Cn v. Ytw
Read the full judgment text of FCMC 10370/2017 on BabelCite. This Family Court judgment was delivered on 16 July 2020 before His Honour Judge Herbert Au-Yeung.
Divorce – Jurisdiction – Substantial connection – Forum non conveniens – Matrimonial Causes Ordinance – Petitioner failed to establish substantial connection with Hong Kong – Beijing Court more appropriate forum – Petition dismissed for want of jurisdiction – Costs order nisi against Petitioner
Legal issues: Substantial connection with Hong Kong · Forum non conveniens
Outcome: Amended Petition dismissed for want of jurisdiction.
Cites 11 cases
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FCMC 10370/2017 [2020] HKFC 146 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION MATRIMONIAL CAUSES NO 10370 OF 2017 ________________________ BETWEEN
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________________________ D E C I S I O N ________________________ THE APPLICATION 1.By amended summons filed on 12 September 2019, the Respondent applied to dismiss the Petitioner’s Amended Petition filed on 11 September 2019 for want of jurisdiction, or to stay these proceedings in favour of the People’s Court of Dongcheng District, Beijing, PRC (“the Beijing Court”) on the ground of forum non conveniens. 2.With the consent of both parties, the Summons is dealt with by way of paper disposal. THE PETITION AND AMENDED PETITION 3.The Petitioner initially filed her Petition herein on 10 August 2017. At that time, it was her case that Hong Kong court has jurisdiction over the Petition because she was domiciled in Hong Kong. 4.However, pursuant to leave granted on 29 August 2019, the Petitioner has filed an Amended Petition, in which she no longer maintained that she was domiciled in Hong Kong. Rather, she asserted that she had a substantial connection with Hong Kong at the date when the Petition was filed. 5.In compliance with the requirement imposed by rule 9(9) of the Matrimonial Causes Rules (Cap.179A)[1], the Petitioner stated in the Amended Petition the facts on the basis of which it is alleged that there was such substantial connection with Hong Kong as follows:
JURISDICTION The law 6.Section 3(c) of the Matrimonial Causes Ordinance (Cap.179) (“the Ordinance”) provides that the court shall have jurisdiction in proceedings for divorce under the Ordinance if either of the parties to the marriage had a substantial connection with Hong Kong at the date of the petition or application. 7.The Court of Appeal has provided valuable guidance on the meaning of “substantial connection” in its Judgment in ZC v CN (Divorce: jurisdiction) [2014] 5 HKLRD 43. Because of the importance of this Judgment, I set out the relevant guidance in full below:
Discussion 8.As mentioned above, the Petitioner only relied on 5 categories of factual matters in support of her assertion that she had a substantial connection with Hong Kong. I will consider these matters in turn below. 9.However, before I do so, I should make it clear that while the Petitioner has in her Affirmations referred to matters which, she alleged, would establish that the Respondent has also had a strong tie to Hong Kong, this court would not consider whether the Respondent had any substantial connection with Hong Kong at the time when the Petition herein was filed, for the Respondent’s connection with Hong Kong, if any, was not relied on to establish jurisdiction of the Hong Kong court in the Amended Petition. Indeed, Mr. Chan for the Petitioner has not referred to any of those matters in his written submissions. 10.I would also emphasise that, when considering whether the Petitioner has established her substantial connection with Hong Kong, this court would not simply focus on the factors in the family context. It should be borne in mind that under section 3(c) of the Ordinance, it would be adequate if either party to the marriage has a substantial connection with Hong Kong. This necessarily implies that there would be situation where only one party has such a connection. This matter should particularly be reiterated in the present case because it is common ground that the parties have separated for some years already before the Petition was filed herein[2]. 11.I now turn to the matters relied on by the Petitioner. 12.Firstly, it was stated that the Petitioner is a holder of a Hong Kong Identity Card, has obtained permanent residency in Hong Kong and has treated Hong Kong as her home. Further, it was alleged that she had no HuKou or identity card in the Mainland. 13.While it is true that the Petitioner has already obtained permanent resident status in Hong Kong at the time of the filing of the Petition on 10 August 2017, it is undisputed that she had never lived in Hong Kong as such until November 2017 (i.e. after the commencement of these proceedings) and that, on the Petitioner’s admission[3], she had only stayed in Hong Kong on average for 16 days per year from September 2007 until the filing of the Petition in 2017. She had only stayed for a small number of days each time she visited Hong Kong before August 2017. Therefore, it cannot be said that Hong Kong was the Petitioner’s home when these proceedings were commenced. This is a crucial matter to be taken into account. No matter how genuine (or how long) it had been on the part of the Petitioner to plan to move to Hong Kong permanently, this plan would not assist her until she had put her intention into action. The position is the same even if, as the Petitioner alleged, she had very good reasons not to come to live in Hong Kong earlier. 