Lai Yiu Mun Susanna v. Tsang Kai Choy Paul and Others
Read the full judgment text of HCA 142/2017 on BabelCite. This High Court CFI judgment was delivered on 5 March 2019.
1. On the 6 th day of the trial (ie 5 March 2019), I acceded to the plaintiff’s oral application for recusal. These are my reasons. I must say that what happened is most unusual, unexpected and unfortunate.
Cited by 6 cases · Cites 6 cases
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HCA 142/2017 [2019] HKCFI 642 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE ACTION NO 142 OF 2017 ____________
____________ Before: Deputy High Court Judge Paul Lam SC in Court Dates of Hearing: 26 – 28 February, 1, 4 – 5 March 2019 Date of Decision: 5 March 2019 Date of Reasons for Decision: 8 March 2019 __________________________________ REASONS FOR DECISION __________________________________ Introduction 1.On the 6th day of the trial (ie 5 March 2019), I acceded to the plaintiff’s oral application for recusal. These are my reasons. I must say that what happened is most unusual, unexpected and unfortunate. What this case is about 2.The plaintiff (“P”) is a Christian, and a supporter of All Saint’s Cathedral of Sheng Kung Hui (“the Church”). The 1st defendant (“D1”) was the pastor of the Church who had retired in 2005. The 2nd defendant (“D2”) is his wife. The 3rd defendant (“D3”) is the younger sister of D2. 3.The parties used to have a very close relationship. It is not in dispute that, after D1 retired on 1 January 2005 (or even shortly before that), Ds moved to live in a property owned by P at 6/F, No 60 Village Road, Happy Mansion, Hong Kong (“the Property”). Ds did not pay any rent. There is a dispute whether Ds had paid some of the management fees and Government rents. More importantly, by an assignment dated 26 June 2009, the Property was transferred to Ds (“the Transfer”). Although on the face of the documents the Transfer was made pursuant to a sale and purchase agreement, it is common ground that Ds had not paid any purchase price. Ds have continued to live in the Property since then. On the other hand, it is also common ground that P had also paid medical and miscellaneous expense for Ds, as well the repair costs of a property in the US owned by Ds. P claims that the total amount was about HK$620,000 whereas Ds claim that that it was only around HK$325,000. 4.The relationship between the parties broke down as a result of incidents which were no longer in issue. Apparently, these incidents prompted P to reflect on what had happened in the past.She takes the view that she has been deceived by Ds’ misrepresentations into, firstly, allowing Ds to live in the Property for free in the first place, and making the Transfer subsequently; and secondly, paying the medical and miscellaneous expenses for Ds. She claims that Ds have made various misrepresentations to the effect that the amount of D1’s retirement funds would not be sufficient to support Ds’ live after D1’s retirement. Among other things, Ds said to her from time to time in Cantonese “夠住唔夠食,夠食唔夠住”. P also claims that Ds have broken an oral warranty that they would return the Property to her if she needs it. 5.In contrast, Ds deny that they have made any misrepresentation or committed any wrongdoing. They maintain that the Transfer as well as the payment of medical and miscellaneous expenses were unconditional gifts given by P to them. Their case is that P simply regretted her earlier generosity towards them. 6.What the court needs to decide is whether P is entitled to claim back the Property, as well as the medical and miscellaneous expenses, from Ds. How the issues should be resolved depends very much on the credibility of P on the one hand, and D1 and D2 on the other hand. Although D3 had made a witness statement, I was told at the beginning of the trial that she would not give evidence. Progress of the trial up to 4 March 2019 7.The trial (with 8 days reserved) commenced before me on 26 February 2019. By the afternoon on 4 March 2019 (ie the 5th day of the trial) and before the case was adjourned, P had already completed her case: she and two other witnesses had finished giving evidence; and D1 was in the course of being cross-examined. It appeared that his evidence would finish soon; and D2, being the last witness, would then give evidence. 