JACKY ZONG AND OTHERS v. KELLY FULI ZONG AND ANOTHER

JACKY ZONG AND OTHERS v. KELLY FULI ZONG AND ANOTHER

The court held that the plaintiffs established serious issues to be tried on both the contractual and trust/fiduciary claims and that, applying the two-stage s21M test, it was just and convenient to grant a preservation order in aid of the PRC proceedings; accordingly a preservation order prohibiting withdrawal or encumbrance of the HSBC Account Assets and an ancillary disclosure order were granted, limited to preserving assets for determination by the PRC Court and without adjudicating merits of the foreign claim.

Citation
[2025] HKCFI 3355
Parties
1st Plaintiff: Jacky Zong (宗继昌); 2nd Plaintiff: Jessie Jieli Zong (宗婕莉); 3rd Plaintiff: Jerry Jisheng Zong (宗继盛); 1st Defendant: Kelly Fuli Zong (宗馥莉); 2nd Defendant (third Party in PRC Proceedings): Jian Hao Ventures Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 August 2025
Case Number
HCMP2772/2024
Procedural Posture
Originating Summons Under Section 21 M High Court Ordinance (cap.4) for Preservation Order in Aid of Proceedings in Hangzhou, PRC / Decision (judgment Delivered 1 August 2025)
Outcome
Originating Summons granted in part: preservation order and ancillary disclosure order made in aid of Hangzhou/PRC proceedings; interlocutory summons rendered unnecessary; costs order nisi made in favour of plaintiffs.
Legal Topics
Preservation Order (s21 M Hco), Constructive Trust, Breach of Contract, Disclosure Order, Enforcement of Foreign Judgment, Comity and Forum Considerations
Source Language
EN
Trusts and Equity Interim Remedies and Injunctions Civil Procedure Private International Law Company Law Preservation Order (s21 M Hco) Constructive Trust Breach of Contract +3 more

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Parties

Jacky Zong (宗继昌)

1st Plaintiff

Jessie Jieli Zong (宗婕莉)

2nd Plaintiff

Jerry Jisheng Zong (宗继盛)

3rd Plaintiff

Kelly Fuli Zong (宗馥莉)

1st Defendant

Jian Hao Ventures Limited

2nd Defendant (third Party in PRC Proceedings)

Procedural Posture

Originating Summons Under Section 21 M High Court Ordinance (cap.4) for Preservation Order in Aid of Proceedings in Hangzhou, PRC / Decision (judgment Delivered 1 August 2025)

Legal Issues

  1. 1 Whether the plaintiffs have a proprietary or fiduciary/constructive trust interest in the HSBC Account Assets such as to justify preservation relief
  2. 2 Whether there are serious issues to be tried (or a good arguable case) on the contractual and trust claims
  3. 3 Whether a preservation order under s21M HCO in aid of the Hangzhou/PRC proceedings is just and convenient (second stage comity inquiry)

Ratio Decidendi

The court held that the plaintiffs established serious issues to be tried on both the contractual and trust/fiduciary claims and that, applying the two-stage s21M test, it was just and convenient to grant a preservation order in aid of the PRC proceedings; accordingly a preservation order prohibiting withdrawal or encumbrance of the HSBC Account Assets and an ancillary disclosure order were granted, limited to preserving assets for determination by the PRC Court and without adjudicating merits of the foreign claim.

Court Disposition

Originating Summons granted in part: preservation order and ancillary disclosure order made in aid of Hangzhou/PRC proceedings; interlocutory summons rendered unnecessary; costs order nisi made in favour of plaintiffs.

Orders

  • Preservation order granted restraining the 1st and 2nd Defendants from withdrawing from or encumbering the HSBC Account Assets until final disposal of the plaintiffs' claim in the Hangzhou Intermediate People’s Court (accepted and registered by the Zhejiang Higher People’s Court on 4 July 2025) or until further...
  • Disclosure order requiring disclosure of the latest balance of the HSBC Account and a full account of movement of assets, income and expenditure in the HSBC Account from 2 February 2024 until service of the order, for the limited purpose of ensuring effectiveness of the preservation order