STANDARD CHARTERED BANK (HONG KONG) LTD v. EASE KEEN INTERNATIONAL LTD AND OTHERS

STANDARD CHARTERED BANK (HONG KONG) LTD v. EASE KEEN INTERNATIONAL LTD AND OTHERS

The court concluded that the FX derivative disputes are sufficiently inextricably linked to the banking facilities and mortgages, and that triable factual issues exist which would prejudice the parties if the mortgage originating summonses were determined before the writ action; therefore the originating summonses...

Source-derived case information.

Citation
STANDARD CHARTERED BANK (HONG KONG) LTD v. EASE KEEN INTERNATIONAL LTD AND OTHERS
Parties
1st Plaintiff: CLH Group (HK) Limited; 2nd Plaintiff: Hunter Socks & Apparel International Limited; 3rd Plaintiff: Wu Wing Che Deven; 4th Plaintiff: Wu Tik Yan Terence; 5th Plaintiff: Ease Keen International Limited; 1st Defendant (hca 1622/2016) / Plaintiff (hcmps): Standard Chartered Bank; 2nd Defendant (hca 1622/2016) / Plaintiff (hcmps): Standard Chartered Bank (Hong Kong) Limited; 3rd Defendant (in HCMP 2687/2016): Hunter Socks Knitting Factory (H.K.) Limited; 3rd Defendant (in HCMP 2688/2016): Chong Luen Hing Garments Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 November 2017
Case Number
HCMP2687/2016
Procedural Posture
Civil: Writ Action (hca 1622/2016) and Two Mortgage Originating Summonses (hcmp 2687/2016, HCMP 2688/2016); Applications for Consolidation and Conversion of Originating Summonses Into Writs / Interlocutory Application Hearing and Reserved Decision; Judge Ordered Conversion and Consolidation and Gave Directions for Pleadings and Trial Allocation
Outcome
Originating summonses HCMP 2687/2016 and HCMP 2688/2016 converted into writ actions; HCA 1622/2016 and the two converted writ actions to be tried before the same trial judge; order nisi for costs in the cause.
Legal Topics
Consolidation of Actions, Conversion of Originating Summons to Writ, Mortgage Enforcement, Equitable Set Off and Cross Claims, Derivative Contracts, Misrepresentation
Source Language
en
Civil Procedure Banking Law Mortgage Law Contract Law Equity Consolidation of Actions Conversion of Originating Summons to Writ Mortgage Enforcement +3 more

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Parties

CLH Group (HK) Limited

1st Plaintiff

Hunter Socks & Apparel International Limited

2nd Plaintiff

Wu Wing Che Deven

3rd Plaintiff

Wu Tik Yan Terence

4th Plaintiff

Ease Keen International Limited

5th Plaintiff

Standard Chartered Bank

1st Defendant (hca 1622/2016) / Plaintiff (hcmps)

Standard Chartered Bank (Hong Kong) Limited

2nd Defendant (hca 1622/2016) / Plaintiff (hcmps)

Hunter Socks Knitting Factory (H.K.) Limited

3rd Defendant (in HCMP 2687/2016)

Chong Luen Hing Garments Limited

3rd Defendant (in HCMP 2688/2016)

Procedural Posture

Civil: Writ Action (hca 1622/2016) and Two Mortgage Originating Summonses (hcmp 2687/2016, HCMP 2688/2016); Applications for Consolidation and Conversion of Originating Summonses Into Writs / Interlocutory Application Hearing and Reserved Decision; Judge Ordered Conversion and Consolidation and Gave Directions for Pleadings and Trial Allocation

Legal Issues

  1. 1 Whether the two mortgage originating summonses should be converted into writ actions
  2. 2 Whether the writ action and the two mortgage actions should be consolidated or tried together
  3. 3 Whether the FX derivative disputes are inextricably linked to the banking facilities underpinning the mortgage claims

Ratio Decidendi

The court concluded that the FX derivative disputes are sufficiently inextricably linked to the banking facilities and mortgages, and that triable factual issues exist which would prejudice the parties if the mortgage originating summonses were determined before the writ action; therefore the originating summonses HCMP 2687/2016 and HCMP 2688/2016 must be converted into writ actions and all three actions are to be tried together before the same trial judge with specified directions for pleadings and compliance with procedural rules.

Court Disposition

Originating summonses HCMP 2687/2016 and HCMP 2688/2016 converted into writ actions; HCA 1622/2016 and the two converted writ actions to be tried before the same trial judge; order nisi for costs in the cause.

Orders

  • HCMP 2687/2016 and HCMP 2688/2016 converted into writ actions
  • HCA 1622/2016, HCMP 2687/2016 and HCMP 2688/2016 to be tried before the same trial judge in such order and manner as he shall direct