ZIG ZIG BOUTIQUE LTD v. WONG CHIU LAM AND ANOTHER

ZIG ZIG BOUTIQUE LTD v. WONG CHIU LAM AND ANOTHER

The court found the defendants discharged the burden of proving the default judgment was irregular because the writ was not brought to their notice at the material time; accordingly the judgment was set aside as of right. Exercising the residual discretion to impose reasonable terms (having regard to the defendants' conduct and delays, particularly the 1st defendant's conduct), the court ordered D1 to pay HK$250,000 and D2 to pay HK$50,000 into court by 28 February 2013, failing which the respective judgments shall stand; on payment the defendants must file defences and the plaintiff may reply; costs to be in the cause.

Citation
ZIG ZIG BOUTIQUE LTD v. WONG CHIU LAM AND ANOTHER
Parties
Plaintiff: Zig Zig Boutique Limited; 1st Defendant: Wong Chiu Lam; 2nd Defendant: Lo Ting
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
1 February 2013
Case Number
DCCJ2630/2011
Procedural Posture
Civil Action (contract/property) / Appeal to Judge in Chambers From Master's Order (decision Dated 1 February 2013)
Outcome
Appeal allowed in part; original Master's order varied and default judgment set aside on conditions as specified.
Legal Topics
Setting Aside Default Judgment, Service of Process, Irregular Judgment, Conditions on Setting Aside, Costs
Source Language
EN
Civil Procedure Contract Property Law Bankruptcy Procedure Setting Aside Default Judgment Service of Process Irregular Judgment Conditions on Setting Aside +1 more

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Parties

Zig Zig Boutique Limited

Plaintiff

Wong Chiu Lam

1st Defendant

Lo Ting

2nd Defendant

Procedural Posture

Civil Action (contract/property) / Appeal to Judge in Chambers From Master's Order (decision Dated 1 February 2013)

Legal Issues

  1. 1 Whether the default judgment was irregular and should be set aside
  2. 2 Whether the defendants had notice of the writ when served at the address in the PSPA
  3. 3 Whether the court should exercise its residual discretion to impose terms when setting aside an irregular judgment and what terms are reasonable

Ratio Decidendi

The court found the defendants discharged the burden of proving the default judgment was irregular because the writ was not brought to their notice at the material time; accordingly the judgment was set aside as of right. Exercising the residual discretion to impose reasonable terms (having regard to the defendants' conduct and delays, particularly the 1st defendant's conduct), the court ordered D1 to pay HK$250,000 and D2 to pay HK$50,000 into court by 28 February 2013, failing which the respective judgments shall stand; on payment the defendants must file defences and the plaintiff may reply; costs to be in the cause.

Court Disposition

Appeal allowed in part; original Master's order varied and default judgment set aside on conditions as specified.

Orders

  • Judgment against 1st Defendant (Wong Chiu Lam) is set aside on condition that he pay HK$250,000.00 into court on or before 28 February 2013, failing which the Judgment against him shall stand
  • Judgment against 2nd Defendant (Lo Ting) is set aside on condition that she pay HK$50,000.00 into court on or before 28 February 2013, failing which the Judgment against her shall stand