Wym v. Lyw and Another
Read the full judgment text of FCMC 14114/2015 on BabelCite. This Family Court judgment was delivered on 28 August 2019 before His Honour Judge G. Own.
Matrimonial Causes – Ancillary Relief – Third Party Intervention – Joinder Directions – Stay of Proceedings – Consent Order – Partition Ordinance – TL v. ML Procedure – Whether Intervener can set aside Joinder Directions and stay Family Court proceedings pending High Court determination – Intervener failed to show sufficient cause or change of circumstances to set aside consent order – Joinder Directions stand – Costs awarded to Petitioner and Respondent – Time extended for compliance – Penal Notice endorsed
Legal issues: Setting aside Joinder Directions and stay of proceedings
Outcome: Intervener's Summons dismissed; Joinder Directions stand; time extended for compliance.
Cites 10 cases
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FCMC 14114/2015 [2019] HKFC 221 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION MATRIMONIAL CAUSES NO. 14114 OF 2015 -----------------
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------------------------- D E C I S I O N ------------------------- Background 1.The Petitioner is the Wife (“W”) and the Respondent is the Husband (“H”). The Intervener is a licenced money lender registered under the Money Lenders Ordinance, Cap.163. 2.On 4 November 2015, W filed a Petition for divorce relying on the fact of unreasonable behaviour. There are 2 children of the family both of them are over 18 years of age. In the Notice of Application for Ancillary Reliefs, W sought monetary reliefs and also property orders in respect of the matrimonial home which I will refer to it as “FMH”. 3.At all material times the FMH was registered under the sole name of H as the legal owner. 4.On 5 January 2017, the Decree Nisi was granted. Questions of ancillary relief and costs were adjourned to 24 January 2017. 5.On 25 July 2017, the Decree Absolute was granted. 6.By a Summons dated 29 August 2017 (“Joinder Summons”), GFL as proposed intervener sought to be joined in these proceedings and for directions on the filing of pleadings in respect of the FMH of which W sought property orders against H. It is common ground that such steps were taken for determination of respective parties’ beneficial interests in the FMH in line with the commonly called “TL v. ML” procedure (see TL v. ML [2006] 1 FLR 465). 7.By an Order dated 18 October 2017 (“Joinder Order”) which was granted by this Court upon the said Joinder Summons issued by GFL and with the consent of H and W, GFL was joined as the Intervener and directions were also granted as sought. Those directions which are relevant to the present application are set out as paragraphs 3 to 7 and 9 in the Joinder Order which are repeated as follows :-
The HCMP 499/2016 proceedings 8.Back on 3 March 2016, the Intervener commenced proceedings in the High Court as Plaintiff against H as Defendant seeking recovery of outstanding loan due under a Deed of Mortgage dated 11 June 2015 (“the Deed”). These proceedings were commenced under Order 83A (Money Lenders’ Actions) and Order 88 (Mortgage Actions) of the Rules of the High Court, Cap.4. 9.On 28 September 2016, leave was granted by Master Lai in the High Court in HCMP 499/2016 for W to be joined as 2nd Defendant in the proceedings. The Intervener’s claim for money judgment against H (who was named as the 1st Defendant) was adjourned to 14 October 2016. The Intervener’s claim for possession of the FMH be adjourned sine die with liberty to restore. 10.On 14 October 2016, judgment was entered by Master Lai in the High Court in HCMP 499/2016 in favour of the Intervener against H (as 1st Defendant) for the sum of HK$1,989,829.68 together with interest on the sum of HK$1,764,719.20 at the rate of 24% per annum (with a rate of HK$1,160.36 per day) from 23 July 2016 until payment (the “HCMP money Judgment”). 11.On 2 June 2017, leave was granted to amend the Intervener’s action to include Sections 2, 3 & 6 of the Partition Ordinance, Cap.352. Accordingly, further reliefs were added which includes, inter alia :-
