JACKSON XU SHAO ZE AND ANOTHER v. TSAI TIM YUEN AND ANOTHER

JACKSON XU SHAO ZE AND ANOTHER v. TSAI TIM YUEN AND ANOTHER

The 1st defendant failed to prove that Hong Kong is not the natural or appropriate forum and failed to establish that the Shenzhen Luo Wu People's Court is clearly or distinctly a more appropriate forum; key connections (defendant's Hong Kong residence, Hong Kong companies, trademark ownership, loan advances and subjects of dispute) meant Hong Kong had the most real and substantial connection and the plaintiffs were entitled to sue in Hong Kong without joining the PRC entity; accordingly the stay was refused and the Master’s order dismissed and affirmed on appeal.

Citation
JACKSON XU SHAO ZE AND ANOTHER v. TSAI TIM YUEN AND ANOTHER
Parties
1st Plaintiff: Jackson Xu Shao Ze (徐銚澤); 2nd Plaintiff: Lai Ming Wai (黎明偉); 1st Defendant: Tsai Tim Yuen (蔡添源); 2nd Defendant: Jacky Muk Chung Wing (麥宗永)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 May 2014
Case Number
HCA902/2011
Procedural Posture
Civil Stay Application on Forum Non Conveniens / Appeal/rehearing De Novo From Master Order; Judgment on Appeal
Outcome
Appeal dismissed; order of Master S Kwang dated 7 October 2013 affirmed
Legal Topics
Forum Non Conveniens, Stay of Proceedings, Misrepresentation, Guarantee, Conspiracy to Injure, Choice of Law, Joinder/necessary Parties, Admissibility of Expert Evidence, Costs
Source Language
EN
Civil Procedure Contract Law Tort (economic/conspiracy) Private International Law/choice of Law Forum Non Conveniens Stay of Proceedings Misrepresentation Guarantee +5 more

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Parties

Jackson Xu Shao Ze (徐銚澤)

1st Plaintiff

Lai Ming Wai (黎明偉)

2nd Plaintiff

Tsai Tim Yuen (蔡添源)

1st Defendant

Jacky Muk Chung Wing (麥宗永)

2nd Defendant

Procedural Posture

Civil Stay Application on Forum Non Conveniens / Appeal/rehearing De Novo From Master Order; Judgment on Appeal

Legal Issues

  1. 1 Whether Hong Kong is the natural and appropriate forum for the plaintiffs' claim against the 1st defendant
  2. 2 Whether the Shenzhen Luo Wu People's Court is clearly or distinctly a more appropriate forum
  3. 3 Whether Weiyuen Shenzhen is a necessary or indispensable party such that the action should be tried in the PRC

Ratio Decidendi

The 1st defendant failed to prove that Hong Kong is not the natural or appropriate forum and failed to establish that the Shenzhen Luo Wu People's Court is clearly or distinctly a more appropriate forum; key connections (defendant's Hong Kong residence, Hong Kong companies, trademark ownership, loan advances and subjects of dispute) meant Hong Kong had the most real and substantial connection and the plaintiffs were entitled to sue in Hong Kong without joining the PRC entity; accordingly the stay was refused and the Master’s order dismissed and affirmed on appeal.

Court Disposition

Appeal dismissed; order of Master S Kwang dated 7 October 2013 affirmed

Orders

  • Appeal dismissed and order of Master S Kwang affirmed
  • Costs to follow the event; order nisi that 1st defendant Tsai Tim Yuen to pay plaintiffs' costs of the appeal