SHUN HING HOLDINGS CO LTD AND OTHERS v. LI KWOK PO DAVID also known as DAVID LI KWOK AND OTHERS

SHUN HING HOLDINGS CO LTD AND OTHERS v. LI KWOK PO DAVID also known as DAVID LI KWOK AND OTHERS

The 2nd Action was struck out because the pleaded and uncontroverted factual matrix did not establish facts that would reasonably put Wong on inquiry or supply the requisite knowledge for knowing receipt: the payments were from the deceased's personal account, Wong had no involvement with the Shun Hing companies, and it is neither sensible nor lawful to require a recipient spouse to suspect misuse of company funds merely because the husband was wealthy and made large gifts.

Citation
SHUN HING HOLDINGS CO LTD AND OTHERS v. LI KWOK PO DAVID also known as DAVID LI KWOK AND OTHERS
Parties
1st Plaintiff (hca 664/2012): SHUN HING HOLDINGS COMPANY LIMITED; 2nd Plaintiff (hca 664/2012); 1st Plaintiff (hca 2417/2014): SHUN HING ELECTRONIC HOLDINGS LIMITED; 3rd Plaintiff (hca 664/2012); 2nd Plaintiff (hca 2417/2014): SHUN HING ELECTRONIC TRADING COMPANY LIMITED; 4th Plaintiff (hca 664/2012): SHUN HING TECHNOLOGY COMPANY LIMITED; 1st Defendant (executors of the Estate): LI KWOK PO DAVID (also known as DAVID LI KWOK PO) & CHOI FAN KEUNG VIC, Executors of the Estate of Mong Man Wai William (Deceased); 2nd Defendant: MONG SIEN YEE CYNTHIA; 3rd Defendant: MONG TAK YEUNG DAVID; 4th Defendant: WONG PUI FAN; 5th Defendant: MONG PUI YEE PERLIE; Third Party: MONG TAK YEUNG DAVID
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 September 2016
Case Number
HCA664/2012
Procedural Posture
Civil Breach of Fiduciary Duty/trust; Knowing Receipt; Related Interlocutory Applications / Interlocutory Applications (strike Out/stay, Consolidation, Discovery, Costs)
Outcome
2nd Action (HCA 2417/2014) struck out; 2nd and 3rd Summonses dismissed
Legal Topics
Knowing Receipt, Breach of Fiduciary Duty, Strike Out for Being Unsustainable/frivolous, Discovery, Costs
Source Language
EN
Equity Trusts Company Law Civil Procedure Knowing Receipt Breach of Fiduciary Duty Strike Out for Being Unsustainable/frivolous Discovery +1 more

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Parties

SHUN HING HOLDINGS COMPANY LIMITED

1st Plaintiff (hca 664/2012)

SHUN HING ELECTRONIC HOLDINGS LIMITED

2nd Plaintiff (hca 664/2012); 1st Plaintiff (hca 2417/2014)

SHUN HING ELECTRONIC TRADING COMPANY LIMITED

3rd Plaintiff (hca 664/2012); 2nd Plaintiff (hca 2417/2014)

SHUN HING TECHNOLOGY COMPANY LIMITED

4th Plaintiff (hca 664/2012)

LI KWOK PO DAVID (also known as DAVID LI KWOK PO) & CHOI FAN KEUNG VIC, Executors of the Estate of Mong Man Wai William (Deceased)

1st Defendant (executors of the Estate)

MONG SIEN YEE CYNTHIA

2nd Defendant

MONG TAK YEUNG DAVID

3rd Defendant

WONG PUI FAN

4th Defendant

MONG PUI YEE PERLIE

5th Defendant

MONG TAK YEUNG DAVID

Third Party

Procedural Posture

Civil Breach of Fiduciary Duty/trust; Knowing Receipt; Related Interlocutory Applications / Interlocutory Applications (strike Out/stay, Consolidation, Discovery, Costs)

Legal Issues

  1. 1 Whether the claimant pleaded and can establish the requisite knowledge for a claim in knowing receipt against the defendant
  2. 2 Whether the 2nd Action is unsustainable or frivolous and should be struck out at interlocutory stage
  3. 3 Whether the two actions should be tried together and whether discovery should be compelled

Ratio Decidendi

The 2nd Action was struck out because the pleaded and uncontroverted factual matrix did not establish facts that would reasonably put Wong on inquiry or supply the requisite knowledge for knowing receipt: the payments were from the deceased's personal account, Wong had no involvement with the Shun Hing companies, and it is neither sensible nor lawful to require a recipient spouse to suspect misuse of company funds merely because the husband was wealthy and made large gifts.

Court Disposition

2nd Action (HCA 2417/2014) struck out; 2nd and 3rd Summonses dismissed

Orders

  • 2nd Action struck out
  • Order nisi that costs of the 2nd Action, including costs of the 1st Summons, be to Wong with a certificate for 2 counsel; costs of the affirmations of Mr Raymond Lo filed 6 April 2016 and 8 July 2016 disallowed