SOPEX INTERNATIONAL SA AND ANOTHER v. ARNOLD DEPARIS AND ANOTHER

SOPEX INTERNATIONAL SA AND ANOTHER v. ARNOLD DEPARIS AND ANOTHER

Substituted service did not bring the proceedings to Mr Du's attention; on the merits Mr Du demonstrated a reasonable prospect of success because the Deed and surrounding documents allowed an interpretation that the defendants had an option (not an absolute obligation) to purchase the shares, which, if correct, defeats the plaintiffs' claim on the promissory notes; accordingly the default judgment and ancillary orders were set aside and the O.14 summons dismissed, with unconditional leave to defend.

Citation
SOPEX INTERNATIONAL SA AND ANOTHER v. ARNOLD DEPARIS AND ANOTHER
Parties
1st Judgment Creditor / 1st Plaintiff: Sopex International S.A.; 2nd Judgment Creditor / 2nd Plaintiff: Sedona International Holdings Ltd; 1st Judgment Debtor / 1st Defendant: Arnold DeParis; 2nd Judgment Debtor / 2nd Defendant: Jian Ping Du
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 July 2005
Case Number
HCCL21/2003
Procedural Posture
Commercial Action: Simple Claim on Promissory Notes / Bills of Exchange / Application to Set Aside Substituted Service, Default Judgment, Oral Examination and Prohibition Order; O.14 Summons for Summary Judgment; Judgment Delivered 11 July 2005
Outcome
Default judgment, oral examination order and prohibition order set aside; O.14 summary judgment dismissed; 2nd defendant granted unconditional leave to defend; order nisi as to costs in favour of 2nd defendant.
Legal Topics
Service of Process, Substituted Service, Default Judgment, Setting Aside Judgment, Summary Judgment (o.14), Promissory Notes / Bills of Exchange, Escrow, Specific Performance, Fraud Pleadings, Interpretation of Deed
Source Language
EN
Civil Procedure Contract Law Commercial Law Negotiable Instruments Equity Service of Process Substituted Service Default Judgment +7 more

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Parties

Sopex International S.A.

1st Judgment Creditor / 1st Plaintiff

Sedona International Holdings Ltd

2nd Judgment Creditor / 2nd Plaintiff

Arnold DeParis

1st Judgment Debtor / 1st Defendant

Jian Ping Du

2nd Judgment Debtor / 2nd Defendant

Procedural Posture

Commercial Action: Simple Claim on Promissory Notes / Bills of Exchange / Application to Set Aside Substituted Service, Default Judgment, Oral Examination and Prohibition Order; O.14 Summons for Summary Judgment; Judgment Delivered 11 July 2005

Legal Issues

  1. 1 Whether substituted service brought proceedings to the defendant
  2. 2 Whether default judgment should be set aside where defendant did not receive notice
  3. 3 Whether defendant must show a defence and the test to be applied

Ratio Decidendi

Substituted service did not bring the proceedings to Mr Du's attention; on the merits Mr Du demonstrated a reasonable prospect of success because the Deed and surrounding documents allowed an interpretation that the defendants had an option (not an absolute obligation) to purchase the shares, which, if correct, defeats the plaintiffs' claim on the promissory notes; accordingly the default judgment and ancillary orders were set aside and the O.14 summons dismissed, with unconditional leave to defend.

Court Disposition

Default judgment, oral examination order and prohibition order set aside; O.14 summary judgment dismissed; 2nd defendant granted unconditional leave to defend; order nisi as to costs in favour of 2nd defendant.

Orders

  • Default judgment set aside
  • Oral examination order set aside