KCMA v. ABC AND OTHERS

KCMA v. ABC AND OTHERS

The Family Trust is a realistic source of litigation funds for both parties; the correct process is a joint request to the Trustee and distributions should be limited to funding through the FDR stage. On the material before the court the appropriate interim quantum is HKD 1,500,000 each to be paid by the Trustee direct to each party's solicitors to be applied to billed/unbilled costs and held on account; the 2nd Summons is adjourned sine die and will be dismissed upon such payments; costs of this application are reserved to the ancillary relief trial.

Citation
[2020] HKCFI 848
Parties
Petitioner: KCMA; 1st Respondent: ABC; 2nd Respondent: PBB (Trustee of the Family Trust); 3rd Respondent: PBB (Trustee of the Education Trust); 4th Respondent: K
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 May 2020
Case Number
HCMC1/2019
Procedural Posture
Matrimonial Proceedings (ancillary Relief, Litigation Funding Application) / Interim Paper Disposal of Summons for Litigation Funding; Direction Hearing and FDR to Be Fixed; Substantive AR Trial Fixed for May 2021
Outcome
W's 2nd Summons adjourned sine die and to be dismissed upon each party's solicitors receiving HKD 1,500,000 from the Trustee; direction hearing for FDR fixed; costs reserved to the ancillary relief trial.
Legal Topics
Litigation Funding, Maintenance Pending Suit, S17 MPPO (dispositions and Variation), Trust Distributions, Joinder, Disclosure, Mediation/fdr
Source Language
EN
Family Law Trusts Law Civil Procedure Costs and Litigation Funding Injunctions Litigation Funding Maintenance Pending Suit S17 MPPO (dispositions and Variation) +4 more

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Parties

KCMA

Petitioner

ABC

1st Respondent

PBB (Trustee of the Family Trust)

2nd Respondent

PBB (Trustee of the Education Trust)

3rd Respondent

K

4th Respondent

Procedural Posture

Matrimonial Proceedings (ancillary Relief, Litigation Funding Application) / Interim Paper Disposal of Summons for Litigation Funding; Direction Hearing and FDR to Be Fixed; Substantive AR Trial Fixed for May 2021

Legal Issues

  1. 1 Whether the Family Trust is a source of funds reasonably available to the applicant (W)
  2. 2 Whether the respondent (H) can afford to pay W's legal costs without a distribution from the Family Trust
  3. 3 Whether the litigation funding quantum claimed by W is reasonable and appropriately limited in time

Ratio Decidendi

The Family Trust is a realistic source of litigation funds for both parties; the correct process is a joint request to the Trustee and distributions should be limited to funding through the FDR stage. On the material before the court the appropriate interim quantum is HKD 1,500,000 each to be paid by the Trustee direct to each party's solicitors to be applied to billed/unbilled costs and held on account; the 2nd Summons is adjourned sine die and will be dismissed upon such payments; costs of this application are reserved to the ancillary relief trial.

Court Disposition

W's 2nd Summons adjourned sine die and to be dismissed upon each party's solicitors receiving HKD 1,500,000 from the Trustee; direction hearing for FDR fixed; costs reserved to the ancillary relief trial.

Orders

  • Parties to undertake and jointly request the Trustee of the Family Trust within 14 days to distribute HKD 1,500,000 to each party
  • Trustee to pay HKD 1,500,000 directly to each party's solicitors to be applied towards billed and unpaid costs and held on account for future costs