LAM YIN v. LIU PING

LAM YIN v. LIU PING

The defendant demonstrated a real prospect of success on the penalty point such that the threshold for setting aside a regularly obtained default judgment was met; accordingly the court set aside the default judgment and extended time for appeal, but exercised its discretion to grant relief on terms requiring the defendant to pay HK$200,000 into court as security within 42 days to protect the plaintiff from prejudice.

Citation
[2025] HKDC 2063
Parties
Plaintiff: Lam Yin; Defendant: Liu Ping
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
16 December 2025
Case Number
DCCJ1034/2023
Procedural Posture
Civil Action Contract Dispute for Recovery of Upfront Payment / Out‑of‑time Appeal in Chambers Against Refusal to Set Aside Default Judgment; Extension of Time and Rehearing Granted on Terms
Outcome
Out‑of‑time appeal allowed and time extended; default Judgment and Master Bianca Yu’s order dated 2 July 2025 set aside on terms; if terms not complied with appeal dismissed.
Legal Topics
Setting Aside Default Judgment, Extension of Time for Appeal, Penalty Clause, Breach of Implied Term, Security for Plaintiff (payment Into Court), Statutory Demand (related)
Source Language
EN
Contract Civil Procedure Debt Recovery Penalties (contractual) Setting Aside Default Judgment Extension of Time for Appeal Penalty Clause Breach of Implied Term +2 more

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Parties

Lam Yin

Plaintiff

Liu Ping

Defendant

Procedural Posture

Civil Action Contract Dispute for Recovery of Upfront Payment / Out‑of‑time Appeal in Chambers Against Refusal to Set Aside Default Judgment; Extension of Time and Rehearing Granted on Terms

Legal Issues

  1. 1 Whether the claw‑back clause in the co‑operation agreement is an unenforceable penalty
  2. 2 Whether the defendant can show a real prospect of success to set aside a regular default judgment
  3. 3 Whether the defendant proved a breach of an implied term by the plaintiff

Ratio Decidendi

The defendant demonstrated a real prospect of success on the penalty point such that the threshold for setting aside a regularly obtained default judgment was met; accordingly the court set aside the default judgment and extended time for appeal, but exercised its discretion to grant relief on terms requiring the defendant to pay HK$200,000 into court as security within 42 days to protect the plaintiff from prejudice.

Court Disposition

Out‑of‑time appeal allowed and time extended; default Judgment and Master Bianca Yu’s order dated 2 July 2025 set aside on terms; if terms not complied with appeal dismissed.

Orders

  • Defendant to pay HK$200,000 into court as security for the plaintiff’s claim and/or costs within 42 days from date of decision
  • Upon compliance the defendant’s application for extension of time for the appeal is allowed