LAU LAI SHAN LISA v. ZHANG QI AND OTHERS

LAU LAI SHAN LISA v. ZHANG QI AND OTHERS

On the existing evidence the disputed assets are prima facie trust assets controlled through Kidbrooke and therefore fall within the Mareva injunction. Absent full and frank evidence that there are no alternative funds and a demonstrable arguable defence, the applicant was not entitled to release of the frozen...

Source-derived case information.

Citation
[2019] HKCFI 2170
Parties
Plaintiff: Plaintiff; 1st Defendant: 1st Defendant; Trustee Company: Kidbrooke; Settlor: Lau Chun Cheong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 September 2019
Case Number
HCA1395/2018
Procedural Posture
Civil Proprietary Claim With Mareva Injunction / Interim Application to Vary Mareva Injunction / Release of Funds
Outcome
Interim: Mareva injunction maintained; application to vary/release funds dismissed on the evidence before the court
Legal Topics
Mareva Injunction, Proprietary Claim, Release of Frozen Funds, Trust Ownership Dispute, Two Stage Test for Release of Funds
Source Language
en
Trusts Equity Civil Procedure Injunctions Mareva Injunction Proprietary Claim Release of Frozen Funds Trust Ownership Dispute +1 more

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Parties

Plaintiff

Plaintiff

1st Defendant

1st Defendant

Kidbrooke

Trustee Company

Lau Chun Cheong

Settlor

Procedural Posture

Civil Proprietary Claim With Mareva Injunction / Interim Application to Vary Mareva Injunction / Release of Funds

Legal Issues

  1. 1 Whether the disputed bank accounts and property assets are trust assets
  2. 2 Whether the Mareva injunction properly covers the defendant's bank accounts up to HK$60,000,000
  3. 3 Whether the defendant has shown there are no alternative funds and an arguable defence to justify release of frozen funds

Ratio Decidendi

On the existing evidence the disputed assets are prima facie trust assets controlled through Kidbrooke and therefore fall within the Mareva injunction. Absent full and frank evidence that there are no alternative funds and a demonstrable arguable defence, the applicant was not entitled to release of the frozen funds; the injunction was therefore maintained and the variation to release funds refused on the current evidence.

Court Disposition

Interim: Mareva injunction maintained; application to vary/release funds dismissed on the evidence before the court

Orders

  • Mareva injunction maintained restraining removal, disposal, dealing with or diminution of the defendant's assets in Hong Kong up to HK$60,000,000
  • Application to vary the injunction to permit specified withdrawals dismissed