THE YERRID LAW FIRM v. QIANSBAIZI TRADING LIMITED AND ANOTHER

THE YERRID LAW FIRM v. QIANSBAIZI TRADING LIMITED AND ANOTHER

The Court allowed the appeals and set aside the default judgment and garnishee order conditionally because Tin Tat had credible evidence giving reasonable prospects of establishing it received the funds as an agent and the illegality arguments were not sufficiently clear or suitable for summary determination; accordingly the appropriate remedy was conditional setting aside upon Tin Tat paying US$200,000 into court within 28 days (with liberty to apply), leaving the substantive legal issues for trial or further hearing.

Citation
[2023] HKCA 788
Parties
Plaintiff (judgment Creditor): The Yerrid Law Firm; 1st Defendant: Qiansbaizi Trading Limited; 2nd Defendant (judgment Debtor, Appellant): Tin Tat Trading Co. Limited; Garnishee: China Citic Bank International Limited
Court
Court of Appeal
Jurisdiction
Hong Kong
Judgment Date
21 June 2023
Case Number
CACV170/2021
Procedural Posture
Civil Appeal (court of Appeal) / Appeal From Interlocutory Orders to Set Aside Default Judgment and Garnishee Order; Reasons for Judgment and Decision on Costs
Outcome
Appeals allowed in part; default judgment and garnishee order set aside conditionally
Legal Topics
Default Judgment, Setting Aside Judgments, Garnishee Order, Ministerial Receipt, Bona Fide Purchase for Value Without Notice, Change of Position Defence, Illegal Contracts/illegality Doctrine, Agency, Anti Money Laundering and Counter Terrorist Financing Ordinance (cap 615) S40
Source Language
EN
Restitution Civil Procedure Banking Law Regulatory/aml Compliance Equity and Trusts Default Judgment Setting Aside Judgments Garnishee Order +6 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 5 Authorities cited 13 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

The Yerrid Law Firm

Plaintiff (judgment Creditor)

Qiansbaizi Trading Limited

1st Defendant

Tin Tat Trading Co. Limited

2nd Defendant (judgment Debtor, Appellant)

China Citic Bank International Limited

Garnishee

Procedural Posture

Civil Appeal (court of Appeal) / Appeal From Interlocutory Orders to Set Aside Default Judgment and Garnishee Order; Reasons for Judgment and Decision on Costs

Legal Issues

  1. 1 Whether the default judgment and garnishee order should be set aside
  2. 2 Whether statutory or common law illegality (breach of s40 Cap 615) bars restitutionary defences including ministerial receipt, bona fide purchaser and change of position
  3. 3 Whether Tin Tat was acting as receiving agent for another money service operator and thus had a defence of agency/ministerial receipt

Ratio Decidendi

The Court allowed the appeals and set aside the default judgment and garnishee order conditionally because Tin Tat had credible evidence giving reasonable prospects of establishing it received the funds as an agent and the illegality arguments were not sufficiently clear or suitable for summary determination; accordingly the appropriate remedy was conditional setting aside upon Tin Tat paying US$200,000 into court within 28 days (with liberty to apply), leaving the substantive legal issues for trial or further hearing.

Court Disposition

Appeals allowed in part; default judgment and garnishee order set aside conditionally

Orders

  • Default judgment and garnishee order set aside upon Tin Tat paying into court US$200,000 within 28 days, with liberty to apply
  • Costs of the application before the Master to be paid to the plaintiff