WEI XING v. WILLWIN DEVELOPMENT (ASIA) CO LTD AND ANOTHER

WEI XING v. WILLWIN DEVELOPMENT (ASIA) CO LTD AND ANOTHER

Leave refused because the draft statement of claim was demurrable for lack of material facts and particulars and was inconsistent with prior findings in the 797 Judgment; additionally, any realistic recovery was minimal relative to anticipated costs and the applicant would not fund or indemnify the company, so it was not in the company's interests to pursue the claim.

Citation
[2020] HKCFI 739
Parties
Plaintiff: Wei Xing; 1st Defendant: Willwin Development (Asia) Company Limited; 2nd Defendant: Wei Wen
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 May 2020
Case Number
HCMP1104/2018
Procedural Posture
Statutory Derivative Action Under Companies Ordinance S733 / Leave Application (originating Summons)
Outcome
Originating summons dismissed; leave to bring derivative action refused
Legal Topics
Statutory Derivative Action, Leave to Bring Derivative Claim, Breach of Fiduciary Duty, Breach of Confidence, Account of Profits, Security for Costs, Costs Orders
Source Language
EN
Company Law Civil Procedure Equity Commercial Litigation Statutory Derivative Action Leave to Bring Derivative Claim Breach of Fiduciary Duty Breach of Confidence +3 more

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Parties

Wei Xing

Plaintiff

Willwin Development (Asia) Company Limited

1st Defendant

Wei Wen

2nd Defendant

Procedural Posture

Statutory Derivative Action Under Companies Ordinance S733 / Leave Application (originating Summons)

Legal Issues

  1. 1 Whether the intended claim raises a serious issue to be tried under s733
  2. 2 Whether it is in the interests of the company (WW) that leave be granted
  3. 3 Whether the draft statement of claim contains sufficient particulars

Ratio Decidendi

Leave refused because the draft statement of claim was demurrable for lack of material facts and particulars and was inconsistent with prior findings in the 797 Judgment; additionally, any realistic recovery was minimal relative to anticipated costs and the applicant would not fund or indemnify the company, so it was not in the company's interests to pursue the claim.

Court Disposition

Originating summons dismissed; leave to bring derivative action refused

Orders

  • Originating summons dismissed and leave refused
  • Costs nisi that Plaintiff Wei Xing shall pay the costs of Willwin Development (Asia) Company Limited and Wei Wen, to be assessed by way of gross sum assessment