wanyuen) used an account without evidence of required notification/approval under Cap.615; where receipt stems from such illegality the defences of change of position/ministerial receipt are not available, therefore the default judgment and garnishee order stand.

Citation
[2021] HKCFI 620
Parties
Plaintiff (judgment Creditor): THE YERRID LAW FIRM; 1st Defendant: qiansbaizi trading limited; 2nd Defendant (judgment Debtor): tin tat TRADING co., limited; Garnishee: china citic bank international limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 March 2021
Case Number
HCA2271/2019
Procedural Posture
Civil Enforcement and Restitution (garnishee Proceedings; Application to Set Aside Default Judgment) / Appeal to Judge From Master in Chambers (de Novo Hearing)
Outcome
Appeal dismissed; Master's decision upheld; default judgment and garnishee order maintained; stay of execution lifted
Legal Topics
Set Aside Default Judgment, Garnishee Order, Money Had and Received, Constructive Trust, Ministerial Receipt, Change of Position, Illegality Defence, Customer Due Diligence, Money Service Operator Licensing (cap.615)
Source Language
EN
Civil Procedure Restitution Unjust Enrichment Banking Law Anti Money Laundering Regulation Set Aside Default Judgment Garnishee Order Money Had and Received +6 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 9 Party arguments 2
Sign in to unlock

Parties

THE YERRID LAW FIRM

Plaintiff (judgment Creditor)

qiansbaizi trading limited

1st Defendant

tin tat TRADING co., limited

2nd Defendant (judgment Debtor)

china citic bank international limited

Garnishee

Procedural Posture

Civil Enforcement and Restitution (garnishee Proceedings; Application to Set Aside Default Judgment) / Appeal to Judge From Master in Chambers (de Novo Hearing)

Legal Issues

  1. 1 Whether the 2nd defendant has a defence with a real prospect of success that it was a mere receiving agent and not liable for US$200,000
  2. 2 Whether defences of change of position, ministerial receipt or bona fide purchaser for value without notice are available where receipt arose from alleged illegality under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap.615)
  3. 3 Whether the default judgment and garnishee order should be set aside

Ratio Decidendi

D2 failed to show a defence with a reasonable prospect of success because the US$200,000 was received as a result of an unlawful arrangement whereby a money service operator (Wanyuen) used an account without evidence of required notification/approval under Cap.615; where receipt stems from such illegality the defences of change of position/ministerial receipt are not available, therefore the default judgment and garnishee order stand.

Court Disposition

Appeal dismissed; Master's decision upheld; default judgment and garnishee order maintained; stay of execution lifted

Orders

  • Appeal dismissed with costs to be taxed if not agreed
  • Stay of execution of the garnishee order lifted