A AND B, AS THE ADMINISTRATORS AND TRUSTEES OF THE ESTATE OF THE DECEASED v. C AND OTHERS

A AND B, AS THE ADMINISTRATORS AND TRUSTEES OF THE ESTATE OF THE DECEASED v. C AND OTHERS

The court has jurisdiction to make an in personam vesting order against former executrices in respect of foreign assets which they hold qua executrices; the Former Executrices had possession/registration of the YL shares and are accountable to the Estate; making the vesting order does not improperly pre-empt the SPC retrial given the uncertainty of outcome and the practical need to secure estate assets; the joinder/replacement applications are reasonably arguable under PRC law (Article 249) and the Administrators acted without undue delay; it is in the interests of the estate to grant Beddoe indemnities to allow either the Administrators to apply to the SPC or, failing that, to procure...

Citation
[2020] HKCFI 2628
Parties
Administrators and Trustees of the Estate (plaintiffs): A and B; 1st Defendant; Residuary Beneficiary; Opposing Beneficiary: C; 2nd Defendant; Residuary Beneficiary; Opposing Beneficiary: D; 3rd Defendant; Residuary Beneficiary; Opposing Beneficiary: E; 4th Defendant; Residuary Beneficiary; Opposing Beneficiary: F; 5th Defendant; Former Executrix; Residuary Beneficiary: W; 6th Defendant; Former Executrix; Residuary Beneficiary: X; 7th Defendant; Former Executrix; Former Secretary and Personal Assistant to the Deceased (not a Residuary Beneficiary): Y; 8th Defendant; Former Executrix; Residuary Beneficiary; Unrepresented at Hearing: Z
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 October 2020
Case Number
HCMP1260/2020
Procedural Posture
Probate and Administration — Application for Vesting Order and Beddoe Orders / Interlocutory/chambers Hearing and Decision on Originating Summons (vesting and Beddoe Applications)
Outcome
Application allowed in part and interlocutory orders granted
Legal Topics
Vesting Order (in Personam), Beddoe Order (indemnity for Costs), Removal of Executors/administrators, Joinder/replacement in Foreign Proceedings (prc), Lex Situs and Foreign Assets, Indemnity for Costs
Source Language
EN
Probate and Administration Trusts Civil Procedure Conflict of Laws International/prc Litigation Vesting Order (in Personam) Beddoe Order (indemnity for Costs) Removal of Executors/administrators +3 more

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Parties

A and B

Administrators and Trustees of the Estate (plaintiffs)

C

1st Defendant; Residuary Beneficiary; Opposing Beneficiary

D

2nd Defendant; Residuary Beneficiary; Opposing Beneficiary

E

3rd Defendant; Residuary Beneficiary; Opposing Beneficiary

F

4th Defendant; Residuary Beneficiary; Opposing Beneficiary

W

5th Defendant; Former Executrix; Residuary Beneficiary

X

6th Defendant; Former Executrix; Residuary Beneficiary

Y

7th Defendant; Former Executrix; Former Secretary and Personal Assistant to the Deceased (not a Residuary Beneficiary)

Z

8th Defendant; Former Executrix; Residuary Beneficiary; Unrepresented at Hearing

Procedural Posture

Probate and Administration — Application for Vesting Order and Beddoe Orders / Interlocutory/chambers Hearing and Decision on Originating Summons (vesting and Beddoe Applications)

Legal Issues

  1. 1 Whether the Hong Kong court can make an in personam vesting order in respect of foreign assets held by former executrices during administration of the estate
  2. 2 Whether the court should exercise its discretion to make such a vesting order pending a retrial by the PRC Supreme People’s Court
  3. 3 Whether Beddoe orders should be granted to indemnify costs and permit the Administrators to apply to the SPC to replace or join as transferee or, failing that, to procure the Former Executrices to continue participation to protect estate interests

Ratio Decidendi

The court has jurisdiction to make an in personam vesting order against former executrices in respect of foreign assets which they hold qua executrices; the Former Executrices had possession/registration of the YL shares and are accountable to the Estate; making the vesting order does not improperly pre-empt the SPC retrial given the uncertainty of outcome and the practical need to secure estate assets; the joinder/replacement applications are reasonably arguable under PRC law (Article 249) and the Administrators acted without undue delay; it is in the interests of the estate to grant Beddoe indemnities to allow either the Administrators to apply to the SPC or, failing that, to procure...

Court Disposition

Application allowed in part and interlocutory orders granted

Orders

  • Vesting order granted: all assets and monies of the Estate (including 80% YL shares then registered in names of Former Executrices) to be vested in the Administrators by in personam order against the Former Executrices
  • Beddoe orders granted: Administrators authorised to apply to the SPC to replace the Former Executrices or, alternatively, to seek joinder as transferees; in the event replacement application fails Administrators may procure Former Executrices to continue participation in SPC Proceedings to secure YL shares for the...