12.On 31 July 2017, the HCMP 499/2016 proceedings (as amended) were adjourned sine die with liberty to restore. The application by the Intervener 13.On 8 January 2018, the Intervener issued the present Summons seeking to set aside the Joinder Directions and to stay these proceedings pending determination of HCMP 499/2016. 14.The Intervener referred to the case of Yuen Yin v. Yuen Mei Ling & Others (HCA No.1000/2017), which is a decision handed down by Master Elaine Liu on 7 November 2017 (that is to say, around 3 weeks after the Joinder Directions were granted by this Court) whereby the learned Master refused a stay of the High Court proceedings before her and ordered the Defendants in that case to file their defence. 15.It is the Intervener’s stance that since the subject matter of dispute in these proceedings and HCMP 499/2016 is the beneficial ownership of the FMH; on grounds of convenience and better case management, it should be conclusively determined by the High Court rather than by this Court by way of a preliminary issue. Furthermore, this would also remove any doubts as to whether the Family Court has jurisdiction to grant order for sale under the Partition Ordinance, Cap.352 which the Intervener is seeking in respect of the FMH. The Petitioner’s (W’s) opposition 16.W’s grounds of opposition are set forth in the Affirmation of her solicitors as the grounds are essentially legal or procedural in nature rather than any factual objections. 17.In short, W opposed the setting aside of the Joinder Directions since they were sought for by the Intervener, negotiated at the hearing on 18 October 2017 between respective parties’ legal representatives and eventually agreed and accepted by W and H. It was then endorsed and became an Order of the Court. 18.The Intervener’s sudden change of stance by not complying the Joinder Directions which were asked for by them but now sought a stay of these proceedings is inconsistent with their intention of joining in these proceedings. Had W been aware of the Intervener’s present stance to stay these proceedings, W would not have consented to the Joinder Summons. The Intervener’s change of stance was unreasonable, inconsistent and to a certain extent, misled W and H in giving their consent, and even misled this Court in granting the Joinder Directions. 19.Moreover, the Intervener knowing full well that they have in mind of seeking order for sale under the Partition Ordinance, Cap.352, they ought to have known whether the Family Court had jurisdiction to make orders under the Partition Ordinance, Cap.352 when they chose to issue the Joinder Summons. 20.As to the jurisdictional point, W has no issue that the Family Court, being a division of the District Court, has jurisdiction to make orders under the Partition Ordinance, Cap.352 since the Ordinance provides that “Court” includes the District Court. As a further contention, W considers that the Intervener does not have the “locus” to seek order for sale under the Partition Ordinance, Cap.352 for the fact that they are not “party/person interested” as defined under the Partition Ordinance, Cap.352. 21.From a practical perspective, W would be seeking order for sale of the FMH under the Matrimonial Proceedings and Property Ordinance, Cap.192 (“MPPO”) and agreed to the net proceeds of sale be paid into the Family Court pending further disposal. This would afford the Intervener a chance to seek reliefs out of the net proceeds of sale deposited in the Family Court since the Intervener’s interest would be a monetary one in light of the HCMP 499/2016 money Judgment already obtained as opposed to claiming a share in the beneficial ownership of the FMH. The Respondent’s (H’s) opposition 22.H filed his 2nd Affirmation in opposition. 23.In short, H’s grounds of opposition are that the Intervener should have complied with the Joinder Directions sought by them which had been agreed to by his lawyers and W’s legal team. It was his wish that after the joining of the Intervener, the matter could be moved forward as quickly as possible. He considered the Joinder Directions are fair to him because at least it would keep the action moving forward. 24.H agreed to transfer all his interests in the FMH to W for settlement of W’s ancillary reliefs. He also agreed to the outstanding debt owed to the Intervener under the HCMP 499/2016 money Judgment. There is also another debt owed to a company called The One Property Credit Express Limited in another court case under DCCJ No.1010/2016 where Judgment had not yet been entered. 25.The fact that he is the registered legal owner of the FMH prevented him from applying for public housing and he had remained “homeless”. The FMH was used and occupied by W. The sudden and drastic change of stance of the Intervener now to seek setting aside the Joinder Directions created delay for the disposal of W’s ancillary reliefs against him. H had agreed to transfer all his interests in the FMH to W for her ancillary reliefs. This would mean that upon transfer he would be stepping out the arena leaving the competing claims between W and the Intervener to be further adjudicated by the Court, be it in the Family Court or elsewhere, without affecting his right to seek public housing. 