FULLHOUSE TRADING CO LTD v. NOBLEGAIN LTD

FULLHOUSE TRADING CO LTD v. NOBLEGAIN LTD

The court held that Noblegain made out a prima facie case that the financial statements, auditors' reports and tax returns of Success On (including Dongguan Success On) for 1998/1999 to 2003/2004 were relevant to quantum and an account of profits and ordered their disclosure; the court found documents filed in relation to Fullhouse's deregistration and reinstatement were relevant and ordered disclosure of those documents, rejected Fullhouse's purported absence of other documents for disclosure, exercised discretion to permit the application notwithstanding delay, and made specific costs directions allocating costs between the parties.

Citation
FULLHOUSE TRADING CO LTD v. NOBLEGAIN LTD
Parties
Plaintiff (hca 7865/2000): NOBLEGAIN LIMITED; 1st Defendant: MAK SHU SUN (aka Raymond Mak); 2nd Defendant: LEE KAM HUNG (aka Winsome Lee); 3rd Defendant: YEUNG WAI HAR (aka Connie Yeung); 4th Defendant: SUCCESS ON ENTERPRISES LIMITED; 5th Defendant: CHAN MAN WONG; 6th Defendant; Plaintiff (hca 5207/1999): FULLHOUSE TRADING COMPANY LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 August 2011
Case Number
HCA5207/1999
Procedural Posture
Civil Discovery Application (specific Discovery) / Interlocutory Decision on Summons for Specific Discovery
Outcome
Application granted in part and refused in part; discovery ordered against Success On Enterprises Limited and ordered for Fullhouse documents relating to deregistration/reinstatement; limited disclosure against Fullhouse otherwise refused for lack of documents; costs orders made.
Legal Topics
Specific Discovery Under Order 24, Breach of Fiduciary Duty, Conspiracy to Injure, Account of Profits, Costs Orders, Deregistration and Document Preservation
Source Language
EN
Civil Procedure Company Law Equity and Fiduciary Duties Tort (conspiracy) Discovery Law Specific Discovery Under Order 24 Breach of Fiduciary Duty Conspiracy to Injure +3 more

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Parties

NOBLEGAIN LIMITED

Plaintiff (hca 7865/2000)

MAK SHU SUN (aka Raymond Mak)

1st Defendant

LEE KAM HUNG (aka Winsome Lee)

2nd Defendant

YEUNG WAI HAR (aka Connie Yeung)

3rd Defendant

SUCCESS ON ENTERPRISES LIMITED

4th Defendant

CHAN MAN WONG

5th Defendant

FULLHOUSE TRADING COMPANY LIMITED

6th Defendant; Plaintiff (hca 5207/1999)

Procedural Posture

Civil Discovery Application (specific Discovery) / Interlocutory Decision on Summons for Specific Discovery

Legal Issues

  1. 1 Whether plaintiff established a prima facie case to justify specific discovery under Order 24 rules 3 and 7
  2. 2 Whether the financial statements, auditors' reports and tax returns of Success On and Fullhouse are relevant to quantum and account of profits
  3. 3 Whether the plaintiff's eight year delay in pursuing earlier discovery defeats the application or causes prejudice

Ratio Decidendi

The court held that Noblegain made out a prima facie case that the financial statements, auditors' reports and tax returns of Success On (including Dongguan Success On) for 1998/1999 to 2003/2004 were relevant to quantum and an account of profits and ordered their disclosure; the court found documents filed in relation to Fullhouse's deregistration and reinstatement were relevant and ordered disclosure of those documents, rejected Fullhouse's purported absence of other documents for disclosure, exercised discretion to permit the application notwithstanding delay, and made specific costs directions allocating costs between the parties.

Court Disposition

Application granted in part and refused in part; discovery ordered against Success On Enterprises Limited and ordered for Fullhouse documents relating to deregistration/reinstatement; limited disclosure against Fullhouse otherwise refused for lack of documents; costs orders made.

Orders

  • In HCA 7865/2000 Success On Enterprises Limited to disclose to Noblegain Limited all financial statements, auditors' reports and tax returns of Success On Enterprises Limited and all its subsidiaries or affiliates including Dongguan Success On for the period 1998/1999 to 2003/2004 filed in Hong Kong and in the PRC.
  • Costs nisi: as between Noblegain and the 4th and 6th Defendants the 4th and 6th Defendants shall pay Noblegain's costs; as between Noblegain and the 1st, 2nd, 3rd and 5th Defendants those Defendants shall have their costs in the cause; 1st,2nd,3rd and 5th Defendants awarded costs against Noblegain in the event they...