8.It was virtually certain that all evidence would and could have been completed by 7 March 2019. I have given directions for the parties to file written closing submissions, and reserved 19 March 2019 to hear oral closing submissions. There is no doubt that the trial had already reached a very advanced stage when it was adjourned on 4 March 2019. The Email 9.In the early morning on 5 March 2019, when I, as usual, checked my emails, I discovered an email sent to my chambers’ email address at 1:07:10 am on 5 March 2019 (“the Email”). The sender (“the Sender”) is a barrister and a door-tenant of my set of chambers, but she has ceased active practice for a long time. I have known her for a long time even though we are not close friends. We only met occasionally. I cannot recall where and when I last saw or talked to her. 10.The Email is entitled “church matters”. For the present purpose,I need to go into the content of the Email:
11.I cannot describe how surprised I was when I saw the Email. I did not reply to it at all. The application for recusal 12.When the trial resumed at 10 am on 5 March 2019 (ie the 6th day of the trial), I immediately informed that parties that I had received the Email, and provided copies thereof to them. I told the parties my relationship with the Sender. I indicated that I would ignore the Email. I granted a short adjournment to enable counsel to take instructions from their clients. After the adjournment, Ms Lau, appearing for P, applied for an order that I should recuse myself from continuing to hear the case. 13.I heard oral submissions from Ms Lau (with Mr Fong) and also Ms Wong who appeared for Ds. They provided me with relevant authorities and further submissions after the lunch adjournment. I am very grateful to their assistance. 14.After considering the matter carefully and anxiously, and in order not to waste further time and costs, I declared that I had decided to accede to the application (with written reasons for my decision to be handed down as soon as possible). I also gave directions for the future conduct of these proceedings. Why I have decided to recuse myself 15.There is no suggestion of actual bias. The question is whether the Email will result in apparent bias. The relevant legal principles (summarized by Zervos J (as he then was) in Komal Patel v Chris Au [2016] 1 HKLRD 328 at 333 – 339, §§6 – 20) are not in dispute. The apparent bias test may be stated as follows:
16.In Tang Yau Keung v Tang Choi Yau [2014] 2 HKLRD 940 at 943 – 944, §§10 – 13, Deputy Judge Eugene Fung SC adopted a two-stage approach in deciding whether he should recuse himself because of improper disclosure of without prejudice correspondence which he had read. At the first stage, the question is whether, subjectively, the judge considers that he is disabled from fairly continuing with the case. But the subjective decision of the judge is inconclusive as there are circumstances, in which whatever the subjective feelings of the judge in question, he cannot continue with the case without there being a real possibility or a real danger of there being seen to be, by a fair-minded and informed observer, an unfair trial. The second stage is, in essence, the application of the apparent bias test. 17.I must confess that, initially, I felt reluctant to abort the trial having regard to the advanced stage it had reached, and the time and costs that had already been spent. I was worried and concerned that, if I acceded to the application, there would be an inevitable delay in these proceedings,which was most undesirable in view of the age of P, D1 and D2 as well as the fact that their credibility would depend on their ability to recollect material events which took place many years ago. I was also worried about the additional costs that parties would need to incur. I believed and was confident that I would be able not to allow the Email to influence how I was going to decide on the case. However, on reflection, I am just human: I could be wrong, and I may well have overrated myself. More importantly, Ms Lau reminded me that a judge might be affected by matters that he should ignore unconsciously (In re Medicaments and Related Classes of Goods (No 2) [2001] 1 WLR 700 at 728H – 729, §§95 – 96). As Le Pichon JA held in Superb Quo Ltd v Lee Yuen Cheung Co Ltd & ors, HCMP 29/2011 (14 February 2011, unreported), §14, “Subconscious bias operates subtly and imperceptibly. The process could be said to be insidious.” It is, of course, impossible for me to predict whether I would be affected by the Email subconsciously. I believe this is an important reason why a judge’s subjective feeling cannot be conclusive, and why the judge must apply the apparent bias test objectively and faithfully. 18.The apparent bias test requires the judge to look at the matter from the viewpoint of a “reasonable, fair-minded and well-informed observer”. As Kwan JA (dissenting) held in Superb Quo, §§45 – 46, such an observer should be a member of the public who is neither complacent nor unduly sensitive or suspicious; and such an observer is the sort of person who always reserves judgment on every point until he has seen and fully understood both sides of the argument, and his approach must not be confused with that of the person who has brought the complaint. The test is objective in nature. It requires the judge, being the target of the complaint, to approach the matter with the requisite measure of detachment no matter how hard it may be in practice. 