26.H deposed his age is now 75 and suffering from cervical myelopathy. Despite his age, he had lost the capacity to work as the function of his right forearm and right hand are seriously impaired. He badly need speedy conclusion of these proceedings which had now been delayed by the Intervener’s sudden change of stance to seek setting aside and not complying with the Joinder Directions. The Court’s Views 27.As there is no factual dispute in the present application, I will consider the Intervener’s Summons from the legal and procedural perspective against the prevailing practice for resolution of disputes over matrimonial finances; in particular, where there are third party involved. 28.I will start with the case of Yuen Yin v. Yuen Mei Ling & Others (supra) relied upon heavily by the Intervener and some other authorities, only so far as they are relevant, cited by Counsel Mr. Tsang for the Intervener. 29.The Yuen Yin case is a Master’s decision from the High Court. I am minded to say it does not assist Intervener’s application for the following reasons :-
30.The cases of Uplink Finance Limited v. Lee Sze Tai & Others (unreported DCMP No.794/2016) and Law Chun Wai v. Chu Sauk Har [2016] 1 HKLRD 224 both deal with the rights of legal charge/legal mortgagee to seek for order for sale or partition of landed properties. This is not the issue before this Court. With respect, I fail to see how the question of sale or partition could come into the picture before the issue of beneficial interests (if any) of the Intervener, if any, over the FMH was determined by this Court or otherwise agreed. With respect, citing these cases at this stage is purely “putting the cart before the horse”; if not a sham argument for the present application on setting aside Joinder Directions and stay of proceedings. 31.The cases of LWYA v. KYW & others (CACV No.151/2013) and LLP v. LWYA & others (CACV No.152/2013) were included in the Intervener’s Counsel Mr. Alvin Tsang’s bundle of authorities. These cases simply affirming the procedure under TL v. ML that disputes between a spouse and a third party as to beneficial interests of property can be adjudicated in ancillary relief proceedings. At paragraph 30 of the Judgment it was said :-
32.Intervener’s Counsel Mr. Alvin Tsang had not been able to say how these cases assist his client’s present application for setting aside the Joinder Directions or for a stay of these divorce proceedings. 33.The next case of Leung Wing Yi Asther v. Kwok Yu Wah (2015) 18 HKCFAR 605, a Court of Final Appeal decision where the TL v. ML procedure for determination of third party interests was reaffirmed. At paragraph 29 of the Judgment, it was said :-
34.There are a number of other cases where Intervener’s Counsel Mr. Alvin Tsang referred to in his 21-page written submissions. The cases are :
35.I am minded to say not each and every case cited are of relevance and importance. I will only go to those cases which are worth mentioning and when necessary in the following paragraphs. 36.Intervener’s Counsel Mr. Alvin Tsang sought to argue that at the time when the Joinder Directions were granted, that is at the hearing on 18 October 2017, there was no guidance about what were “extraordinary” cases when the TL v. ML guidelines should be departed from, nor was there a case involving both ancillary relief proceedings and a related High Court action. Thus it was reasonable for the Intervener to proceed to seek the Joinder Directions in order to resolve the disputes in the family court proceedings. 37.I do not agree with Counsel Mr. Alvin Tsang. With respect, such contention is a complete red herring. The Intervener was at all material times legally represented. With the benefit of legal advice, it was the Intervener who took out the Joinder Summons and sought for directions in line with the TL v. ML procedure. Had the Intervener formed the view that there could or might have “extraordinary” cases which would or could be exempted or departed from the TL v. ML procedure, or the current situation that they are now facing might be one of those “extraordinary” cases so to speak, the Intervener should have applied for Court’s directions or guidance and not to seek those TL v. ML type of Joinder Directions. It is wrong for the Court to allow the Intervener to “retract” from their original position under the disguise that the decision in Yuen Yin (supra) only came to light after the Joinder Directions were granted on 18 October 2017. It is also wrong for the Intervener to be able to say the decision in Yuen Yin (supra) posed a change of circumstances justifying their setting aside application. 38.I have already decided that the Yuen Yin case (supra) does not assist the Intervener. Putting the Intervener’s case to the highest that even if Yuen Yin is applicable, it is trite that development in case law could never be said or accepted as a change of circumstances to support any setting aside application or variation. 