JBPB & CO. v. FONG CHUNG, MARK AND OTHERS

JBPB & CO. v. FONG CHUNG, MARK AND OTHERS

The perfected consent orders could not be set aside in these chambers applications because the court is functus officio as to perfected consent orders and the appropriate remedy to impeach such orders is a fresh action; alternatively, even if jurisdiction existed, the court would not exercise it pending final determination of the internal partnership dispute; accordingly the applications to declare the consent orders null and void and to restore the actions were dismissed.

Citation
JBPB & CO. v. FONG CHUNG, MARK AND OTHERS
Parties
1st Plaintiff (hca1126/2010 & Hca735/2010): Moores Rowland (a Firm); 2nd Plaintiff (hca1126/2010 & Hca735/2010): United Secretaries Limited; 1st Defendant (hca1126/2010 & Hca735/2010): Grant Thornton (a Firm); 2nd Defendant (hca1126/2010 & Hca735/2010): Gabriel Ricardo Dias-Azedo; 3rd Defendant (hca1126/2010 & Hca735/2010): Jonathan Russell Leong; 4th Defendant (hca1126/2010 & Hca735/2010): Tang Chung Wah (aka Alan); 5th Defendant (hca1126/2010 & Hca735/2010): Chow Tak Ming, Paul; 6th Defendant (hca1126/2010 & Hca735/2010): Yuen Kwok Keung (aka Desmond); 7th Defendant (hca1126/2010 & Hca735/2010): Chiu Wing Cheung, Ringo; 8th Defendant (hca1126/2010 & Hca735/2010): Lam Hung Yun, Andrew; 9th Defendant (hca1126/2010 & Hca735/2010): Gary Terence James; 10th Defendant (hca1126/2010 & Hca735/2010): Lee Fung Ying, Alison; 11th Defendant (hca1126/2010 & Hca735/2010): Lo Ngai Hang (aka Tony); 12th Defendant (hca1126/2010 & Hca735/2010): Au Yiu Kwan (aka Alvin); 13th Defendant (hca1126/2010 & Hca735/2010): Patrick Rozario; 14th Defendant (hca1126/2010 & Hca735/2010): Li Wing Yin (aka Amos); 15th Defendant (hca1126/2010 & Hca735/2010): Tsui Ka Che, Norman; Plaintiff (hca1873/2010); Respondent (hcmp1284/2011): JBPB & CO. (formerly known as Grant Thornton); 1st Defendant (hca1873/2010): Fong Chung, Mark; 2nd Defendant (hca1873/2010): Lin Ching Yee, Daniel; 3rd Defendant (hca1873/2010): Sim Kon Fah; 4th Defendant (hca1873/2010): Ding Wai Chuen; 5th Defendant (hca1873/2010): Kwong Kam Wing, Kelvin; 6th Defendant (hca1873/2010): Chiu Wing Ning, Calvin; Claimant (hcmp1284/2011): Grant Thornton International Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 June 2012
Case Number
HCA1873/2010
Procedural Posture
Consolidated Civil Applications Arising From Partnership Dispute and Related Litigations / Chambers Decision on Interlocutory Summonses and Applications to Set Aside Consent Orders (decision Dated 8 June 2012)
Outcome
Subject Applications dismissed
Legal Topics
Authority of Partners, Consent Orders, Functus Officio, Res Judicata/issue Estoppel, Abuse of Process, Settlement Deeds, Indemnity for Costs, Jurisdiction to Set Aside Orders
Source Language
EN
Partnership Law Civil Procedure Arbitration Law Injunctions Costs Authority of Partners Consent Orders Functus Officio +5 more

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Parties

Moores Rowland (a Firm)

1st Plaintiff (hca1126/2010 & Hca735/2010)

United Secretaries Limited

2nd Plaintiff (hca1126/2010 & Hca735/2010)

Grant Thornton (a Firm)

1st Defendant (hca1126/2010 & Hca735/2010)

Gabriel Ricardo Dias-Azedo

2nd Defendant (hca1126/2010 & Hca735/2010)

Jonathan Russell Leong

3rd Defendant (hca1126/2010 & Hca735/2010)

Tang Chung Wah (aka Alan)

4th Defendant (hca1126/2010 & Hca735/2010)

Chow Tak Ming, Paul

5th Defendant (hca1126/2010 & Hca735/2010)

Yuen Kwok Keung (aka Desmond)

6th Defendant (hca1126/2010 & Hca735/2010)

Chiu Wing Cheung, Ringo

7th Defendant (hca1126/2010 & Hca735/2010)

Lam Hung Yun, Andrew

8th Defendant (hca1126/2010 & Hca735/2010)

Gary Terence James

9th Defendant (hca1126/2010 & Hca735/2010)

Lee Fung Ying, Alison

10th Defendant (hca1126/2010 & Hca735/2010)

Lo Ngai Hang (aka Tony)

11th Defendant (hca1126/2010 & Hca735/2010)

Au Yiu Kwan (aka Alvin)

12th Defendant (hca1126/2010 & Hca735/2010)

Patrick Rozario

13th Defendant (hca1126/2010 & Hca735/2010)

Li Wing Yin (aka Amos)

14th Defendant (hca1126/2010 & Hca735/2010)

Tsui Ka Che, Norman

15th Defendant (hca1126/2010 & Hca735/2010)

JBPB & CO. (formerly known as Grant Thornton)

Plaintiff (hca1873/2010); Respondent (hcmp1284/2011)

Fong Chung, Mark

1st Defendant (hca1873/2010)

Lin Ching Yee, Daniel

2nd Defendant (hca1873/2010)

Sim Kon Fah

3rd Defendant (hca1873/2010)

Ding Wai Chuen

4th Defendant (hca1873/2010)

Kwong Kam Wing, Kelvin

5th Defendant (hca1873/2010)

Chiu Wing Ning, Calvin

6th Defendant (hca1873/2010)

Grant Thornton International Limited

Claimant (hcmp1284/2011)

Procedural Posture

Consolidated Civil Applications Arising From Partnership Dispute and Related Litigations / Chambers Decision on Interlocutory Summonses and Applications to Set Aside Consent Orders (decision Dated 8 June 2012)

Legal Issues

  1. 1 Whether the court has jurisdiction to set aside perfected consent orders
  2. 2 Whether solicitors (Hart Giles) had authority to act for the firm/minority partners in entering consent orders
  3. 3 Whether majority partners validly authorised the Settlement Deed under the Partnership Deed and Termination Agreement

Ratio Decidendi

The perfected consent orders could not be set aside in these chambers applications because the court is functus officio as to perfected consent orders and the appropriate remedy to impeach such orders is a fresh action; alternatively, even if jurisdiction existed, the court would not exercise it pending final determination of the internal partnership dispute; accordingly the applications to declare the consent orders null and void and to restore the actions were dismissed.

Court Disposition

Subject Applications dismissed

Orders

  • Subject Applications dismissed
  • Order nisi that the minority partners pay the costs of the Subject Applications to all other parties involved in the three actions; such order to be made absolute 14 days after the date of this decision