19.I agree with Ms Wong that the fair-minded observer “is to be taken to understand that the judge has sworn an oath to do justice”, and is prepared to assume that the judge will abide by his oath and do his best to do justice independently without being influenced by any extraneous considerations (Falcon Private Bank Ltd v Borry Bernard Edouard Charles Ltd (2014) 17 HKCFAR 281 at 292, §30). An informed observer should also be taken to be aware of the system and how it operates (R (Barclay) v Lord Chancellor (No 2) [2014] 1 WLR 415, §65). Hence, I also agree with Ms Wong that the ability of a judge to put some facts (eg evidence ruled inadmissible, unsolicited correspondence from strangers) out of mind when reaching a decision (sometimes described as “judicial compartmentalization”) is a well-known part of the system which an informed observer would know of. Having said that, it is essential to bear in mind what Langstaff J said in Begraj v Heer Manak Solicitors & ors [2014] ICR 1020 at p 1030, §36:
He said further in §37:
20.It is clear that each case must depend on its own facts. I agree with Ms Wong that “the true test required all the circumstances having a bearing on apparent bias to be ascertained and assessed” and that “the party seeking recusal is required to ‘articulate the relevant reasoning by which the fair-minded observer would attribute a level of prejudgment justifying recusal’ (Falcon Private Bank Ltd v Borry Bernard Edouard Charles Ltd (2014) 17 HKCFAR 281 at 292, §30).” 21.The judgment of the High Court of Australia in Ebner v Official Trustee (2000) 205 CLR 337 provides useful guidance on how the apparent bias test should be applied. At p 345, §7, the majority of the Court held that:
More importantly, they held in §8:
22.It is necessary to discern the meaning of “bias” in the present context. In §23 (at p 348), they held that:
23.In Webb v The Queen (1994) 181 CLR 41 at 74, Deane J identified four distinct, though overlapping, categories of case involving disqualification by reason of appearance of bias: interest; conduct; association; and extraneous information. In Ebner v Official Trustee at p 349, §24, the court acknowledged that such a categorization provides a convenient frame of reference. What Deane J said is this:
24.I shall first identify what has been, or could have been, said might lead me to decide the case other than on its legal and factual merits. Returning to the Email in this case, what is in issue is “association” and “extraneous information”. As to “association”, the relevant factors are the personal background of the Sender, and her relationship with me as well as the parties. As to “extraneous information”, the relevant consideration is,of course, the content of the Email itself. 25.I turn to consider whether there are logical connections between these factors and the feared deviation from the course of deciding the case on its merits. My analysis is as follows:
26.Considering all relevant circumstances as a whole, I was driven to the conclusion that a reasonable, fair-minded and well-informed observer would conclude that there a real possibility (not probability) that I would be influenced subconsciously by extraneous considerations arising out of the content of the Email due to my association with the Sender. 27.Ms Wong, understandably, reminded me of the serious adverse consequences for the parties and the administration of justice in terms of inconvenience, costs and delay that would be caused if I allowed the application. As I said earlier, I shared all her worries and concerns. However, I believe the answer lies in what Mummery LJ said in AWG Group Ltd v Morrison [2006] 1 WLR 1163 at 1166G–H, §6:
And he held at p 1172, §29:
28.There may well be very exceptional circumstances in which the adverse consequences of a recusal may prevail. In Begraj v Heer Manak Solicitors at p 1033, §44, Langstaff J referred to Article 2.5 of the internationally accepted Bangalore Principles of Judicial Conduct:
29.In this case, another judge may be assigned to conduct the trial afresh. Although P and Ds are elderly, and I had been told by D1 that his health is not good, and that D3 is suffering from Parkinson’s disease, there are no urgent circumstances supporting that there would be a serious miscarriage of justice if I allowed the application. 30.After all, it is crucial to bear in mind the rationale behind the principles concerning apparent bias. As the High Court of Australia held in Ebner v Official Trustee at p 344, §6:
