JACKY ZONG AND OTHERS v. KELLY FULI ZONG AND ANOTHER

JACKY ZONG AND OTHERS v. KELLY FULI ZONG AND ANOTHER

The court refused leave to appeal and held that in section 21M applications in aid of foreign proceedings Stage 1 requires only a serious issue to be tried (a low threshold) and Stage 2 permits the court to exercise its discretion regarding foreign elements, need for security and policing measures; preservation orders may be granted without a prerequisite real risk of dissipation where necessary to preserve the subject-matter; on the facts there were serious issues to be tried on trust and proprietary claims and the disclosure order was justified to police the preservation order.

Citation
[2025] HKCFI 4525
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: Jian Hao Ventures Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 September 2025
Case Number
HCMP2772/2024
Procedural Posture
Section 21 M High Court Ordinance Application (injunction and Disclosure) in Aid of PRC Proceedings / Application for Leave to Appeal Against Interlocutory Decision; Disposal on Paper; Decision on Leave and Related Interim Stay and Costs
Outcome
Defendants' application for leave to appeal dismissed; interim stay granted in part; costs awarded against Defendants; taxation ordered
Legal Topics
Section 21 M High Court Ordinance, Preservation Order Vs Mareva Injunction, Threshold for Interim Relief, Proprietary and Fiduciary Claims, Disclosure to Police Injunctions, Leave to Appeal, Security and Costs
Source Language
EN
Civil Procedure Equity Trusts Cross Border Enforcement Injunctions Disclosure Orders Section 21 M High Court Ordinance Preservation Order Vs Mareva Injunction +5 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

Procedural Posture

Section 21 M High Court Ordinance Application (injunction and Disclosure) in Aid of PRC Proceedings / Application for Leave to Appeal Against Interlocutory Decision; Disposal on Paper; Decision on Leave and Related Interim Stay and Costs

Legal Issues

  1. 1 What is the proper threshold for a section 21M injunction in aid of foreign proceedings (serious issue to be tried v good arguable case)?
  2. 2 Whether declaratory relief in foreign proceedings requires a heightened threshold or a real risk of dissipation before Hong Kong interim relief issues
  3. 3 Whether the preservation order sought is substantively a Mareva freezing order

Ratio Decidendi

The court refused leave to appeal and held that in section 21M applications in aid of foreign proceedings Stage 1 requires only a serious issue to be tried (a low threshold) and Stage 2 permits the court to exercise its discretion regarding foreign elements, need for security and policing measures; preservation orders may be granted without a prerequisite real risk of dissipation where necessary to preserve the subject-matter; on the facts there were serious issues to be tried on trust and proprietary claims and the disclosure order was justified to police the preservation order.

Court Disposition

Defendants' application for leave to appeal dismissed; interim stay granted in part; costs awarded against Defendants; taxation ordered

Orders

  • Leave to appeal refused (application dismissed)
  • Interim stay granted of §§3(b) and 3(c) of the Disclosure Order until determination of any renewed application to the Court of Appeal or further order