GRADE ONE LTD AND OTHERS v. CHOW CHIN YUI, ANGELA AND OTHERS

GRADE ONE LTD AND OTHERS v. CHOW CHIN YUI, ANGELA AND OTHERS

The Court held the new evidence was capable of showing the plaintiffs' liabilities may have been discharged by a US$3,000,000 loan arranged in Oct 2020 and that there was a reasonable prospect of proving the summary judgment may have been obtained by fraud through suppression; conditions 2 and 3 of Ladd v Marshall (materiality and causation) were satisfied and the reasonable diligence limb could be relaxed in the circumstances, therefore leave to adduce fresh evidence was granted, the summary judgment set aside and unconditional leave to defend was ordered.

Citation
[2025] HKCA 1051
Parties
1st Plaintiff: Grade One Limited; 2nd Plaintiff: Surplus Gain Global Limited; 3rd Plaintiff: Lau Wang Chi, Barry; 1st Defendant: Chow Chin Yui, Angela; 2nd Defendant: Chan Sai On, Bill; 3rd Defendant: Cachet Asset Management Limited; 4th Defendant: Cachet Multi Strategy Fund SPC; 5th Defendant: High Point Properties Limited
Court
Court of Appeal
Jurisdiction
Hong Kong
Judgment Date
25 November 2025
Case Number
CACV371/2022
Procedural Posture
Civil Appeal (appeal From High Court Summary Judgment) / Court of Appeal Hearing on Leave to Adduce Fresh Evidence and Appeal From Order 14 Summary Judgment
Outcome
Summary judgment set aside; leave to adduce fresh evidence granted; unconditional leave to defend counterclaims granted; matter remitted for trial on triable issues
Legal Topics
Summary Judgment, Fresh Evidence on Appeal, Fraudulent Suppression of Evidence, Loan Discharge, Guarantee, Order 14 Rule 3(1), Ladd V Marshall Principles, Discovery and Cross Examination, Costs
Source Language
EN
Civil Procedure Contract Equity Fraud Summary Judgment Fresh Evidence on Appeal Fraudulent Suppression of Evidence Loan Discharge +5 more

Case Brief

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Parties

Grade One Limited

1st Plaintiff

Surplus Gain Global Limited

2nd Plaintiff

Lau Wang Chi, Barry

3rd Plaintiff

Chow Chin Yui, Angela

1st Defendant

Chan Sai On, Bill

2nd Defendant

Cachet Asset Management Limited

3rd Defendant

Cachet Multi Strategy Fund SPC

4th Defendant

High Point Properties Limited

5th Defendant

Procedural Posture

Civil Appeal (appeal From High Court Summary Judgment) / Court of Appeal Hearing on Leave to Adduce Fresh Evidence and Appeal From Order 14 Summary Judgment

Legal Issues

  1. 1 Whether new evidence discloses a triable issue that plaintiffs' liabilities under the Facility Agreement and Supplemental Deed were discharged by a US$3,000,000 loan
  2. 2 Whether the summary judgment was obtained by fraud through conscious and dishonest suppression of the discharge
  3. 3 Whether the Ladd v Marshall reasonable diligence requirement should be relaxed for admission of fresh evidence on appeal alleging fraud

Ratio Decidendi

The Court held the new evidence was capable of showing the plaintiffs' liabilities may have been discharged by a US$3,000,000 loan arranged in Oct 2020 and that there was a reasonable prospect of proving the summary judgment may have been obtained by fraud through suppression; conditions 2 and 3 of Ladd v Marshall (materiality and causation) were satisfied and the reasonable diligence limb could be relaxed in the circumstances, therefore leave to adduce fresh evidence was granted, the summary judgment set aside and unconditional leave to defend was ordered.

Court Disposition

Summary judgment set aside; leave to adduce fresh evidence granted; unconditional leave to defend counterclaims granted; matter remitted for trial on triable issues

Orders

  • Set aside Cheng J's summary judgment dated 12 August 2022 in favour of the 3rd and 4th defendants' counterclaims
  • Grant leave to adduce the new evidence in the 1st and 2nd New Evidence Summonses