STEP BY STEP LTD AND OTHERS v. DOROTHY JANE FURNESS AND OTHERS

STEP BY STEP LTD AND OTHERS v. DOROTHY JANE FURNESS AND OTHERS

Appeal allowed in part: the Master’s orders were varied to limit discovery to specific classes of primary transactional and banking records for the 3rd defendant from incorporation to September 2008 (cheque books and stubs, deposit slips, withdrawal slips, cash books, telegraphic transfer forms and confirmations, daily sales records, invoices, receipts, goods receipt notes, petty cash records, contracts for assets), audited accounts for both 3rd and 4th defendants confined to the end of the 2007–2008 financial year, discovery of broader supporting working papers for the 3rd defendant and any supporting accounting documents for the 4th defendant was refused as overbroad or fishing, and...

Citation
STEP BY STEP LTD AND OTHERS v. DOROTHY JANE FURNESS AND OTHERS
Parties
1st Plaintiff: STEP BY STEP LIMITED; 2nd Plaintiff: NEW SUCCESS ENTERPRISES LIMITED; 3rd Plaintiff: STEP UP LIMITED; 1st Defendant: DOROTHY JANE FURNESS; 2nd Defendant: RAPHAEL HOMER ECHALUCE; 3rd Defendant: ENTERTAIN COMPANY LIMITED; 4th Defendant: MAD DOGS WANCHAI PUBLIC HOUSE LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 September 2009
Case Number
HCMP850/2007
Procedural Posture
Civil Action Concerning Discovery and Tracing of Misappropriated Funds / Interlocutory Appeal From Master's Discovery Order (appeal Heard in Chambers)
Outcome
Appeal allowed in part and Master’s orders varied as set out; further directions on timetable for discovery and costs to be heard.
Legal Topics
Specific Discovery, Relevance and Necessity, Tracing and Proprietary Remedies, Audited Accounts and Supporting Documents, Fishing Expedition
Source Language
EN
Civil Procedure Discovery Equity Trusts Company Law Fraud Specific Discovery Relevance and Necessity +3 more

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Parties

STEP BY STEP LIMITED

1st Plaintiff

NEW SUCCESS ENTERPRISES LIMITED

2nd Plaintiff

STEP UP LIMITED

3rd Plaintiff

DOROTHY JANE FURNESS

1st Defendant

RAPHAEL HOMER ECHALUCE

2nd Defendant

ENTERTAIN COMPANY LIMITED

3rd Defendant

MAD DOGS WANCHAI PUBLIC HOUSE LIMITED

4th Defendant

Procedural Posture

Civil Action Concerning Discovery and Tracing of Misappropriated Funds / Interlocutory Appeal From Master's Discovery Order (appeal Heard in Chambers)

Legal Issues

  1. 1 Whether the documents sought are relevant to the issues in dispute
  2. 2 Whether the documents sought are necessary for the fair disposal of the cause or for saving costs
  3. 3 Scope and limits of specific discovery (audited accounts versus supporting working papers)

Ratio Decidendi

Appeal allowed in part: the Master’s orders were varied to limit discovery to specific classes of primary transactional and banking records for the 3rd defendant from incorporation to September 2008 (cheque books and stubs, deposit slips, withdrawal slips, cash books, telegraphic transfer forms and confirmations, daily sales records, invoices, receipts, goods receipt notes, petty cash records, contracts for assets), audited accounts for both 3rd and 4th defendants confined to the end of the 2007–2008 financial year, discovery of broader supporting working papers for the 3rd defendant and any supporting accounting documents for the 4th defendant was refused as overbroad or fishing, and...

Court Disposition

Appeal allowed in part and Master’s orders varied as set out; further directions on timetable for discovery and costs to be heard.

Orders

  • Discovery ordered for the 3rd defendant limited to specified classes of primary banking and transactional records from incorporation to September 2008, to be verified on affidavit
  • Audited accounts for the 3rd and 4th defendants limited to the end of their financial year 2007–2008 (no order to provide audited accounts to date)