TAO, SOH NGUN v. HSBC INTERNATIONAL TRUSTEE LTD

TAO, SOH NGUN v. HSBC INTERNATIONAL TRUSTEE LTD

The court held that the Defendant's denials in paragraphs 26(1), 59 and 64 of the Amended Defence are, on the pleadings and counsel's admissions, mere traverses rather than negatives pregnant with an affirmative case; consequently the Plaintiff is not entitled to the expansive chronological particulars of every exercise of discretion sought. However, particulars sought in respect of paragraph 54(3)(b) (identifying which children were 'important customers', the criteria for that classification and the HSBC business functions/services and periods) are relevant and necessary and must be provided. The court ordered those specific particulars to be provided within 14 days and made a costs...

Citation
[2018] HKCFI 33
Parties
Plaintiff (in Her Personal Capacity and as Sole Executrix): Tao, Soh Ngun (also known as Lo To Li Kwan or Lo To Lee Kwan); Defendant (trustee): HSBC International Trustee Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 January 2018
Case Number
HCA3246/2016
Procedural Posture
High Court Action (trust Dispute) / Interlocutory Application for Further and Better Particulars (chambers Hearing)
Outcome
Application partly allowed and partly refused: wide-ranging particulars of every exercise of discretion refused; particulars regarding HSBC 'important customers' and business functions allowed.
Legal Topics
Particulars, Trustee Duties and Discretion, Alleged Common Understanding Between Settlors and Trustee, Legitimate Expectation, Conflict of Interest, Removal of Trustee, Trustee Fees and Related Party Banking
Source Language
EN
Trusts Equity Civil Procedure Succession/estate Duty Particulars Trustee Duties and Discretion Alleged Common Understanding Between Settlors and Trustee Legitimate Expectation +3 more

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Parties

Tao, Soh Ngun (also known as Lo To Li Kwan or Lo To Lee Kwan)

Plaintiff (in Her Personal Capacity and as Sole Executrix)

HSBC International Trustee Limited

Defendant (trustee)

Procedural Posture

High Court Action (trust Dispute) / Interlocutory Application for Further and Better Particulars (chambers Hearing)

Legal Issues

  1. 1 Whether the Defendant must provide detailed particulars of every occasion when the Original Trustee or Defendant exercised discretions under the Trust Deed prior to 2016
  2. 2 Whether the Defendant's denial of the Plaintiff's negative allegation is a mere traverse or a 'negative pregnant' importing an affirmative case requiring particulars
  3. 3 Whether particulars about which family members were 'important customers' of HSBC Group and the relevant business functions are necessary and relevant

Ratio Decidendi

The court held that the Defendant's denials in paragraphs 26(1), 59 and 64 of the Amended Defence are, on the pleadings and counsel's admissions, mere traverses rather than negatives pregnant with an affirmative case; consequently the Plaintiff is not entitled to the expansive chronological particulars of every exercise of discretion sought. However, particulars sought in respect of paragraph 54(3)(b) (identifying which children were 'important customers', the criteria for that classification and the HSBC business functions/services and periods) are relevant and necessary and must be provided. The court ordered those specific particulars to be provided within 14 days and made a costs...

Court Disposition

Application partly allowed and partly refused: wide-ranging particulars of every exercise of discretion refused; particulars regarding HSBC 'important customers' and business functions allowed.

Orders

  • Defendant to provide the particulars ordered in respect of paragraph 54(3)(b) (names of Children who were important customers, the basis/criteria for that classification, and the precise HSBC business functions/services and time periods for GE, Mr Lo, each named Child and the Plaintiff) within 14 days of the order
  • Costs of the application to be paid 80% by the Plaintiff to the Defendant, to be taxed if not agreed