EAA SECURITIES LTD v. CHAN LIN MUI AND ANOTHER

EAA SECURITIES LTD v. CHAN LIN MUI AND ANOTHER

The Court held that the SFC investigation report and related correspondence are relevant and potentially probative to the broad pleaded issue of whether transactions in the joint cash account were authorised, may fairly lead to a train of inquiry about the plaintiff's internal controls and the dealing director's conduct, and are necessary for the fair disposal of the cause; accordingly the Master's dismissal was set aside and specific discovery was ordered.

Citation
EAA SECURITIES LTD v. CHAN LIN MUI AND ANOTHER
Parties
Plaintiff: EAA Securities Limited; 1st Defendant: Chan Lin Mui; 2nd Defendant: Fattydad Alice Pui Yan
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
31 July 2008
Case Number
DCCJ4015/2003
Procedural Posture
Civil Securities/debt / Interlocutory Appeal (specific Discovery Rehearing)
Outcome
Appeal allowed; order of the learned Master dated 21 May 2008 set aside; specific discovery ordered
Legal Topics
Specific Discovery, Relevance, Peruvian Guano Test, Unauthorised Trading, Internal Controls, SFC Investigation and Reprimand
Source Language
EN
Civil Procedure Securities Regulation Discovery Agency Law Evidence Specific Discovery Relevance Peruvian Guano Test +3 more

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Parties

EAA Securities Limited

Plaintiff

Chan Lin Mui

1st Defendant

Fattydad Alice Pui Yan

2nd Defendant

Procedural Posture

Civil Securities/debt / Interlocutory Appeal (specific Discovery Rehearing)

Legal Issues

  1. 1 Whether the SFC investigation report and related correspondence are relevant and in the Plaintiff's possession, custody or power for specific discovery under Order 24 r.7 RDC
  2. 2 Whether the documents are necessary for fairly disposing of the cause or for saving costs under Order 24 r.8 RDC
  3. 3 Whether the request amounts to impermissible fishing or seeks materials going only to credit or to frame a new case

Ratio Decidendi

The Court held that the SFC investigation report and related correspondence are relevant and potentially probative to the broad pleaded issue of whether transactions in the joint cash account were authorised, may fairly lead to a train of inquiry about the plaintiff's internal controls and the dealing director's conduct, and are necessary for the fair disposal of the cause; accordingly the Master's dismissal was set aside and specific discovery was ordered.

Court Disposition

Appeal allowed; order of the learned Master dated 21 May 2008 set aside; specific discovery ordered

Orders

  • Order of the learned Master dated 21 May 2008 set aside
  • Order granting specific discovery in terms of paragraph 1 of the Summons requiring disclosure of the SFC investigation report (Reprimand Report) and related correspondence (Letters)