FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG

FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG

The summons for specific discovery was dismissed because the applicant failed to plead sufficient particulars to define and limit the scope of the documents sought; the requested audited financial statements and accounting summaries were overbroad and not shown to be relevant to the disputed issues given multiple businesses operated by the respondent; affirmations of non-possession were unchallenged and there was no basis to order further discovery; the application was disproportionate to procedural economy and fairness, therefore refused.

Citation
FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG
Parties
Plaintiff (original Action); 1st Defendant (counterclaim): FOK HING INTERNATIONAL COMPANY LIMITED; Defendant (original Action); Plaintiff (counterclaim): LIU HSIAO CHENG; 2nd Defendant (counterclaim): WONG SHU WAI
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 July 2017
Case Number
HCA97/2013
Procedural Posture
Civil Action for Repayment and Counterclaim Alleging Joint Venture Profits; Interlocutory Discovery Application / Interlocutory Application for Specific Discovery Under O.24 R.7 RHC Prior to Trial
Outcome
Summons dismissed
Legal Topics
Specific Discovery, Fiduciary Duties, Accounting and Accounts of Profit, Loan Versus Prepayment, Pleadings and Particulars, Costs Assessment
Source Language
EN
Civil Procedure Equity Partnership and Joint Venture Law Contract Discovery and Disclosure Specific Discovery Fiduciary Duties Accounting and Accounts of Profit +3 more

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Parties

FOK HING INTERNATIONAL COMPANY LIMITED

Plaintiff (original Action); 1st Defendant (counterclaim)

LIU HSIAO CHENG

Defendant (original Action); Plaintiff (counterclaim)

WONG SHU WAI

2nd Defendant (counterclaim)

Procedural Posture

Civil Action for Repayment and Counterclaim Alleging Joint Venture Profits; Interlocutory Discovery Application / Interlocutory Application for Specific Discovery Under O.24 R.7 RHC Prior to Trial

Legal Issues

  1. 1 Whether a joint venture agreement existed between Liu and Wong and its terms
  2. 2 Whether the HK$1,000,000 payment was a loan or a prepayment of profits
  3. 3 Whether documents of Fok Hing (including audited financial statements and internal accounting summaries) are relevant and reasonably required and thus discoverable

Ratio Decidendi

The summons for specific discovery was dismissed because the applicant failed to plead sufficient particulars to define and limit the scope of the documents sought; the requested audited financial statements and accounting summaries were overbroad and not shown to be relevant to the disputed issues given multiple businesses operated by the respondent; affirmations of non-possession were unchallenged and there was no basis to order further discovery; the application was disproportionate to procedural economy and fairness, therefore refused.

Court Disposition

Summons dismissed

Orders

  • D's summons dismissed
  • Costs assessed at HK$140,000 to be paid by Liu Hsiao Cheng to Fok Hing International Company Limited within 14 days