E-TRADE SECURITIES LLC v. CEDALIAN CARE SERVICES CONSULTANTS LTD AND OTHERS

E-TRADE SECURITIES LLC v. CEDALIAN CARE SERVICES CONSULTANTS LTD AND OTHERS

Because the 4th defendant failed to file any defence within time, provided no acceptable explanation for repeated defaults, and the plaintiff established a prima facie link between the fraud and funds traced to the 4th defendant, the court exercised its discretion to enter judgment for the plaintiff and to continue the Mareva order until satisfaction of the judgment, with execution stayed for 14 days.

Citation
E-TRADE SECURITIES LLC v. CEDALIAN CARE SERVICES CONSULTANTS LTD AND OTHERS
Parties
Plaintiff: E*TRADE SECURITIES LLC; 1st Defendant: CEDALIAN CARE SERVICES CONSULTANTS LIMITED; 2nd Defendant: HAVI INDUSTRIAL (H.K.) CO., LIMITED; 3rd Defendant: HONG KONG XIE YING TRADING CO., LIMITED; 4th Defendant: KWOK WAI ELECTRONIC LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 December 2016
Case Number
HCA2312/2016
Procedural Posture
Civil Fraud/recovery / Application for Default Judgment and Continuation of Mareva Order; Decision Entered
Outcome
Judgment entered in favour of the plaintiff against the 4th defendant; Mareva order continued; execution stayed for 14 days from the date of the decision.
Legal Topics
Default Judgment, Mareva Injunction, Service of Proceedings, Extension of Time to File Defence, Set Aside of Judgment
Source Language
EN
Civil Procedure Injunctions Fraud Banking/asset Recovery Default Judgment Mareva Injunction Service of Proceedings Extension of Time to File Defence +1 more

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Parties

E*TRADE SECURITIES LLC

Plaintiff

CEDALIAN CARE SERVICES CONSULTANTS LIMITED

1st Defendant

HAVI INDUSTRIAL (H.K.) CO., LIMITED

2nd Defendant

HONG KONG XIE YING TRADING CO., LIMITED

3rd Defendant

KWOK WAI ELECTRONIC LIMITED

4th Defendant

Procedural Posture

Civil Fraud/recovery / Application for Default Judgment and Continuation of Mareva Order; Decision Entered

Legal Issues

  1. 1 Whether to enter default judgment against the 4th defendant for failure to file a defence
  2. 2 Whether to continue the Mareva (asset‑freezing) order against the 4th defendant pending satisfaction of judgment
  3. 3 Whether to grant relief for extension of time to file a defence out of time

Ratio Decidendi

Because the 4th defendant failed to file any defence within time, provided no acceptable explanation for repeated defaults, and the plaintiff established a prima facie link between the fraud and funds traced to the 4th defendant, the court exercised its discretion to enter judgment for the plaintiff and to continue the Mareva order until satisfaction of the judgment, with execution stayed for 14 days.

Court Disposition

Judgment entered in favour of the plaintiff against the 4th defendant; Mareva order continued; execution stayed for 14 days from the date of the decision.

Orders

  • Judgment to be entered in terms of the amended draft in favour of the plaintiff against the 4th defendant
  • Continue the Mareva order made on 26 September 2016 against the 4th defendant until satisfaction of the judgment