EDWARD WALECKI v. THE GENERAL FIDUCIARY CO LTD (as trustee of the WALECKI FAMILY TRUST) AND OTHERS

EDWARD WALECKI v. THE GENERAL FIDUCIARY CO LTD (as trustee of the WALECKI FAMILY TRUST) AND OTHERS

Balancing the relevant factors the court was not satisfied the plaintiff had demonstrated a high probability of success nor that an order for security would stifle the claim; the trustee had given adequate offers of disclosure and had incurred substantial costs; accordingly security for costs was justified and the plaintiff was ordered to provide security of HK$800,000 and to pay the assessed costs for the security application totalling HK$640,000, failing which the proceedings would be stayed.

Citation
[2020] HKCFI 2921
Parties
Plaintiff: Edward Walecki; 1st Defendant (trustee): The General Fiduciary Company Ltd; 2nd Defendant (protector): Promenade Trustee Company Ltd; 3rd Defendant (beneficiary): Alexandra Walecki; 4th Defendant (beneficiary): Victoria Abbott
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 November 2020
Case Number
HCMP100/2020
Procedural Posture
Trusts: Removal of Trustee; Disclosure; Security for Costs / Interlocutory (security for Costs Application)
Outcome
Security for costs ordered against the plaintiff; costs for the security application summarily assessed and payable by the plaintiff; stay if security not provided by deadline.
Legal Topics
Removal of Trustee, Disclosure of Trust Documents, Security for Costs, Enforcement Against Foreign Plaintiffs, Assessment of Costs
Source Language
EN
Trusts Civil Procedure Costs Tax Law Removal of Trustee Disclosure of Trust Documents Security for Costs Enforcement Against Foreign Plaintiffs +1 more

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Parties

Edward Walecki

Plaintiff

The General Fiduciary Company Ltd

1st Defendant (trustee)

Promenade Trustee Company Ltd

2nd Defendant (protector)

Alexandra Walecki

3rd Defendant (beneficiary)

Victoria Abbott

4th Defendant (beneficiary)

Procedural Posture

Trusts: Removal of Trustee; Disclosure; Security for Costs / Interlocutory (security for Costs Application)

Legal Issues

  1. 1 Whether a discretionary beneficiary has a right to disclosure of trust documents
  2. 2 Whether security for costs should be ordered against a foreign resident beneficiary with no assets in Hong Kong
  3. 3 Whether an order for security would stifle the plaintiff's claim given his alleged impecuniosity

Ratio Decidendi

Balancing the relevant factors the court was not satisfied the plaintiff had demonstrated a high probability of success nor that an order for security would stifle the claim; the trustee had given adequate offers of disclosure and had incurred substantial costs; accordingly security for costs was justified and the plaintiff was ordered to provide security of HK$800,000 and to pay the assessed costs for the security application totalling HK$640,000, failing which the proceedings would be stayed.

Court Disposition

Security for costs ordered against the plaintiff; costs for the security application summarily assessed and payable by the plaintiff; stay if security not provided by deadline.

Orders

  • Plaintiff to provide security for costs in the sum of HK$800,000 by 4pm on 15 December 2020, failing which these proceedings shall be stayed.
  • On a nisi basis the total costs payable by the Plaintiff for the security application are summarily assessed at HK$640,000.