39.Moreover, the Joinder Directions were granted upon the parties’ consensus and embodied in a consent order of the Court which had been sealed and perfected. Unless a consent order was obtained under one or more of those established grounds for setting aside, such as fraud, duress or misrepresentation, the legal effect and impact of it could not be vitiated purely because of a wrong decision or bad choice. According to the records, all parties were legally represented at the hearing on 18 October 2017 when the Joinder Directions were granted. The Intervener was represented by another Counsel Mr. Kaiser Leung. The hearing started from 11:56 am until 12:23 pm. It was then stood down until after lunch and resumed at 1:31 p.m. and then continued until 1:41pm when a handwritten consent summons seeking for the Joinder Directions to be granted was presented to the Court. Given such circumstances, the consent order must stand and given its full effect. 40.Intervener’s Counsel Mr. Alvin Tsang referred to the case of Lit Wing Yee v. Tang Cheuk Lun [2018] 2 HKLRD 227 where His Lordship Louis Chan held that the Family Court in determining ancillary reliefs had no power to deal with issues about liabilities of one party to the marriage to the other based on a debt, damages in personal injuries or trust. Having read the case in full, I believe it does not apply to the present scenario. At this moment, this Court was not asked to make orders to direct any party to pay off his or her debts or liabilities. The Intervener’s present application is for setting aside the Joinder Directions dated 18 October 2017 and to stay the family court proceedings. I fail to see how the Intervener could “link” their present application with this Court having to make orders for repayment of debts or liabilities. 41.Having said, this brings me to the other submission made at paragraphs 21 and 45 of Intervener’s Counsel 21-page written submissions dated 16 November 2018. This Court was invited to make a specific ruling about whether the Family Court has jurisdiction and power to make orders under the Partition Ordinance, Cap.352. 42.With respect, I fail to see the basis of such submission for the following reasons. 43.First, according to the marginal notes of the present Summons dated 8 January 2018[2], it was taken out under Rule 3 of the Matrimonial Causes Rules, Cap.179A; O.1, r.2(2) & (4), O.1B, r.1(2)(e) & (l) of the Rules of the High Court, Cap.4A, and/or the inherent jurisdiction of the Court. There was no reference to any provisions of the Partition Ordinance, Cap.352 whereby reliefs or directions under the Ordinance was sought. 44.Secondly, even in the reliefs sought within the terms of the present Summons dated 8 January 2018, there was no reference to the applicability or non-applicability of the Partition Ordinance, Cap.352. 45.Thirdly, the reference to the Partition Ordinance, Cap.352 first appeared at paragraph 5 of the 3rd Affirmation of Cheng Steven John[3] filed in support of the present Summons dated 8 January 2018 where he said :-
46.It is clear that the Intervener, or at least the lawyer Mr. Cheng, was stating their views from the perspective of convenience on the basis that an order for sale have to be made under the Partition Ordinance, Cap.352. In my view, it is wrong to first assert a positive case that an order for sale would have to be made under the Partition Ordinance, Cap.352 and then raise an issue over this Court’s jurisdiction under the asserted position and to seek a ruling in the way as it is now being sought by Counsel Mr. Alvin Tsang. 47.I noticed that even in the HCMP 499/2016 proceedings, the reliance on the Partition Ordinance, Cap.352 was only brought into the scene by way of a subsequent amendment made with leave granted by Master Lai on 2 June 2017[4], which was 8 months after the HCMP money Judgment was obtained[5], and 7 months before issuing the present Summons dated 8 January 2018[6]. In my view, had there been any doubt on the part of the Intervener as to the proper venue for exercising jurisdiction under the Partition Ordinance, Cap.352, they should and could have clarified it before issuing the Joinder Summons on 29 August 2017[7]. 48.Although it is open for the Intervener to seek recovery of the HCMP money Judgment by way of Foreclosure or Order for sale of the FMH as opposed to issuing a Writ of Fieri Facias, and this is in fact what had happened when the Intervener amended the reliefs sought in HCMP 499/2016 proceedings 8 months after the HCMP money Judgment was obtained by bringing in the Partition Ordinance, Cap.352, it is plainly wrong, inequitable and unjust if the Intervener could now take advantage of their amended reliefs (that is, by way of sale under the Partition Ordinance, Cap.352) as a ground for setting aside the Joinder Directions obtained 4 months later on 18 October 2017. When the Joinder Summons was issued on 29 August 2017, the Intervener already had in mind of reliance upon the Partition Ordinance, Cap.352. 