CHINA METAL RECYCLING (HOLDINGS) LTD (IN LIQUIDATION) AND ANOTHER v. UBS AG AND ANOTHER

CHINA METAL RECYCLING (HOLDINGS) LTD (IN LIQUIDATION) AND ANOTHER v. UBS AG AND ANOTHER

Leave to appeal was refused because the plaintiffs had shown an arguable case on knowing receipt sufficient to proceed to trial under the 'serious issue to be tried' standard, attribution questions raising complex, case-specific issues are unsuitable for interlocutory determination, and the newly invoked limitation issue did not justify grant of leave to appeal; accordingly the summonses for leave were dismissed.

Citation
[2021] HKCFI 1657
Parties
1st Plaintiff (in Liquidation): China Metal Recycling (Holdings) Limited; 2nd Plaintiff (in Their Capacity as the Joint and Several Liquidators of China Metal Recycling (holdings) Limited): Cosimo Borrelli and Chi Lai Man Jocelyn; 1st Defendant: UBS AG; 2nd Defendant: UBS Europe SE (formerly trading as UBS Limited)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 June 2021
Case Number
HCA1348/2019
Procedural Posture
Civil Action (service Out / Leave to Appeal Under Order 11) / Application for Leave to Appeal From Interlocutory Decision (hearing in Chambers)
Outcome
Summonses dismissed; leave to appeal refused
Legal Topics
Knowing Receipt, Dishonest Assistance, Attribution, Service Out (order 11), Leave to Appeal, Meaning of Fraud Under Limitation Ordinance S26
Source Language
EN
Trusts and Fiduciary Obligations Company Law Civil Procedure Limitation Law Equity Knowing Receipt Dishonest Assistance Attribution +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 5 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

China Metal Recycling (Holdings) Limited

1st Plaintiff (in Liquidation)

Cosimo Borrelli and Chi Lai Man Jocelyn

2nd Plaintiff (in Their Capacity as the Joint and Several Liquidators of China Metal Recycling (holdings) Limited)

UBS AG

1st Defendant

UBS Europe SE (formerly trading as UBS Limited)

2nd Defendant

Procedural Posture

Civil Action (service Out / Leave to Appeal Under Order 11) / Application for Leave to Appeal From Interlocutory Decision (hearing in Chambers)

Legal Issues

  1. 1 Whether the Criterion principle disposes the plaintiffs' knowing receipt claim
  2. 2 Appropriate interlocutory standard for the merits: 'serious issue to be tried' v 'good arguable case'
  3. 3 Whether a special rule of attribution can be determined at interlocutory stage

Ratio Decidendi

Leave to appeal was refused because the plaintiffs had shown an arguable case on knowing receipt sufficient to proceed to trial under the 'serious issue to be tried' standard, attribution questions raising complex, case-specific issues are unsuitable for interlocutory determination, and the newly invoked limitation issue did not justify grant of leave to appeal; accordingly the summonses for leave were dismissed.

Court Disposition

Summonses dismissed; leave to appeal refused

Orders

  • Summonses dated 22 April 2021 and 21 May 2021 dismissed
  • Order nisi of costs in favour of the plaintiffs with certificate for counsel