CHAN WAI LUNG v. LEE SHU YEN AND ANOTHER

CHAN WAI LUNG v. LEE SHU YEN AND ANOTHER

Because the defendants wilfully failed to comply with prior orders including an unless order and were debarred from defending, the court struck out their defence and entered judgment in default: awarding damages of US$1,759,288, declaring the sums transferred into D2's account to be held by D2 on constructive trust for the plaintiff, granting a disclosure order against specified third parties to trace released account balances, awarding interest and indemnity costs, and permitting enforcement steps to protect the plaintiff's proprietary and personal remedies.

Citation
[2025] HKCFI 2406
Parties
Plaintiff: Chan Wai Lung; 1st Defendant: Lee Shu Yen; 2nd Defendant: Novo Digital Company Limited; Third Party (spouse of 1st Defendant): Li Ki Ki; Third Party (bank): HSBC (Hong Kong); Third Party (bank): Standard Chartered Bank; Third Party (bank): DBS Bank (Hong Kong)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 June 2025
Case Number
HCA736/2022
Procedural Posture
Civil Fraud, Conspiracy, Proprietary Claims and Disclosure / Hearing on Default Judgment and Third Party Disclosure
Outcome
Judgment entered in default against 1st and 2nd Defendants; Defence struck out; declaratory and disclosure relief granted; indemnity costs awarded.
Legal Topics
Default Judgment, Constructive Trust, Unlawful Means Conspiracy, Declaratory Relief, Disclosure Orders to Locate Assets, Indemnity Costs, Contempt for Non Compliance With Court Orders
Source Language
EN
Civil Procedure Fraud Equity (constructive Trust) Unjust Enrichment Disclosure/third Party Orders Costs Default Judgment Constructive Trust +5 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 6 Authorities cited 5 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Chan Wai Lung

Plaintiff

Lee Shu Yen

1st Defendant

Novo Digital Company Limited

2nd Defendant

Li Ki Ki

Third Party (spouse of 1st Defendant)

HSBC (Hong Kong)

Third Party (bank)

Standard Chartered Bank

Third Party (bank)

DBS Bank (Hong Kong)

Third Party (bank)

Procedural Posture

Civil Fraud, Conspiracy, Proprietary Claims and Disclosure / Hearing on Default Judgment and Third Party Disclosure

Legal Issues

  1. 1 Whether the defendants' failure to comply with court orders and an unless order justified striking out the defence and entry of judgment in default
  2. 2 Whether plaintiff established deceit and/or unlawful means conspiracy entitling him to damages
  3. 3 Whether funds received by D2 are held on constructive trust for the plaintiff

Ratio Decidendi

Because the defendants wilfully failed to comply with prior orders including an unless order and were debarred from defending, the court struck out their defence and entered judgment in default: awarding damages of US$1,759,288, declaring the sums transferred into D2's account to be held by D2 on constructive trust for the plaintiff, granting a disclosure order against specified third parties to trace released account balances, awarding interest and indemnity costs, and permitting enforcement steps to protect the plaintiff's proprietary and personal remedies.

Court Disposition

Judgment entered in default against 1st and 2nd Defendants; Defence struck out; declaratory and disclosure relief granted; indemnity costs awarded.

Orders

  • Defence dated 7 December 2022 struck out and defendants debarred from defending for failure to comply with court orders
  • Judgment for plaintiff in the sum of US$1,759,288