Peace Mark (Holdings) Ltd (in Liquidation) and Another v. Chau Cham Wong Patrick and Others

HCA 2371/2009

[2018] HKCFI 659

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 2371 OF 2009

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Before: Hon Anthony Chan J in Chambers

Date of Hearing: 20 March 2018

Date of Decision: 20 March 2018

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D E C I S I O N

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1.This specific discovery application undisputedly involves confidential information arising from the settlement of the Plaintiffs’ claim and recoveries from other parties in respect of the subject matters of these proceedings. The court has been informed that there are 3 such settlements.

2.Quite sensibly, the Plaintiffs have offered to provide the relevant information to the 4^th, 5^th, 9^th to 12^th Defendants (Defendants) in the form of an affidavit.

3.Mr Man for the Defendants has rightly accepted that the issue of discovery is ultimately a matter of discretion for the court.

4.Subject to expanding on what has been offered by the Plaintiffs, and with the safeguards proposed in paragraphs 21(a) to (d) of pages 131-132 of the Bundle in place, the provision of an affidavit by the Plaintiffs to provide the information sought by the Defendants is sufficient (a) to answer the Defendants’ concern over double recovery by the Plaintiffs and (b) the reliability of the information to be provided.  In my view, this is a just and expedient manner to dispose of this application.

5.The affidavit to be provided by the Plaintiffs should contain the following information :

(1) The number of settlements reached in relation to the subject matters of these proceedings;

(2) Whether HCA 1490/2009 is the subject matter of one such settlements;

(3) The material terms of each settlement in respect of the recoveries or payments recovered or to be recovered by the Plaintiffs, with the confidential information redacted;

(4) The amount of money or any benefits recovered or to be recovered under each settlement.

6.The affidavit is to be provided by the Plaintiffs within 7 days from today.  In addition, it is only right that the 2^nd and 3^rd Defendants be informed of the recoveries made by the Plaintiffs from these settlements because of their interest in the same.

7.Given the absence of the 2^nd and 3^rd Defendants, I shall leave the matter to the Plaintiffs’ judgment in respect of the manner in which the 2^nd and 3^rd Defendants are to be so informed.

8.I shall hear the parties on costs.

Ms Rachel Lam, instructed by Hogan Lovells, for the 1^st and 2^nd Plaintiffs

Mr James Man, instructed by Kennedys, for the 4^th, 5^th, 9^th to 12^th Defendants