Ykc v. Lmyt

Read the full judgment text of FCMC 9062/2015 on BabelCite. This Family Court judgment was delivered on 17 December 2018 before Deputy Judge K. K. PANG.

Matrimonial causes – Single Joint Expert – Valuation – Property – Company – Costs – Appointment of experts – Cost proportionality – Disposal on the papers – Mr. Ian Ng appointed for properties – Ms. Rita Lau appointed for company – Costs reserved initially

Legal issues: Appointment of SJE for landed properties · Appointment of SJE for M L Ltd

Outcome: Single Joint Experts appointed for valuation of properties and company; costs reserved.

Case No.FCMC 9062/2015[2018] HKFC 230
Court
Family Court
Date17 Dec 2018
JudgeDeputy Judge K. K. PANG
Case Document
100%Judiciary

FCMC9062/2015

[2018]HKFC230

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

MATRIMONIAL CAUSES

NUMBER 9062 OF 2015

----------------------------

BETWEEN
  YKC Petitioner
and
  LMYT Respondent

----------------------------

Coram: Before Deputy Judge K. K. PANG (disposal on the papers)

Date of Respondent Wife’s Submissions: 21 November 2018

Date of Petitioner Husband’s Submissions: 22 November 2018

Date of Respondent Wife’s Further Submissions: 6 December 2018

Date of Petitioner Husband’s Further Submissions: 7 December 2018

Date of Handing Down this Ruling: 17 December 2018

------------------------------

RULING
(Appointment of Single Joint Expert)

------------------------------


1.By the order dated 26 July 2018, it is directed that the parties shall agree the valuation of three landed properties situated in Kowloon (“Shop 9”, “MHV” and Parc Palais respectivley) and a HK Limited Company (“M L Ltd”) that was held under the names of the parties in equal share and formed in 2010, failing which single joint expert(s) (“SJE”) be agreed and appointed by all parties to prepare a single joint valuation report on the said properties and M L Ltd.  M L Ltd is the registered owner of Shop 9 and MHV.  The parties have been unable to reach agreement on the valuation.  Unfortunately, neither could they have been agreed on the appointment of SJE.  The petitioner husband (“H”) and the responsent wife (“W”) took out summonses dated 23 August 2018 for the court’s further directions on SJE expert evidence respectively.  H filed his 8th Affirmation on 23 August 2018 and W filed the 1st Affirmation of Willard Li on 23 August 2018 in support of the respective applications.  By the order dated 23 November 2018, it is further directed that each partiy do lodge a letter with the court giving one suggestion of SJE for the valuation of the landed properties and one suggestion for the valuation of the company, together with his/her C.V., estimated time for the preparation of the valuation report and estimated costs, whereby the court will give further directions on the choice of SJE pursuant to Order 38 r.4A(2).  Both parties wrote to the court pursuant to the directions dated 23 November 2018. 

2.For the valuation of the three landed properties, H suggested Mr. Chan Wing Fun Joannau (“Mr. Chan”) of BMI Appraisals Ltd (“BMI”), and W suggested Mr. Ian Ng (“Mr. Ng”) of Hong Kong Appraisal Advisory Ltd (“HKAAL”).  Upon persual of Mr. Chan and Mr. Ng’s C.V., I am totally satisfied that both of them are very experienced quantitative surveyors and well qualified to prepare the valuation report.  Mr. Chan has indicated that he needs about 14 working days for the report.  In the 1st Affirmation of Willard Li, it was said that, upon receipt of all material informations required, Mr. Ng needed about 10 working days for the report.  Mr. Chan’s fee is HK$48,000, and Mr. Ng’s fee is HK$32,000.  In light of the fact that Mr. Ng’s fee is only 2/3 of Mr. Chan’s, other things being equal, I am minded to appoint Mr. Ng as SJE for the valuation of the landed properties.  I give the parties until 28 January 2019 for the completion of the report.

3.For the valuation of M L Ltd., H suggested Mr. Lai Wing Lun (“Mr. Lai”) of RSM, and W suggested Ms. Rita Lau (“Ms. Lau”) of HKAAL.  Mr. Lai has indicated that he needs about 8 to 10 weeks for the report.  In the 1st Affirmation of Willard Li, again, it was said that, upon receipt of all material informations required, Ms. Lau needed about 10 working days for the report.  Mr. Lai’s fee is HK$270,000, and Ms. Lau’s fee is HK$30,000.  H stressed that Mr. Lai is a forensic accounting expert, while Ms. Lau is not a forensic expert and thus she may not be appropriate to be appointed as an expert.  On this note, I tend to agree with W that, given the level of Mr. Lai’s fee, his appointment is out of proportion to the relatively straightforward nature of the instant case.  M L Ltd is a mere property holding company.  I take notice that there are third party (Intervener’s) interests in the two properties held by M L Ltd.  In the present case, the Intervener’s claims against M L Ltd can be resolved by ascertaining the amount of rental income due to each of the parties to be compared against funds advance to the company by the Intervener and any funds withdrawn from the company by the parties.  I take further notice that there are disputes between the parties on the financial situations of the company, and as a result no audited reports are filed.  Ms. Lau is an experienced CPA and a member of the HKICPA.  Upon persual of Ms. Lau’s C.V., I am totally satisfied that she is well qualified to resolve the parties’ differences and to prepare the valuation report.  By reason of matters aforesaid, I am persuaded to appoint Ms. Lau as SJE for the valuation of M L Ltd.  I give the parties 6 weeks to send out the joint instructions and the necessary materials and informations, and further 10 weeks for the completion of the valuation report.

4.IT IS therefore ORDERED that:

(1)  Mr. Ian Ng of HKAAL be appointed as SJE for the preparation of the valuation report of the three landed properties;

(2)  Mr. Ng’s report be filed with court by W on or before 28 January 2019;

(3)  Ms. Rita Lau of HKAAL be appointed as SJE for the preparation of the valuation report of M L Ltd;

(4)  Ms. Lau’s report be filed with court by W on or before 8 April 2019;

(5)  The costs of the prepartion of the two SJE reports be borne by parties in equal share initially and be in the cause of the ancillary relief proceedings eventually;

(6)  The costs of the two summonses both dated 23 August 2018 be reserved;

(7)  Liberty to apply.

  (K K PANG)
  Deputy District Judge

Pauline Wong & Co., Solicitors for the Petitioner

Haldanes, Solicitors for the Respondent