KP FINANCIAL SERVICES LTD v. ETERNALUCK LYD AND ANOTHER

KP FINANCIAL SERVICES LTD v. ETERNALUCK LYD AND ANOTHER

The court declined to order formal pleadings to be exchanged between KPFS and AH&Co because Order 16 r1(1)(c) third party notices are intended to identify issues precisely so they can be tried without the defendant making an immediate claim against the third party; succinct statements or an agreed statement of issues are appropriate where necessary; formal pleadings are unnecessary and potentially incongruent when no present claim is made against the third party.

Citation
KP FINANCIAL SERVICES LTD v. ETERNALUCK LYD AND ANOTHER
Parties
Plaintiff/third‑party Claimant: KP Financial Services Limited; Third Party/solicitors to KPFS: Alan Ho & Company; Defendants/counterclaimants: Various defendants (borrowers/chargors)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 October 2017
Case Number
HCA2525/2015
Procedural Posture
Civil Third‑party Proceedings Under Order 16 RHC / Interlocutory Case Management Hearing on Application for Directions (pleadings Exchange)
Outcome
Court refused KPFS's and AH&Co's applications to order exchange of formal pleadings between KPFS and AH&Co; directed restoration of summonses for further hearing; made costs order nisi in favour of KPFS for the hearing on 27 September 2017
Legal Topics
Third Party Notice (order 16), Pleadings, Forgery and Authority of Attorneys, Discovery and Witness Statements, Costs
Source Language
EN
Civil Procedure Property Law Contract Professional Negligence Evidence Third Party Notice (order 16) Pleadings Forgery and Authority of Attorneys +2 more

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Parties

KP Financial Services Limited

Plaintiff/third‑party Claimant

Alan Ho & Company

Third Party/solicitors to KPFS

Various defendants (borrowers/chargors)

Defendants/counterclaimants

Procedural Posture

Civil Third‑party Proceedings Under Order 16 RHC / Interlocutory Case Management Hearing on Application for Directions (pleadings Exchange)

Legal Issues

  1. 1 Whether the court should order KPFS and AH&Co to exchange pleadings in third party proceedings issued under Order 16, rule 1(1)(c)
  2. 2 Whether issues in the third party notices are sufficiently pleaded and arise out of the pleadings in the main actions
  3. 3 Whether KPFS may rely on third party procedure to bind AH&Co by determinations on authenticity/validity of loan documents without presently pleading a negligence claim against AH&Co

Ratio Decidendi

The court declined to order formal pleadings to be exchanged between KPFS and AH&Co because Order 16 r1(1)(c) third party notices are intended to identify issues precisely so they can be tried without the defendant making an immediate claim against the third party; succinct statements or an agreed statement of issues are appropriate where necessary; formal pleadings are unnecessary and potentially incongruent when no present claim is made against the third party.

Court Disposition

Court refused KPFS's and AH&Co's applications to order exchange of formal pleadings between KPFS and AH&Co; directed restoration of summonses for further hearing; made costs order nisi in favour of KPFS for the hearing on 27 September 2017

Orders

  • Decline to order exchange of statements of claim/defence (formal pleadings) between KPFS and AH&Co
  • Summonses restored for further hearing with 1 hour reserved unless parties (including defendants) agree directions and submit a consent summons