49.Nonetheless, what had happened was that not only had the Interveners issued the Joinder Summons on 29 August 2017, they had then pursued it to the fullest extent on 18 October 2017 and obtained directions from this Court with consensus of all parties. Thus, it is fundamentally wrong and inequitable for the Intervener to be able to turn everything around now and fall back to start raising doubts and questions over the jurisdictional aspect of this Court under the Partition Ordinance, Cap.352, and to make it a ground for setting aside the Joinder Directions and staying these proceedings. 50.There are references to the law about ordering stay of proceedings[8] and the case of Fok Chun Yue Benjamin v. Fok Chun Wan Ian [2015] 2 HKLRD 212. I have nothing to add save and except to highlight that whether a stay should be imposed is ultimately a matter of discretion depending on the circumstances of the case before the Court. 51.As to the legal position for variation of a consent order, reference was made by Counsel Mr Alvin Tsang to the case of Leung Yee v. Ng Yiu Ming [2001] 1 HKLRD 309 where Hon Woo JA found :
52.It is the Intervener’s position that the Joinder Directions are essentially case management and thus could be set aside if circumstances so require notwithstanding that they were embodied in a consent order. Whilst I agree this is the legal position, the ultimate question is whether the Intervener could show any change of circumstances or sufficient cause that the Joinder Directions need not be complied with. Conclusion 53.Given careful consideration, I find against the Intervener. The Intervener failed to come up with any legitimate reasons or sufficient cause that this Court should not determine beneficial interests under the TL v. ML procedure and/or in appropriate cases grant order for sale of the FMH under the Matrimonial Proceedings and Property Ordinance, Cap.192. 54.Since W is the party seeking ancillary reliefs against H on the FMH and had consented to the net proceeds of sale of the FMH be deposited into this Court pending resolution of the Intervener’s beneficial interests (if any), there is no room for the Intervener to contend that their position would be prejudiced when W’s and their beneficial interests in the FMH are to be determined by this Court under the TL v. ML procedure which in fact was the Intervener’s original position. 55.For all the above reasons, I dismiss the Intervener’s Summons dated 8 January 2018. 56.The Joinder Directions dated 18 October 2017 do stand. 57.In light of the delay for compliance of the Joinder Directions dated 18 October 2017 caused by the present application, I now extend the time stipulated under paragraphs 3, 4, 5, 6 and 7 of the Joinder Directions for the same period of time thereunder respectively but counting from the date of this Decision. 58.To facilitate the progress of these proceedings, I also ordered that a penal notice be endorsed. Costs 59.Given the fact that the Intervener lost completely on the application, I decided that it is fair and reasonable for costs to follow the event. 60.I ordered that the Intervener do pay to W (Petitioner) and H (Respondent) the costs of and occasioned by the Summons dated 8 January 2018; including all costs reserved, to be taxed if not agreed. H’s (Respondent’s) own costs be taxed in accordance with Legal Aid Regulations. 61.I also grant Certificate for Counsel. 62.This is a costs order nisi which will become absolute if no application to vary it is made within 14 days from the date of this Decision. Orders 63.I now grant the following Orders :-
Other Matters 64.At the last hearing, H’s Summons dated 26 March 2018 was adjourned sine die with liberty to restore pending determination of this application. Following this Decision, H’s solicitors may wish to restore the said Summons for further disposal. 65.Last but not least, I wish to thank all parties’ legal representatives and Counsel for their valuable assistance to this Court.
Mr Henry L.W. Fung instructed by Messrs. Jal N. Karbhari & Co., Solicitors for the Petitioner Miss Leung Ki Hin, Constance of Messrs. Leung Kin & Co., Solicitors for the Respondent Mr. Alvin Tsang instructed by Messrs. J. Chan & Lai, Solicitors for the Intervener [1] Court of Appeal judgment, [30], citing with approval TL v ML [2006] 1 FCR 465, [34] and [37] [2] TB: pages 4-6 [3] TB at page 23 [4] TB at page 136 [5] HCMP 499/2016 Judgment dated 14 October 2016 [6] TB at pages 4-6 [7] TB at pages 1-3 [8] See paragraphs 23 to 26 of Counsel’s written submissions | |||||||||||||||||||||||||
Cases cited in this judgment
Further hearings and rulings under FCMC 14114/2015