LO KAI SHUI v. HSBC INTERNATIONAL TRUSTEE LTD AND OTHERS

LO KAI SHUI v. HSBC INTERNATIONAL TRUSTEE LTD AND OTHERS

The court held that paragraphs 32–100 of the Statement of Claim and the specified paragraphs directed at KS raise the same factual matrix and legal issues already decided against similar claims in Madam Lo's Actions; Lu was in privity of interest and actively involved in those proceedings and chose to stand by, so the overlapping claims are barred by res judicata and/or constitute an abuse of process (collateral challenge). Order 15 rule 14 was unnecessary to decide and does not displace common law; amendments tied to struck-out claims were disallowed while unrelated amendments were permitted; costs awarded to defendants.

Citation
[2021] HKCFI 1539
Parties
Plaintiff: Lo Kai Shui; 1st Defendant: HSBC International Trustee Limited; 2nd Defendant: Lo Ka Shui; 3rd Defendant: Law Wai Duen Nina; 4th Defendant: KSL Management Limited; 5th Defendant: HSBC Trustee (Hong Kong) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 June 2021
Case Number
HCA404/2018
Procedural Posture
Civil Trust Proceedings (breach of Trust and Fiduciary Duties) / Applications to Strike Out Parts of Statement of Claim, Order 15 Rule 14 Application and Application to Amend — Judgment Disposing of Applications
Outcome
Judge granted defendants' strike out applications in major part, dismissed plaintiff's Order 15 rule 14 application, partially allowed and partially disallowed amendments, and awarded costs to defendants
Legal Topics
Breach of Trust, Cause of Action Estoppel, Issue Estoppel, Henderson V Henderson Abuse of Process, Order 15 RHC Representation and Binding Effect
Source Language
EN
Trusts and Equity Civil Procedure Judicial Estoppel/res Judicata Injunctions Breach of Trust Cause of Action Estoppel Issue Estoppel Henderson V Henderson Abuse of Process +1 more

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Parties

Lo Kai Shui

Plaintiff

HSBC International Trustee Limited

1st Defendant

Lo Ka Shui

2nd Defendant

Law Wai Duen Nina

3rd Defendant

KSL Management Limited

4th Defendant

HSBC Trustee (Hong Kong) Limited

5th Defendant

Procedural Posture

Civil Trust Proceedings (breach of Trust and Fiduciary Duties) / Applications to Strike Out Parts of Statement of Claim, Order 15 Rule 14 Application and Application to Amend — Judgment Disposing of Applications

Legal Issues

  1. 1 Whether parts of plaintiff's Statement of Claim are barred by res judicata (cause/issue estoppel) given prior judgment in related proceedings (Madam Lo's Actions)
  2. 2 Whether the plaintiff is in privity of interest with the prior claimant such that he is bound by that judgment
  3. 3 Whether the present proceedings amount to an abuse of process or collateral attack on the prior judgment

Ratio Decidendi

The court held that paragraphs 32–100 of the Statement of Claim and the specified paragraphs directed at KS raise the same factual matrix and legal issues already decided against similar claims in Madam Lo's Actions; Lu was in privity of interest and actively involved in those proceedings and chose to stand by, so the overlapping claims are barred by res judicata and/or constitute an abuse of process (collateral challenge). Order 15 rule 14 was unnecessary to decide and does not displace common law; amendments tied to struck-out claims were disallowed while unrelated amendments were permitted; costs awarded to defendants.

Court Disposition

Judge granted defendants' strike out applications in major part, dismissed plaintiff's Order 15 rule 14 application, partially allowed and partially disallowed amendments, and awarded costs to defendants

Orders

  • Paragraphs 32 to 100 of the Statement of Claim struck out against the 1st defendant (HSBC International Trustee Limited)
  • Paragraphs 135, 136, 137, 138.3, 138.4, 138.6, 140.3, 140.4, 140.6 and 142, and the words "D, E, F, G" in paragraph 149 of the Statement of Claim struck out against the 2nd defendant (Lo Ka Shui)