Lui Sik Kuen v. Lee Suk Ling
Read the full judgment text of CACV 23/1992 on BabelCite. This Court of Appeal judgment.
1. This is an appeal by the petitioner from the decision of Judge Gould dated 18th December 1991, pursuant to leave granted by him, whereby he resolved a jurisdictional issue relating to ancillary relief consequent upon a divorce in favour of the respondent.
Cited by 1 case
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CACV000023/1992
Family law - ancillary relief following divaorce -.wife seeking to set aside a consent order making financial provision for her on the grounds of material non-disclosure - proper practice and procedure - whether application can be made in the existing proceedings or whether she must take one of the following courses (a) appeal to a higher court or (b) institute a fresh action.
Coram: Fuad, V.-P., Penlignton & Nazareth, JJ.A. Dates of Hearing: 28th and 29th may 1992 Date Judgment handed down: 19th June 1992 ---------------------- J U D G M E N T ---------------------- Fuad, V.-P.: 1. This is an appeal by the petitioner from the decision of Judge Gould dated 18th December 1991, pursuant to leave granted by him, whereby he resolved a jurisdictional issue relating to ancillary relief consequent upon a divorce in favour of the respondent. 2. The matter arose in this way. The parties (I will continue, for convenience, to call them "husband" and "wife") were married in 1972. There were three children of the family: one boy and twin girls. On 9th February 1988 the husband presented a petition for divorce. A decree nisi was granted on 19th May 1988, the court (Judge Pang) having found that the marriage had broken down irretrievably, based on the fact that the parties had lived apart for a continuous period of at least two years immediately preceding the presentation of the petition, the wife having consented to a degree being granted. 3. On the same day, Judge Pang made an order regarding, inter alia, the arrangements for the custody of the children, access to them, and their maintenance. The part of his order which concerns this appeal was in the following terms:
4. The decree nisi was made absolute on 4th July 1989. 5. On 24th July 1989 Judge Lee made an order, on the application of the husband, transferring custody of the boy to him, with access to the wife; giving him permission to take the boy permanently out of the jurisdiction and, by consent, increasing the maintenance payments for the girls. 6. The husband married again in November 1989. 7. On 13th September 1991, the wife took out a summons, supported by her affirmation, seeking the following relief:
8. On the same day, the wife issued a notice of her application in Form 8 (rule 68 and the Appendix, the Matrimonial Causes Rules). The husband filed his affirmation in opposition on 24th October 1991. 9. When the matter first came before Judge Gould, on 28th September 1991, no submissions were made about procedure or jurisdiction. He adjourned the hearing of the wife's application and ordered the husband to file an affidavit of means. Provision was made for an affidavit by the wife in reply. 10. On 11th November 1991 the solicitors acting for the husband wrote to Judge Gould's clerk in relation to that part of the wife's application which sought to set aside the lump sum order of 19th May 1988 saying that since the adjournment they had consulted counsel who had advised that the summons of 13th September 1991 was not "a valid claim to put before the court." Counsel had suggested that if the wife were seeking to set aside part of the order on the grounds of non-disclosure, she could only do so in one of two ways: she could (1) apply to the Court of Appeal for leave to appeal out of time or (2) bring a separate action in the High Court to set aside that order. The solicitors made reference to de Lasala v. de Lasala [1980] AC 546 and Robinson v. Robinson [1983] 4 FLR 102. 11. The solicitors said that they felt it would be wrong, and a waste of the family assets, to wait to raise the point at the adjourned hearing. They enclosed a draft summons asking the judge to review his decision of 28th October, accompanied by a draft notice of the application. In effect, the husband was indicating that he would be inviting the court to consider striking out that part of the summons dated 13th September 1991 by which the wife was seeking an order to set aside the lump sum award of 19th May 1988. 12. In his judgment, the judge explained that these documents were not "in acceptable form". He then stated the issue before him, and how he intended to deal with it, as follows:
13. In examining the court's jurisdiction to entertain the application to set aside, the judge gave his reasons for reaching the conclusion that a resort to rule 55 of the Matrimonial Causes Rules (which makes provision for re-hearings) was not the appropriate way to deal with the matter. I say nothing more about this part of the learned judge's decision. Neither party has submitted that those provisions could be prayed in aid and we have heard no argument on the proper scope of rule 55. 14. The judge then gave his reasons for concluding (contrary to contentions advanced on behalf of the wife) that the principles in the de Lasala and Robinson cases did apply, adding:
15. The judge went on to consider whether the expression "fresh action" was or was not synonymous with the expression "separate action", and, if I understand him correctly, he considered that there was, indeed, a difference in meaning between the two expressions. Be that as it may, this is how the judge explains his decision of with complaint is made by this appeal:
16. So far as the Hong Kong courts are concerned, the leading authority is the de Lasala case. The facts of that case are very well-known. It is only necessary for me to cite the following passage from the judgment of the Privy Council given by Lord Diplock [1980] AC, at pp. 560-1:
