Hong Kong Case Law: Decisions & Judgments

Topic

Double derivative action

Legal area

Court

14 Jul 2021

BLUESUN CAPITAL LTD v. TEWOO GROUP FINANCE NO 3 LTD AND OTHERS

Citation

[2021] HKCFI 2040
Court

Court of First Instance
Case number

HCA1428/2020

The default judgment was irregular and must be set aside because it awarded relief (direct payment to the plaintiff) that was not pleaded after the plaintiff abandoned the only pleaded basis for such relief; additionally the plaintiff materially failed to disclose contested issues going to standing and validity of service, and the defendants have a real prospect of success on key defences (including that the plaintiff did not hold >25% of outstanding Bonds and did not satisfy indemnity/prefunding preconditions).
17 May 2018

HUINONG DELTA INVESTMENTS LTD AND OTHERS v. CCCC FINANCIAL LTD AND OTHERS

Citation

[2018] HKCFI 952
Court

Court of First Instance
Case number

HCA2814/2016

Although the plaintiffs' central pleadings contained unexplained inconsistencies and mis‑statements that justified striking out the statement of claim as an abuse of process, the court found no evidence of an ulterior motive, deliberate deception or other special or unusual features sufficient to justify an award of indemnity costs; accordingly the variation application was dismissed, costs follow the event and are to be paid by the defendants, and a certificate for two counsel was refused.
6 Nov 2017

HUINONG DELTA INVESTMENTS LTD AND OTHERS v. CCCC FINANCIAL LTD AND OTHERS

Citation

HUINONG DELTA INVESTMENTS LTD AND OTHERS v. CCCC FINANCIAL LTD AND OTHERS
Court

Court of First Instance
Case number

HCA2814/2016

The court held the central allegations of the statement of claim were irreconcilable with contemporaneous documentary evidence and witness testimony (notably the 16.06.16 and 17.06.16 emails and Yuan's own evidence) such that the pleadings, verified by a statement of truth, were so defective and constituted an abuse of process; accordingly the writ and statement of claim were struck out under Order 18 r 19(1)(d) and the court's inherent jurisdiction and the amendment application became academic.
8 Nov 2010

TSANG YUE JOYCE v. STANDARD CHARTERED BANK (HONG KONG) LTD AND ANOTHER

Citation

TSANG YUE JOYCE v. STANDARD CHARTERED BANK (HONG KONG) LTD AND ANOTHER
Court

Court of First Instance
Case number

HCA2488/2009

Plaintiff's pleaded loss was loss of Ideal and the Trust; she acted as attorney for Ideal so any cause of action belongs to Ideal/the trustee. No pleaded collateral contract to give her a personal cause of action. Plaintiff lacked standing and failed to show any applicable exception permitting a direct or double derivative action; the proper remedy is an administration action in the Cayman Islands to compel the trustee to sue. Accordingly the amended statement of claim was plainly unsustainable and was struck out and the action against the 1st defendant dismissed.
28 Jan 2010

HUI YIN SANG AND ANOTHER v. TSOI PING KWAN AND ANOTHER

Citation

HUI YIN SANG AND ANOTHER v. TSOI PING KWAN AND ANOTHER
Court

Court of First Instance
Case number

HCA392/2008

The court refused leave to amend to add the pleaded fraudulent misrepresentation allegations because the material relied upon (Cheng's statement) did not establish a prima facie case of fraud or reasonably credible support; the court refused leave for personal trust claims and estoppel by convention because they are legally and factually inconsistent with the derivative/double derivative claims, are bound to fail given separate corporate personality and the reflective loss doctrine, and offend O.18 r.12A where inconsistent cases are not pleaded in the alternative with reasonable grounds; the…
23 Mar 2007

WADDINGTON LTD v. CHAN CHUN HOO THOMAS AND OTHERS

Citation

WADDINGTON LTD v. CHAN CHUN HOO THOMAS AND OTHERS
Court

Court of Appeal
Case number

CACV134/2006

The Court allowed the re-amendment and granted leave to join intermediate subsidiaries: where joinder may be necessary and there are no substantive objections and no material prejudice or delay, it is preferable to add parties and permit amendments at appellate level to enable the action to proceed expeditiously.

Hong Kong Case Law

BLUESUN CAPITAL LTD v. TEWOO GROUP FINANCE NO 3 LTD AND OTHERS

HUINONG DELTA INVESTMENTS LTD AND OTHERS v. CCCC FINANCIAL LTD AND OTHERS

HUINONG DELTA INVESTMENTS LTD AND OTHERS v. CCCC FINANCIAL LTD AND OTHERS

TSANG YUE JOYCE v. STANDARD CHARTERED BANK (HONG KONG) LTD AND ANOTHER

HUI YIN SANG AND ANOTHER v. TSOI PING KWAN AND ANOTHER

WADDINGTON LTD v. CHAN CHUN HOO THOMAS AND OTHERS