SAP PRODUCTS LTD v. XENA SECURITY LTD AND ANOTHER

SAP PRODUCTS LTD v. XENA SECURITY LTD AND ANOTHER

Even accepting the plaintiff's pleaded facts, the conduct alleged (payments from personal account on some occasions and use of personal email) did not demonstrate any illegitimate purpose, fraud or deliberate evasion of existing legal obligations by the 2nd defendant; there was no basis to pierce the corporate veil...

Source-derived case information.

Citation
SAP PRODUCTS LTD v. XENA SECURITY LTD AND ANOTHER
Parties
Plaintiff: P; 1st Defendant: X**A SEC****Y LIM***D; 2nd Defendant: SILVAIN FOTI
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
30 December 2016
Case Number
DCCJ2014/2015
Procedural Posture
Civil Debt/contract / Strike Out Application (summons Dated 11 April 2016) Decided 30 December 2016
Outcome
Statement of claim insofar as it related to the 2nd defendant struck out; plaintiff's action against the 2nd defendant dismissed.
Legal Topics
Piercing Corporate Veil, Abuse of Process, Strike Out, Director Personal Liability, Agency
Source Language
en
Company Law Contract Law Civil Procedure Piercing Corporate Veil Abuse of Process Strike Out Director Personal Liability Agency

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Parties

P

Plaintiff

X**A SEC****Y LIM***D

1st Defendant

SILVAIN FOTI

2nd Defendant

Procedural Posture

Civil Debt/contract / Strike Out Application (summons Dated 11 April 2016) Decided 30 December 2016

Legal Issues

  1. 1 Whether the statement of claim discloses a reasonable cause of action against the 2nd defendant
  2. 2 Whether the corporate veil of the 1st defendant should be pierced to make the 2nd defendant liable
  3. 3 Whether the claim against the 2nd defendant is frivolous or vexatious and an abuse of process

Ratio Decidendi

Even accepting the plaintiff's pleaded facts, the conduct alleged (payments from personal account on some occasions and use of personal email) did not demonstrate any illegitimate purpose, fraud or deliberate evasion of existing legal obligations by the 2nd defendant; there was no basis to pierce the corporate veil and therefore the claim against the 2nd defendant disclosed no viable cause of action and was struck out.

Court Disposition

Statement of claim insofar as it related to the 2nd defendant struck out; plaintiff's action against the 2nd defendant dismissed.

Orders

  • SoC as against 2nd defendant struck out
  • Action against 2nd defendant dismissed