14.Neither do I think the absence of a HuKou or identity card in the Mainland would assist her. The question here is whether the Petitioner had any substantial connection with Hong Kong. In my view, the cutting of connection with the Mainland (if the renunciation of HuKou can be viewed as such) per se would not establish such a connection between the Petitioner and Hong Kong. 15.Secondly, the Petitioner stated that she had come to Hong Kong regularly on business trip since 1990. 16.In support of her case, the Petitioner has set out her long employment history since 1990. 17.It should be emphasized that the relevant time of “substantial connection” is the time when the petition was filed at the court (i.e. 10 August 2017). It is therefore unhelpful at all to look too far back in history. 18.In any event, as the Immigration Department records show, the Petitioner had only stayed in Hong Kong for an average of around 15 to 16 days per year in the period between July 2007 and August 2017. 19.Thirdly, the Petitioner alleged that the 8A Flat was the matrimonial home of the parties, and that she had paid for utilities and dealt with various matters in relation to the 8A Flat. Further, she had lived in the 8A Flat with her daughter all along. 20.I should say at once that I do not accept that the 8A Flat could be regarded as the matrimonial home of the parties at all, as it has been shown by records of the Immigration Department that the parties had only been in Hong Kong at the same time for 4 to 7 days in the period between 2008 and 2012, and they had not been in Hong Kong together in 2007 nor since 2013. 21.As for the Petitioner’s evidence that she had paid for management fees and utilities for the 8A Flat, I accept, for the purpose of this application, that she did pay towards such fees and utilities for some periods between 2007 and 2017, though not for all the periods as she claimed by reference to the receipts which she produced, since it is evident that she was not in Hong Kong on some of the dates of such receipts, for example, on 5 December 2012[4], 21 April 2013[5], 25 September 2013[6], 13 May 2015[7] and 1 July 2015[8]. 22.I would not take into account the Petitioner’s complaint of water leakage, because the complaint was only made for the first time in December 2017[9], which was around 4 months after the commencement of the proceedings herein. 23.Neither would I accept that the Petitioner had purchased electrical appliances on 27 May 2015[10] and 28 May 2015[11] for use in the 8A Flat as alleged, because she was not even in Hong Kong on those days. 24.As to the Petitioner’s allegation that she had been living in the 8A Flat with her daughter, I have already referred to her admission that she only moved to live in Hong Kong in November 2017. On the other hand, there is no evidence on the time when her daughter moved to Hong Kong on a permanent basis. The available documentary evidence only shows that her daughter had worked in Hong Kong in May and June 2015. The Petitioner has also produced a bank statement of her daughter, presumably in support of her case that her daughter had worked in Hong Kong in 2017. However, in the statement produced, there is just a cheque deposit made on 4 May 2017 for a sum of $6,000. Taking her case to the highest, it would only show that the Petitioner’s daughter had worked for another short period in Hong Kong in around April to May 2017. 25.Fourthly, the Petitioner stated that she had “obtained an acceptable insurance qualification and was licenced to work as insurance broker”[12] with an insurance company in Hong Kong in 1999. This is supported by documentary evidence: according to an email sent by the insurance company, the Petitioner was indeed engaged by the company in August 1999. However, it is noted that, while the Petitioner had stated that she was “licenced to work” as an insurance broker, she did not say that she had actually worked as such. In any event, even according to her own case, she was only engaged as an insurance broker in 1999, which was 18 years before the filing of the Petition herein. 26.Fifthly, the Petitioner stated that she had opened a bank account with Bank of East Asia in 2007 and is still using it as her primary bank account in Hong Kong. This is one of the matters which this court will take into consideration, even though the reminder of Cheung JA made in ZC v CN (Divorce: jurisdiction) (above) should be borne in mind:
27.Lastly, the Petitioner asserted in the Petition that she had established social network and community connection in Hong Kong. She is a permanent member of a Club in Hong Kong, and most of her friends are living in Hong Kong. Further, it was stated that her daughter and parents-in-law are Hong Kong permanent residents. 28.In support of her case, the Petitioner mentioned in her affirmation that she was a member of a Club (which was related to a capital of a province in the PRC) since 2001. She also said that her social network in Hong Kong includes her former employers, business partners, clients, association members, relatives and friends for years. 29.The Petitioner stated that she “particularly maintained a close relationship” with the Respondent’s parents and “they are one of the most important connection (sic)” she has in Hong Kong. However, it is undisputed that the Petitioner’s parents-in-law went to Beijing to receive medical treatment in 2006, and had subsequently passed away there in February 2007 and July 2008 respectively. If any, such a relationship would have ended around 9 years before the commencement of the proceedings herein. 