Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Extraterritorial effect of foreign orders

Legal area

Court

22 Sept 1988

SOUTHRIDGE INTERNATIONAL INC. v. STANDARD CHARTERED BANK

Citation

SOUTHRIDGE INTERNATIONAL INC. v. STANDARD CHARTERED BANK
Court

Court of First Instance
Case number

HCMP1460/1988

The New York orders had no extra-territorial effect in Hong Kong and could not be invoked as enforcement of US penal or public law; however the Bank validly refused the plaintiffs' instructions because it had actual knowledge that some or all funds were tainted by insider trading and were subject to constructive trusts in equity (arising independently of US public law), and paying would render the Bank a knowing assistant and potentially liable; therefore the originating summonses were dismissed.
22 Sept 1988

NANUS ASIA COMPANY INC. v. STANDARD CHARTERED BANK

Citation

NANUS ASIA COMPANY INC. v. STANDARD CHARTERED BANK
Court

Court of First Instance
Case number

HCMP1459/1988

The bank's primary contractual obligation to obey customer instructions is displaced where the bank has actual knowledge giving rise to equitable proprietary rights (constructive trusts) in favor of third-party beneficiaries; New York orders purporting to enforce US penal/public law have no extraterritorial effect in Hong Kong, but the existence of constructive trusts in equity (independent of US public law) entitled the bank to refuse payment; accordingly the plaintiffs' originating summonses were dismissed.