31.What is at stake is the rule of law. I cannot emphasize more how important it is, at this time in Hong Kong, and indeed as is always the case, to maintain and enhance public confidence in the judiciary and the judicial system as a whole. Public confidence depends on the public’s perception of how the system works in practice. This is why both the reality and the appearance are equally important. Hence, justice must not only be done, but also be seen to be done. “Justice” in this context, properly understood, is not about the outcome of a case; it is most likely that only one of the parties in a litigation will believe that justice has been done by the result of the case. “Justice” is about the process by which the court reaches its decision. One of the most important, if not the most important,elements in making the process just and fair is that the case must be decided by an independent and impartial tribunal in accordance with only the law and the evidence properly adduced before it: nothing more, nothing less. If, in any particular case, a reasonable, fair-minded and well-informed person will take the view that there is a real possibility that the judge would be biased or that the trial would be unfair, it is reasonable to infer that a significant number of members of the public, who become aware of what has happened (through the parties, their legal representatives, the mass media or otherwise) will share the same feeling. They would have a reasonable doubt in their minds whether justice will indeed be done. Such doubt will inevitably undermine the general public’s confidence in the judiciary and the judicial system. It will be difficult to remove such doubt once it is formed: the judge’s reassurance that he will deal with the case independently in accordance with the law and evidence only might be seen as an unconvincing self-serving statement; and subconscious bias is, by nature, incapable of being eliminated by the judge’s reassurance. Hence, such doubt must be avoided, insofar as possible, at all costs. 32.Owing to the paramount importance of the rationale behind the apparent bias principle, it is necessary to err on the side of prudence. In Superb Quo, §19, Le Pichon JA cited with approval, firstly, what Mummery LJ said in AWG Group Ltd at 1167E, §9:
And, secondly, what the English Court of Appeal held in Locabail (UK) Ltd v Bayfield Properties Ltd [2000] QB 451 at 480H, §25:
33.Applying the well-established and indisputable legal principles,and taking into account all submissions made by both parties, for reasons stated above, I decided that I should recuse myself from continuing to hear the case. As I said when I announced my decision, this was a difficult decision (perhaps even more than the judgment that I had to make on the merits of the case). I was upset and frustrated because, for reasons entirely out of my control and expectation, I had lost the opportunity of doing what I wished to do the most ie to discharge the duty of helping the parties to resolve their disputes as soon as practicable. Conclusion and order 34.As a result of my decision, I ordered that a trial de novo be fixed to be heard before another bilingual judge with 8 days reserved in consultation with counsel’s diary. 35.As to the costs of the aborted trial, the parties agreed that they should be costs in the cause of the trial de novo. 36.As to the costs of the application for recusal, P asked for costs (on the ground that costs should follow the event) whereas Ds submitted that they should form part of the costs of the aborted trial. P submitted that, but for Ds’ opposition, the time spent on the application would be much less. The application was not caused by anything done by Ds. The grounds on which Ds opposed the application were not frivolous, or plainly unreasonable. Even if there was a joint application for recusal, it would not be a rubber-stamp formal exercise, and I would have to consider the application carefully and, probably, in more or less the same way as what I have done. In practice, I take the view the bulk of the costs incurred on 5 March 2019 (eg counsel’s daily refreshers) would have to be incurred in any event. As a matter of discretion, I shall order that the costs of this application be part of the costs of the aborted trial ie they would also be in the cause of the trial de novo. 37.After I announced my decision, Ms Wong sought leave to appeal against my decision. I invited her to wait for my reasons for decision first. To avoid any unnecessary delay in case Ds elect to appeal against my decision, both parties agreed that I may give appropriate directions to deal with Ds’ potential application for leave to appeal expeditiously. Accordingly, I direct that:
Ms Lorinda Lau and Mr Forest Fong, instructed by Alvin Cheng & Rosaline Choy, for the plaintiff Ms Carol Wong, instructed by Chan, Wong & Lam, for the 1st to 3rd defendants | ||||||||||||||||||||||
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