17. It is well settled that in matrimonial proceedings there is a duty upon the parties to make full and frank disclosure of their property and financial resources and that the court has power to set aside an order in appropriate circumstances (where it can be shown that the order would not have been made if the true facts had been known) just as it has power to set aside an order where fraud or mistake is successfully relied upon; and this is so whether or not the impugned order is made in contested proceedings after full evidence has been heard, or by. consent, after negotiations and an exchange of information between the parties, and without further inquiry by the court: see for example, Jenkins v. Livesey [1985] AC 424; and Robinson v. Robinson (Disclosure) (1983) 4 FLR 102. In the latter case, on the proper procedure, Ormrod, L.J. had this to say, at pp. 113-4:
18. With very great respect, it is not entirely clear to me what form of further proceedings the learned Lord Justice had in mind. Did he mean a fresh application in the same matrimonial suit or did he mean a new action commenced by writ in the High Court? On the one hand he cites Lord Diplock's use of the words "by bringing a fresh action to set it aside" but on the other hand he mentions the advantage that a first instance court would have by being able "to make the appropriate order which we cannot do in this court." Would a first instance court entertaining a fresh action to set aside have this power? 19. I have found the whole judgment of Ward, J. in B-T v. B-T [1990] 2 FLR 1 of great assistance. He addresses the difficulty I have ventured to raise at p.12. After citing part of the passage I have set out above from Ormrod L.J.'s judgment in Robinson, Ward, J. had this to say:
20. It certainly does riot appear that Ormrod, L.J. was seeking to detract from anything Lord Diplock had said in de Lasala in the passage he had cited. It may be that he was at pains to stress the disadvantages of the appellate route. Whatever he may have meant, it seems to me that although Lord Diplock's dictum is not to be treated as if it were a statute, nevertheless if it is to be applied without doing unacceptable violence to his language, the expression "fresh action" simply cannot embrace an application in proceedings already instituted. 21. I mention here that Mr. Gilbert Rodway, Q.C. (who did not appear for the wife below) although supporting the judge's decision, did not seek to rely upon any distinction in meaning between the epithets: "fresh action" and "separate action". Mr. Rodway submitted that the judge had taken a sensible, fair, practical and convenient course which was permitted by the authorities. Judge Gould's court was, he said, the obvious one in which to start proceedings to set aside the order now impugned. He suggested that we should not be awestruck by the use by Lord Diplock of the words "fresh action". A new action in the real sense of the word would be inconvenient and expensive. Here there were no allegations of fraud proper. No statutory provision prohibited the course suggested by the judge. The rules of practice were not so rigid as to require a separate action. 22. One of the cases Mr. Rodway relied upon was Allsop v. Allsop (1981) Fam. Law 18. He suggested that the facts here allowed Judge Gould and this court to adopt the approach of the English Court of Appeal in that case. There, in answer to his wife's application for a consent order relating to ancillary relief to be set aside and her affidavit in support, the husband swore an affidavit in which he accepted that in his earlier affidavit he had made statements which were false and in a highly material particular (about his assets). He indicated that he would not oppose his wife's application. All I would respectfully say about that case is that I agree with Ward, J.'s analysis in B-T v. B-T, at pp. 14-15, which I will not set out. Again, with great respect, I would adopt Ward, J.'s conclusion as to the effect of that case (at p.15):
23. I have to say here that I cannot accept Mr. Rodway's submission, that since the husband did not provide an affidavit of means and there was no evidence that information regarding the husband's means was made available, on the material before us we are in a position to say that it is quite plain that there has been material non-disclosure. The facts are very much in dispute (see the husband's affidavit of 24th October 1991). 24. I next turn to consider whether the consent order sought to be set aside is "final" or "interlocutory" for the purposes of the principles set out in the passage I have cited from de Lasala. For convenience, I set out the material part of the order again:
25. In my judgment, this was clearly a "final" order in so far as financial provision for the wife under s.4 of the Matrimonial Proceedings and Property Ordinance was concerned. In my view the part of the order with which we are concerned does not cease to be a "final" order because in other parts of the same order provision is made for such matters as the maintenance and custody of the children. To apply Lord Diplock's test - the court which made the order does not have a continuing power to vary its terms. I mention here that in so far as orders for lump sums are concerned, they are expressly excluded from the power to vary, given by s. 11 of the Matrimonial Proceedings and Property Ordinance, Cap. 192. 26. As regards the contention which was advanced in the court below and re-asserted before us, that de Lasala could be distinguished on the ground that there was nothing in the order which said that the wife's claims to ancillary relief for herself had been dismissed, I respectfully agree with Judge Gould's conclusions on the point (and I would remark that there is no cross-appeal on the issue):
