TAIHAN GLOBAL HOLDINGS LTD v. LAU SIU MING AND OTHERS

TAIHAN GLOBAL HOLDINGS LTD v. LAU SIU MING AND OTHERS

The court held that Taihan failed to prove non-compliance: the defendants produced bona fide disclosure (passbooks and statements) showing no activity or the nature of the balance as at the relevant time; any ambiguity arose from Taihan's own drafting of the order; the onus was on Taihan to establish non-compliance and it did not do so; late affirmations by Taihan were irrelevant to the compliance issue; therefore the application for judgment/strike out was dismissed and costs were awarded against Taihan with a nisi order providing indemnity taxation for costs after 5 September 2013.

Citation
TAIHAN GLOBAL HOLDINGS LTD v. LAU SIU MING AND OTHERS
Parties
Plaintiff (original Action): Taihan Global Holdings Limited; 1st Defendant (original Action): Lau Siu Ming; 2nd Defendant (original Action): Yuanzhi International Trading Company Limited; 3rd Defendant (original Action); Plaintiff (counterclaim): Winful Holdings Limited; 4th Defendant (original Action): Kar Yue (Fu Hing) Trading Company Limited; 2nd Defendant (counterclaim): Taihan Electric Wire Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 November 2013
Case Number
HCA1687/2011
Procedural Posture
Interlocutory Civil Application Concerning Disclosure and Enforcement of an Unless Order Arising From Mareva Injunction Proceedings / Chambers Hearing on Application to Strike Out/enter Judgment for Alleged Non Compliance With an Unless Order; Interlocutory Costs Determination
Outcome
Taihan's application for judgment and strike out dismissed; applications for leave to file late affirmations dismissed; costs awarded to defendants with a nisi order for indemnity costs from 5 September 2013
Legal Topics
Unless Order, Non Compliance, Relief From Sanction, Discovery, Bank Account Disclosure, Indemnity Costs
Source Language
EN
Civil Procedure Disclosure Injunctions (mareva) Costs Unless Order Non Compliance Relief From Sanction Discovery +2 more

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Parties

Taihan Global Holdings Limited

Plaintiff (original Action)

Lau Siu Ming

1st Defendant (original Action)

Yuanzhi International Trading Company Limited

2nd Defendant (original Action)

Winful Holdings Limited

3rd Defendant (original Action); Plaintiff (counterclaim)

Kar Yue (Fu Hing) Trading Company Limited

4th Defendant (original Action)

Taihan Electric Wire Company Limited

2nd Defendant (counterclaim)

Procedural Posture

Interlocutory Civil Application Concerning Disclosure and Enforcement of an Unless Order Arising From Mareva Injunction Proceedings / Chambers Hearing on Application to Strike Out/enter Judgment for Alleged Non Compliance With an Unless Order; Interlocutory Costs Determination

Legal Issues

  1. 1 Whether the 2nd and 3rd defendants failed to comply with the unless order to disclose specified bank account balances
  2. 2 Proper construction of the unless order (credit balance vs current/debit balances)
  3. 3 Admissibility and relevance of late affirmations filed by the applicant

Ratio Decidendi

The court held that Taihan failed to prove non-compliance: the defendants produced bona fide disclosure (passbooks and statements) showing no activity or the nature of the balance as at the relevant time; any ambiguity arose from Taihan's own drafting of the order; the onus was on Taihan to establish non-compliance and it did not do so; late affirmations by Taihan were irrelevant to the compliance issue; therefore the application for judgment/strike out was dismissed and costs were awarded against Taihan with a nisi order providing indemnity taxation for costs after 5 September 2013.

Court Disposition

Taihan's application for judgment and strike out dismissed; applications for leave to file late affirmations dismissed; costs awarded to defendants with a nisi order for indemnity costs from 5 September 2013

Orders

  • Taihan's application for judgment against the 2nd and 3rd defendants is dismissed
  • Applications for leave to file the 1st Georgiou and 2nd Georgiou are dismissed