Transunion Ltd v. Hongkong Taijin Industry Ltd and Others

Read the full judgment text of HCA 1353/2019 on BabelCite. This High Court CFI judgment was delivered on 20 September 2019.

1. On 25 July 2019, P obtained on an ex parte basis a Proprietary/ Mareva injunction against D1, together with a banker’s book order against HSBC in respect of a specific account D1 maintained with it (“ D1’s HSBC A/C ”). The basis of P’s claim, as set out in the affirmation of Lawrence Tsong dated 24 July 2019, was that P was the victim of an email/impersonation fraud. Fraudsters of unknown identity impersonated the Group President and Chief Executive Officer of P and managed to deceive P into

Cites 1 case

Case No.HCA 1353/2019[2019] HKCFI 2437
Court
High Court CFI
Date20 Sep 2019
Judge
Case Document
100%Judiciary

HCA 1353/2019

[2019] HKCFI 2437

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO 1353 OF 2019

______________

BETWEEN    
  TRANSUNION LIMITED Plaintiff

and

  HONGKONG TAIJIN INDUSTRY LIMITED 1st Defendant
  MEIBAOYING TRADE CO., LIMITED 2nd Defendant
  STAR UNION TRADING DEVELOP LIMITED 3rd Defendant
  HO YU XIN TRADE LIMITED 4th Defendant
  HONG KONG JUFENGLI TRADE CO., LIMITED 5th Defendant
  KA MA TECHNOLOGY CO., LIMITED 6th Defendant
  LIU DONGJIE 7th Defendant
  MERIT TOP ENTERPRISES CORPORATION 8th Defendant
  YANG KUNLING 9th Defendant
  HONG KONG YUGUI TRADING CO., LIMITED 10th Defendant
  HK BEAUTY FOREST INTERNATIONAL LIMITED 11th Defendant
  YANGHUA TECHNOLOGY CO., LIMITED 12th Defendant
  WANG XIN HK TECHNOLOGY CO., LIMITED 13th Defendant
  MISS DONG YING 14th Defendant
  HONGKONG RIQING TRADING LIMITED 15th Defendant
  HK HENGXUAN TRADE LIMITED 16th Defendant
  HONGKONG HUAER ELECTRONIC TRADE LIMITED 17th Defendant
  BOREN TRADE LIMITED 18th Defendant
  SINOIF TRADING LIMITED 19th Defendant
  DEEP TRADE LIMITED 20th Defendant
  BILLION PERFORMANCE LIMITED 21st Defendant
  TENGYUN TRADING CO., LIMITED 22nd Defendant
  SH XUYI TRADE LIMITED 23rd Defendant
  EASYSALE INTERNATIONAL TRADE CO., LIMITED 24th Defendant
  ZALL HOLDINGS COMPANY LIMITED 25th Defendant
  WU LEUNG LEE MAN YICK JEWELLERY CO 26th Defendant
  HK FMEI TRADE CO., LIMITED 27th Defendant
  JAPAN MITSUI INVESTMENT COMPANY LIMITED 28th Defendant
  HUANG WEIQUN 29th Defendant
  CHENGZI TRADING CO., LIMITED 30th Defendant
  LONG RICH (HK) SHIPPING CO., LIMITED 31st Defendant
  HONG KONG WPT TECHNOLOGY CO., LIMITED 32nd Defendant
  SSC EXOTICS CO., LIMITED 33rd Defendant
  HONGKONG JIANPING TRADING LIMITED 34th Defendant
  GOLDENLUX CO., LIMITED 35th Defendant
  MORE PROFIT INTERNATIONAL HOLDINGS LIMITED 36th Defendant
  HONGKONG CHENGYUAN TRADING LIMITED 37th Defendant
  HK WEALTH ELECTRONIC COMMUNICATION CO., LIMITED 38th Defendant
  NI CHANGYU 39th Defendant

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Before: Hon K Yeung J in Chambers
Date of Hearing: 20 September 2019
Date of Decision: 20 September 2019

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D E C I S I O N

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1.On 25 July 2019, P obtained on an ex parte basis a Proprietary/Mareva injunction against D1, together with a banker’s book order against HSBC in respect of a specific account D1 maintained with it (“D1’s HSBC A/C”). The basis of P’s claim, as set out in the affirmation of Lawrence Tsong dated 24 July 2019, was that P was the victim of an email/impersonation fraud. Fraudsters of unknown identity impersonated the Group President and Chief Executive Officer of P and managed to deceive P into remitting funds in the total amount of US$17.8m into D1’s HSBC A/C. That Injunction has been continued.

2.Armed with the information obtained from the banker’s book order, P obtained on 13 September 2019 from Lisa Wong J on an ex parte basis a 2nd Injunction against D2 to D39 as second‑tier recipients of the funds (Proprietary/Mareva against all except D8 and D21, and Mareva only against D8 and D21).  Discovery in aid has also been ordered.  Another set of banker’s book orders has further been obtained.

3.Today, P seeks continuation of the 2nd Injunction against D2 to D6, D10 to D13, D15 to D20, D22 to D24, D27 to D28, and D30 to D38 (the “1st Batch of Ds”).  The balance of the remaining Ds is to be dealt with on a later return date (18 October 2019) due to issues of service.

4.I have read the 2nd affidavit of Liu Kai Wan Gabrielle.  Despite the mistake on the face of the Summons (ie it was wrongly addressed to all Ds as opposed to just the 1st Batch of Ds), I am satisfied that the Amended Writ, the 2nd Injunction and all related documents have validly been served upon the 1st Batch of Ds.

5.D11 “sort of” appears this morning.  I said sort of as a Mr Gong who claims to be a director of D11 appears.  I explain to him the background, and the need for him to obtain leave from a Master before he can appear for D11.

6.D36 is represented by Mr Wong, a solicitor.  Mr Wong does not object to the continuation of the 2nd Injunction.  He requests 7 days from the date hereof to effect the discovery in aid.  Ms Yuen, counsel for P, agrees to that.  Any variation in relation to legal expenses which Mr Wong indicates that he intends to make can be made first of all over correspondence between the parties.

7.None of the other Ds amongst the 1st Batch of Ds appears.

8.One complication concerns D33.  When the 2nd Injunction was sought against it, the application was proceeded with on the basis that the relevant transfer to D33 was made to an account maintained by it in HK.  It was subsequently discovered that it was not, and that the transfer was in fact made to the Shanghai branch of the Bank of Communications.  P properly notified Lisa Wong J before the 2nd Injunction was sealed.  I have considered the implications of this revelation.  Given the proprietary nature of P’s claim, and on the facts of this case, I am satisfied that the validity of the 2nd Injunction remains intact.

9.I have considered the evidence.  I am satisfied that P has demonstrated merits to the sufficient threshold to support the 2nd Injunction. Risk of dissipation necessary for the Mareva part of the 2nd Injunction can clearly be inferred.  Balance of convenience is in favour of continuation of the 2nd Injunction.  Save the case of D36 in respect of which the time for compliance of the discovery in aid is extended to 7 days from the date here, I order that the 2nd Injunction be continued against the 1st Batch of Ds until further order, in terms of the Summons.

(Keith Yeung)
Judge of the Court of First Instance
High Court

Ms Sharon Yuen, instructed by Kobre & Kim, for the Plaintiff

The 2nd to 6th, 10th to 13th, 15th to 20th, 22nd to 24th, 27th to 28th, 30th to 35th, 37th to 38th Defendants were not represented and did not appear

Mr Nathan Wong (Solicitor Advocate) of Haldness, for the 36th Defendant