Read the full judgment text of HCA 252/2020 on BabelCite. This Court of First Instance judgment was delivered on 3 April 2020 before K Yeung J.
Civil procedure – Mareva and proprietary injunctions – continuation of ex parte injunctions – fraud tracing – email and impersonation fraud – serious issues to be tried – good arguable case – risk of dissipation – balance of convenience. The Plaintiff, Wismettac Asian Foods, Inc., was deceived by an email and impersonation fraud into remitting US$10,295,000 to two first tier recipient companies, ZL Trade Limited and Jin Hongsheng Trading Co. Through tracing, part of the JHS funds were identified as having been transferred to the four defendants in HCA 252/2020 as second tier recipients, and part of the ZL funds and further JHS funds were identified as having been transferred via other second tier recipients to the six defendants in HCA 384/2020 as third tier recipients. Whether the ex parte proprietary and Mareva injunction granted by Wilson Chan J in HCA 252/2020 should be continued on an inter partes basis. Whether the ex parte proprietary and Mareva injunction and Bankers' Records Order granted by G Lam J in HCA 384/2020 should be continued on an inter partes basis. Held, in HCA 252/2020: the Plaintiff demonstrated not only serious issues to be tried but also a good arguable case, risk of dissipation could clearly be inferred, and the balance of convenience favoured continuation; the injunction was continued against all four defendants until further order or 3 months after the conclusion of the trial, whichever is earlier. Held, in HCA 384/2020: applying the same test, the injunction was continued against D2 to D6 and the order was made per the amended draft; the injunction against D1 was by consent not continued upon its undertaking. Service on all defendants was confirmed satisfactory. Mr Byron Chiu, instructed by Zhong Lun Law Firm, appeared for the Plaintiff in both actions; Mr Simon Lau, of Lau & Ngan Solicitors LLP, appeared for the 1st Defendant in HCA 384/2020; the remaining defendants were not represented and did not appear.
Legal issues: Continuation of ex parte proprietary and Mareva injunction against 2nd tier recipients in HCA 252/2020 · Continuation of ex parte proprietary and Mareva injunction and Bankers' Records Order against 3rd tier recipients in HCA 384/2020
Outcome: In HCA 252/2020, the application for continuation of the proprietary and Mareva injunction against all four defendants was granted, with the injunction to continue until further order or 3 months after the conclusion of the trial, whichever is earlier. In HCA 384/2020, the injunction against D1 was by consent not continued upon its undertaking, while the injunction against D2 to D6 was continued and the order was made per the amended draft.
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