30.The Petitioner did not give further information as to her relationship with the other people she referred to in her affirmation, so there is no evidence as to how close she was and how frequent she had kept contact with them. However, if the Petitioner would describe her relationship with her parents-in-law as “one of the most important connection (sic)” she had in Hong Kong in the circumstances where they had already passed away for at least 9 years before the commencement of the proceedings herein, this court has great doubt as to whether she really has close social relationship with those people as alleged. It should be borne in mind that since it is the Petitioner who is obliged to establish her substantial connection with Hong Kong, she has to burden to prove such a connection. 31.To conclude, having considered all the above matters, while I accept that the Petitioner had connection with Hong Kong at the time when these proceedings were commenced in August 2017, I am not satisfied that such a connection was substantial enough to invoke Hong Kong court’s jurisdiction in this matrimonial cause. 32.Mr Chan, in his written submissions, referred to section 3(b) of the Ordinance and reminded the court that the Petitioner will have habitually resided in Hong Kong for 3 years by the end of 2020, and “even if the Husband succeeds in achieving a mere pyrrhic victory – it does not prevent the Wife from issuing a Fresh Petition based upon her habitual residence from 2017 to 2020”. With greatest respect, insofar as it is counsel’s submissions that the court should take this matter into account when deciding whether the court has jurisdiction on this matrimonial cause pursuant to section 3(c) of the Ordinance, I disagree. While it may well be a matter for the parties to consider, in light of the possibility that the Petitioner may rely on section 3(b) of the Ordinance in establishing the court’s jurisdiction, whether they should incur cost and time in arguing the summons before this court, this is certainly not a matter which the court should consider in deliberating on the summons. 33.For the above reasons, the Amended Petition filed herein should be dismissed for want of jurisdiction. FORUM NON CONVENIENS 34.In case I am wrong in my conclusion on the court’s jurisdiction on this matter, I turn to consider the alternative relief sought by the Respondent, namely, to stay the proceedings in Hong Kong on the ground of forum non conveniens. The law 35.The law governing stay of proceedings on the ground of forum non conveniens is well established. In SPH v SA [2014] 3 HKLRD 497, the Court of Final Appeal had the following to say:
Stage 1a – Another available forum? 36.In light of the particular circumstances of this case, there are two different questions which need to be answered under stage 1 of the well known test referred to above. 37.The first question is whether this court is satisfied that the Beijing Court is an available forum at all. The Petitioner submitted that it is not, because the divorce proceedings which were initiated by the Respondent there, and the Respondent’s appeal to the Intermediate Court in Beijing, had both been dismissed. The Petitioner’s PRC legal expert opined that this is a final decision which is not subject to further appeal. 38.The Respondent did not dispute what the Petitioner asserted as far as the previous proceedings commenced in Beijing were concerned. However, it was submitted by the Respondent that he is entitled to commence new proceedings in the Beijing Court in the event the proceedings in Hong Kong are stayed. The real question is therefore whether the Respondent is really entitled to do so. If he is not, then there is no alternative forum which is available, and the Respondent’s application for stay herein would be a non-starter. 39.In this regard, according to the PRC legal opinion obtained by the Petitioner, in the event Hong Kong Court takes the view that it has no jurisdiction over this matter, the PRC Court would accept jurisdiction[13]. This must be correct, because it is clear that the Beijing Court had dismissed the Respondent’s proceedings there previously because, among other things, it took the view that Hong Kong court had accepted jurisdiction of this matrimonial cause, and a hearing in the Hong Kong court had already been fixed before the Respondent commenced proceedings there. 40.The position would be totally different in the event the proceedings herein are stayed. 41.I have not lost sight of the opinion of the Petitioner’s expert that even though the Respondent is entitled to commence proceedings in the Beijing Court, the proceedings so commenced may still be stayed by reason of forum non conveniens. In my view, that is another question, which should be further discussed below. However, as far as this “stage 1a” is concerned, I hold that there is another available forum in the Beijing Court. Stage 1b – Is the Beijing Court a more appropriate forum? 42.The Respondent has the burden to establish that first, Hong Kong is not the natural or appropriate forum (“Appropriate” in this context means the forum has the most real and substantial connection with this case), and second, the Beijing Court is clearly or distinctly more appropriate than the Hong Kong court in resolving the matter. 43.In my view, the Respondent has successfully discharged his burden in establishing that Hong Kong is not the natural or appropriate forum and that the Beijing Court is clearly or distinctly more appropriate than the Hong Kong court in resolving the matter for the following reasons:
