TUENBO CO LTD v. CHEUNG SUNG LAM AND OTHERS

TUENBO CO LTD v. CHEUNG SUNG LAM AND OTHERS

DHCJ Au‑Yeung held that the Authority Issue in HCA 566/2019 had been finally determined by DHCJ Stock SC on the strike-out summons and it would be an abuse of process to re‑open that issue; accordingly the Court refused to order a preliminary issue or consolidation, but ordered a stay of HCA 566/2019 pending resolution of HCA 2095/2016, with findings in HCA 2095/2016 to bind HCA 566/2019 and liberty to apply.

Citation
[2022] HKCFI 3251
Parties
Plaintiff in HCA 2095/2016: Steadfast International Limited; 1st Defendant in HCA 2095/2016; Plaintiff in HCA 566/2019 (tcl): Tuenbo Company Limited; 2nd Defendant in HCA 2095/2016; 1st Defendant in HCA 566/2019: Cheung Sung Lam; 3rd Defendant in HCA 2095/2016; 2nd Defendant in HCA 566/2019: Wong Sung King Dorothy; 4th Defendant in HCA 2095/2016: Tuenbo (Holdings) Company Limited; 5th Defendant in HCA 2095/2016: Cheung Wai Kwan; 6th Defendant in HCA 2095/2016: Ideal Win Company Limited; 7th Defendant in HCA 2095/2016; 3rd Defendant in HCA 566/2019: Cheung Ka Ming; 4th Defendant in HCA 566/2019: Utahloy Management Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 October 2022
Case Number
HCA566/2019
Procedural Posture
Commercial Company/share Charge Dispute (two Related High Court Actions) / Interlocutory/chambers Decision on Summonses for Directions (pre Trial)
Outcome
Partial relief to Tuenbo Parties by stay granted; other reliefs refused
Legal Topics
Authority to Sue, Abuse of Process, Stay of Proceedings, Preliminary Issue Trial, Strike Out Proceedings, Share Charge Enforcement, Equity of Redemption, Case Management
Source Language
EN
Company Law Civil Procedure Equity and Trusts Commercial Law Injunctions Civil Litigation Management Authority to Sue Abuse of Process +6 more

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Parties

Steadfast International Limited

Plaintiff in HCA 2095/2016

Tuenbo Company Limited

1st Defendant in HCA 2095/2016; Plaintiff in HCA 566/2019 (tcl)

Cheung Sung Lam

2nd Defendant in HCA 2095/2016; 1st Defendant in HCA 566/2019

Wong Sung King Dorothy

3rd Defendant in HCA 2095/2016; 2nd Defendant in HCA 566/2019

Tuenbo (Holdings) Company Limited

4th Defendant in HCA 2095/2016

Cheung Wai Kwan

5th Defendant in HCA 2095/2016

Ideal Win Company Limited

6th Defendant in HCA 2095/2016

Cheung Ka Ming

7th Defendant in HCA 2095/2016; 3rd Defendant in HCA 566/2019

Utahloy Management Company Limited

4th Defendant in HCA 566/2019

Procedural Posture

Commercial Company/share Charge Dispute (two Related High Court Actions) / Interlocutory/chambers Decision on Summonses for Directions (pre Trial)

Legal Issues

  1. 1 Whether the Authority Issue (TCL's authority to sue) may be re‑litigated in HCA 566/2019 after dismissal of the strike-out application by DHCJ Stock SC
  2. 2 Whether HCA 566/2019 should be stayed pending determination of HCA 2095/2016
  3. 3 Whether the Authority Issue should be determined as a preliminary issue and tried together with HCA 2095/2016

Ratio Decidendi

DHCJ Au‑Yeung held that the Authority Issue in HCA 566/2019 had been finally determined by DHCJ Stock SC on the strike-out summons and it would be an abuse of process to re‑open that issue; accordingly the Court refused to order a preliminary issue or consolidation, but ordered a stay of HCA 566/2019 pending resolution of HCA 2095/2016, with findings in HCA 2095/2016 to bind HCA 566/2019 and liberty to apply.

Court Disposition

Partial relief to Tuenbo Parties by stay granted; other reliefs refused

Orders

  • Leave to amend the Summonses dated 17 May 2021 as per the Summonses dated 12 April 2022
  • All further proceedings in HCA 566/2019 stayed pending resolution of HCA 2095/2016