27. Nor do I think that Mr. Rodway can gain any support for the wife's case from Brown v. Kirrage (1981) 11 Fam Law 141. There the Court of Appeal upheld the judge's decision to reject a husband's plea of res judicata in holding that the wife was entitled to make and prosecute her application for a lump sum. The husband had contended that since an application for a lump sum order had been made by her and since the record of the proceedings before the registrar made it clear that he had not thought it right to make such an order, it must be inferred that he had dismissed the wife's claim. Brandon, L.J. (as he then was) is reported to have said, at p.142:
The position in our case is very different. There is a reference to a lump sum in the order and it is expressed to be in full and final settlement of maintenance for the wife. I may mention that in my view the order as it stands, unless and until it is set aside, is indeed an impediment to the financial provision claims she makes in paragraph 2 of her summons of 13th September 1991. The order is poorly drafted but everyone concerned with the case until the appeal came before us seems to have taken the same view. It may be that when the order was made a true clean break was intended (of course, only in respect of the spouses) but, as the husband has conceded, the order cannot be read so as to preclude the wife from now advancing a property adjustment claim under s.6 of the Matrimonial Proceedings and Property Ordinance. 28. The learned judge dealt with the issues before him with painstaking care. He was anxious to save the parties time and expense and, as he saw the matter, obviate the necessity of multiple proceedings. However, I do not find it possible to distinguish de Lasala, by which authority, of course, we are bound. 29. I would therefore allow the appeal and dismiss paragraph 1 of the wife's summons. Penlington, J.A.: 30. I have had the advantage of reading the judgment of the Vice-President in draft and I agree with the conclusion he comes to that this appeal must be allowed. I do so with some reluctance and also agree with Nazareth, J.A., that the question raised here should be the subject of remedial legislation. I am however in no doubt that the dicta of Lord Diplock in de Lasala, which is binding on us, cannot be distinguished. Here the wife seeks to challenge the order, as I understand it, on the ground that it was obtained by mistake. She was not aware of her husband's substantial assets. I also have no doubt, for the reasons cogently stated by Judge Gould in his careful judgment, that it was an order which finally disposed of the issue now raised, that of maintenance for the wife. That brings it firmly within the dicta at p. 561 of de Lasala and the clear statement that the only way the order of Judge Pang can be set aside is by way of an appeal out of time or by a "fresh action". Much of the argument in de Lasala was as to whether the courts in Hong Kong should follow the English Court of Appeal decision in L v. L [1961] 3 WLR 1182, and it was argued strongly for the wife that, for a variety of reasons, they should not. However, when de Lasala finally reached the Privy Council L v. L had been approved by a full Court of Appeal in Minton v. Minton [1979] 2 WLR 31. 31. Mr. Rodway has argued strongly that the approach taken by Judge Gould to this matter is correct. This is a family matter and should be decided in the Family Division of the District Court by the procedures used there such as the filing of comprehensive affidavits. There is clearly much to be said for that view especially as it is not disputed that the wife could still apply for transfer of property - presumably the flat owned by the husband which she occupies. There is support for that in Robinson per Ormrod , L.J., at 114, though it is not easy to see what form of "proceedings at first instance" he contemplated. 32. The reasoning of Judge Gould and the arguments advanced here in support of the proposition that the summons which has been issued should be regarded as a "fresh action" have much to commend them on the basis of convenience and speed but I am satisfied that, on the authorities, particularly of de Lasala, but also Minton and Robinson, it cannot be so described for he reasons stated by the Vice-President. Nazareth, J.A.: 33. I also agree with my Lord the Vice-President. I would only add with reference to two of the authorities to which he has referred that Lord Diplock's dictum in de Lasala, that the only way open to challenge a final order on the grounds mentioned is by appeal or fresh action is so categoric that I find myself unable to contemplate that, have adopted it at page 113F of Robinson, Ormrod L.J. immediately, proceeded to disregard it. It seems to me rather, that Ormrod L.J., while accepting the law as stated, was recounting the considerable advantage of a further procedural option enabling a judge at first instance not merely to set aside the order improperly obtained, but to go on to make the appropriate order in lieu. Those advantages in the present case were convincingly identified by Judge Gould. Nevertheless the procedural option envisaged is not available under the law in its present state and while the advantages it would provide do not change that, they seem to me to call for the introduction of such an option which, I dare say, could conveniently be made by statutory provision. Fuad, V.-P.: 34. In handing down these judgments allowing the appeal, we make an order nisi that the respondent pay the costs here and below. Representation: Mr. Ian Payne (Y.L. Yeung & Co.) for the Appellant/Petitioner Mr. Gilbert Rodway, Q.C. and Ms. M. Chew (Stevenson Wong & Co.) for the Respondent |
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