44.I am fully aware of the Petitioner’s assertions that since November 2017, she has lived and worked in Hong Kong (and allegedly living here together with her daughter) on the strength of her permanent Hong Kong identity card. She has a bank account in Hong Kong. Further, she has no HuKou in the Mainland. On the other hand, I have not forgotten that the Respondent has a property in Hong Kong which he inherited from his father in 2009. He admittedly has some bank accounts in Hong Kong for securities investment purpose. The Respondent was also a director in various companies back in the late 1990s and is a holder of a permanent identity card. 45.In her affirmation, the Petitioner also pointed to the fact that the Respondent had been or currently is a manager and chairman of a Shenzhen company and a Guangdong company respectively. Both these PRC companies have parent companies registered in Hong Kong. 46.However, I am of the view that the above matters, taken together, are inadequate in making Hong Kong a natural or appropriate forum. 47.Mr Chan referred this court to the case of LS v AD (Forum) [2012] HKFLR 376 and submitted that the case before this court is similar to the said case authority in that the court has to identify what does or does not belong to a party to the marriage (the Respondent in the present case). With respect, the facts in LS v AD (above) are clearly distinguishable in that the assets in Hong Kong in that case involve “mainly shares in both BVI and Hong Kong companies, securities and other financial devices and investments, as well as potential debts which are much more fluid and hence easily disposed or transferred out of the jurisdiction, all of which may require complicated investigation, auditing, valuation, fluctuation and litigation”[14]. The assets in Hong Kong owned by the parties before this court are much less complicated. Stage 2 – Legitimate personal or juridical advantage 48.Given my conclusion under stage 1 above, it would be up to the Petitioner to show that she will be deprived of a legitimate personal or juridical advantage if the action is tried in the Beijing Court. 49.As pointed out by Mr Yim for the Respondent, Mr Chan has made no submissions in relation to juridical disadvantage. 50.Mr Yim suggested that the only juridical disadvantage raised by the Petitioner in her affirmations was that it would be “extremely unfair”[15] to her if this case is to be adjudicated upon by the PRC court as the Agreement would be “influential to the judgment in the PRC court”. 51.As pointed out by the Respondent’s PRC law expert (which is undisputed by the Petitioner or her expert), it is open to the PRC court to set aside the Agreement, subject to the adequacy of evidence to be adduced by the Petitioner in support of her case. Further, it is also up to the Petitioner to claim for compensation in light of her sacrifice to the family despite such an Agreement. 52.There is therefore no juridical advantage which the Petitioner would be deprived of even if the case is tried in the PRC. Stage 3 – Balancing exercise 53.Given my above finding, no balancing exercise is required to be done. Conclusion on forum non conveniens 54.For reasons of the aforesaid, if it were necessary for this court to consider the Respondent’s application for stay on the ground of forum non conveniens, this court would have acceded to such an application. ORDER 55.As the Petitioner has failed to establish a substantial connection with Hong Kong as at 10 August 2017, the Amended Petition filed herein on 11 September 2019 is hereby dismissed for want of jurisdiction. COSTS 56.I make a costs order nisi that the Petitioner shall pay the Respondent’s costs of the proceedings (including the costs of this application, with certificate for counsel), to be taxed if not agreed. 57.The costs order nisi shall become absolute in the absence of any application to vary within 14 days.
Mr. Jeremy Chan, instructed by Messrs. Ip & Heathfield, for the Petitioner Mr. Eugene Yim, instructed by Messrs. Stevenson, Wong & Co, for the Respondent [1] Rule 9(9) provides that: “A petition for divorce or nullity of marriage or proceedings for judicial separation, or a joint application in which the court is alleged to have jurisdiction on the ground that either of the parties to the marriage had a substantial connection with Hong Kong at the date of the petition by virtue of section 3(c), 4(a), or 5(d), of the Ordinance shall state (in lieu of a statement as to the domicile of the parties) the facts on which it is alleged that there was such substantial connection with Hong Kong.” [2] Paragraph 10 of the Petitioner’s written submissions [3] Paragraph 19 of the Petitioner’s 2nd Affirmation [4] At page 83 of the bundle [5] At page 75 of the bundle [6] At page 85 of the bundle [7] At page 76 of the bundle [8] At page 76 of the bundle [9] As shown by a letter of the Joint Office 1 of Food and Environmental Hygiene Department and Buildings Department dated 29 December 2017 at page 78 of the bundle [10] At page 87 of the bundle [11] At page 88 of the bundle [12] Paragraph 12 of the Petitioner’s Affirmation [13] At page 2 of the legal opinion dated 27 April 2020: “如果香港特別行政區區域法院裁定對[呈請人]訴[答辯人]離婚糾紛一案沒有管轄權,[答辯人]在內地法院起訴,內地法院可以受理” – at page 463 of the bundle [14] At paragraph 44 of the Decision [15] At paragraph 27 of the Petitioner’s Affirmation |
Cases cited in this judgment
Further hearings and rulings under FCMC 10370/2017