POWER SECURITIES CO LTD (formerly known as JUN YANG SECURITIES CO LTD) v. SIN KWOK LAM AND OTHERS

POWER SECURITIES CO LTD (formerly known as JUN YANG SECURITIES CO LTD) v. SIN KWOK LAM AND OTHERS

The court struck out the counterclaim and claim because on the face of the pleaded case the losses asserted by Sin were reflective of losses suffered by Best Year and/or EPL and therefore barred by the reflective loss principle; additionally the pleaded allegations had been previously litigated or were within Sin's...

Source-derived case information.

Citation
[2019] HKCFI 2920
Parties
Plaintiff/applicant: Power Securities Company Limited; 1st Plaintiff: Best Year Enterprises Limited; Counterclaimant/claimant: Sin Kwok Lam; 2nd Defendant: Ng Kam Lung Volais; 3rd Defendant: Tang Ching Ho; 4th Defendant: Sit Sai Hung, Billy; Defendant/related Entity: Enhance Pacific Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 December 2019
Case Number
HCA1719/2018
Procedural Posture
Civil Commercial/company Litigation / Judgment on Strike Out Applications and Dismissal of Claims
Outcome
Counterclaim in HCA1719/2018 (RADCC) struck out; Statement of Claim in HCA1071/2019 struck out and 2019 Action dismissed; costs ordered against Sin (costs nisi)
Legal Topics
Reflective Loss Principle, Res Judicata/issue Estoppel, Henderson Abuse of Process, Strike Out Applications, Late Evidence/sanctions
Source Language
en
Company Law Private Law (tort/conspiracy) Civil Procedure Insolvency/winding Up Equity Reflective Loss Principle Res Judicata/issue Estoppel Henderson Abuse of Process +2 more

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Parties

Power Securities Company Limited

Plaintiff/applicant

Best Year Enterprises Limited

1st Plaintiff

Sin Kwok Lam

Counterclaimant/claimant

Ng Kam Lung Volais

2nd Defendant

Tang Ching Ho

3rd Defendant

Sit Sai Hung, Billy

4th Defendant

Enhance Pacific Limited

Defendant/related Entity

Procedural Posture

Civil Commercial/company Litigation / Judgment on Strike Out Applications and Dismissal of Claims

Legal Issues

  1. 1 Whether the claimant's claims are barred by the rule against recovery of reflective loss
  2. 2 Whether earlier summary judgment and related proceedings give rise to res judicata/privity estoppel against the claimant
  3. 3 Whether the repeated proceedings amount to an abuse of process (Henderson)

Ratio Decidendi

The court struck out the counterclaim and claim because on the face of the pleaded case the losses asserted by Sin were reflective of losses suffered by Best Year and/or EPL and therefore barred by the reflective loss principle; additionally the pleaded allegations had been previously litigated or were within Sin's privity with Best Year such that res judicata/abuse of process principles applied; the 2019 Action was duplicative and therefore unsustainable.

Court Disposition

Counterclaim in HCA1719/2018 (RADCC) struck out; Statement of Claim in HCA1071/2019 struck out and 2019 Action dismissed; costs ordered against Sin (costs nisi)

Orders

  • Strike out the re-amended defence and counterclaim (RADCC) in HCA1719/2018
  • Strike out the Statement of Claim in HCA1071/2019 and dismiss the 2019 Action