T v. W
Read the full judgment text of FCMP 38/2007 on BabelCite. This FCMP judgment was delivered on 24 August 2021 before HH Judge C.K. Chan.
Family law – Hadkinson Order – Contempt of Court – Maintenance – Disclosure of Address – Parent and Child Ordinance (Cap 429) – Guardianship of Minors Ordinance (Cap 13) – Father in contempt for non-payment and failure to disclose address – Court imposes conditions on father's application for variation – Father ordered to disclose residential address – Mother awarded costs.
Legal issues: Hadkinson Order · Disclosure of Residential Address
Outcome: Father's application stayed unless payment made; Father ordered to disclose address; Mother awarded costs.
Cites 4 cases
|
FCMP 38/2007 [2021] HKFC 169 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION MISCELLANEOUS PROCEEDINGS NO. 38 OF 2007 ------------------------
------------------------
------------------------
----------------------- D E C I S I O N ------------------------ 1.There are currently 2 distinct applications before me:
2.In respect of the father’s application of variation and compensation, there is also a preliminary issue of whether a Hadkinson Order should be made against him. Chronology 3.This case first started in 2007 and therefore, has a very long history. For better understanding, I think it would be useful to set out the chronology of some relevant events concerning the court’s orders on the 2 minors’ maintenance:
4.It can be seen from the above chronology that just about 11 months ago (on 22 September 2020), I have handed down a 50-page Judgment[1] (“the 2020 Judgment”) on the parties’ respective application for variation of the 2 minors’ (both aged 14) maintenance payable by the father. The history of the litigation has already been recited in the 2020 Judgment at §§3-15 therein and I have no intention to repeat the same here. I think it is enough to recite the facts that in the earlier applications, the mother applied for (inter alia) an increase of the minors’ maintenance from $50,000 to $75,000 per month, together with a lump sum of $817,020.80, whilst the father applied for (inter alia) a downward variation of the maintenance payable from $50,000 to $16,500 per month with an order that the mother should undertake to seek gainful employment. 5.In the 2020 Judgment, and after hearing the parties who were both acting in person at that time, I granted the following orders:
6.On 1 September 2020, i.e. 3 weeks before the court handed down the 2020 Judgment, the father issued the present summons for a further variation of the minors’ maintenance to nil and for the mother to pay him monthly compensation of $10,000, for a period of 48 months. Almost as a knee-jerk reaction, the mother (who was still acting in person at that time) issued her summons on 17 September 2020 asking for various reliefs, most of which are no longer relevant for the present hearing. What remains is the mother’s application for the father’s disclosure of his residential address. 7.At the call-over hearing, both these issues (the father’s further application for variation and compensation, and the mother’s application for disclosure of the father’s residential address) were fixed to be tried on 24-25 June 2021. But when I prepared for the said hearing, I came to the view that the court may need to consider a preliminary issue, namely, in view of the special circumstances of this case, whether a Hadkinson Order should be considered against the father. 8.At the first day of hearing, the mother was represented by Mr. Jeffrey Li of counsel and the father was acting in person. Mr. Li agreed with the court’s view that the preliminary issue of a Hadkinson Order should be argued first. The father, being a practising solicitor himself, raised no objection to this course being taken. As a result, I adjourned the matter to the second day and allowed both parties to lodge their respective written submission on the subject. After reading those submissions, and hearing them in court, I reserved my decisions on the preliminary issue of Hadkinson Order and the mother’s application for disclosure to be handed down, which I now do. Discussion 9.I intend to deal with the Hadkinson issue first, and the starting point should of course be a discussion of the legal principles of this seeming draconian order in family proceedings. 10.I have in fact dealt with a similar case back in 2013[2] in which I have discussed in some details the Hadkinson principles. That case was unreported and at §§20-21 therein, I recited the following principles from the case of Hadkinson v Hadkinson[3]:
11.Therefore, starting from Hadkinson, it has become clear that the court could, under appropriate circumstances, exercise its discretion in refusing to hear a party’s application. 12.In Mubarak v Mubarik[4], Ryder J had before him an application to vary periodical payments in circumstances where the applicant was in contempt for failure to pay a lump sum. His Lordship held[5] that in considering whether to grant a Hadkinson Order, the following questions have to be answered:
The principles as set out in Mubarak above were accepted by the Court of Appeal in Hong Kong in CWG v MH[6] : per Yuen JA at §12 of the Judgment. 13.It is to be noted that the circumstances of the present case are quite similar to those in Mubarak in that the defaulting party therein was in contempt by failing to pay the lump sum. The father in the present case failed to pay both the lump sum, periodical payments and costs. 14.Not long after the case of Mubarak, Sir Mark Potter P in the case of Laing v Laing[7] had a discussion on the use of the expression “contumacious” by Ryder J in Mubarak and did not find it an useful reference when applied to the wilful nature of the contempt relied upon to found the Hadkinson jurisdiction. He said at §24 of the judgment:
15.I shall bear the above general principles in mind, in particular, the 6 questions posed in the case of Mubarak when I consider the particular facts of this case. Is the father in contempt? 16.In considering whether the father was in contempt, the court has to take into account of the following facts. 17.The maintenance order granted by HH Judge Bruno Chan on 18 January 2017 included a periodical payment of $50,000 per month for the benefit of the 2 minors. When the farther issued his first summons for downward variation to $28,000 per month (on 25 February 2019), he unilaterally reduced the payment to that sum, as if the court had to grant the application from the date of issuance. 18.On 28 June 2019, the father issued his second summons for further downward variation of monthly maintenance to $16,500 per month, and again, he immediately reduced payment to such sum. 19.On 1 September 2020, the father issued his present summons for further downward variation of monthly maintenance to nil. Again, he immediately stopped all payment upon the issuance of the summons. 20.The father’s unilateral reduction in or cessation of the payment of maintenance are in blatant disregard of the court’s order which was in force unless and until being varied. It has been held that non-payment under a matrimonial order is in itself a contempt of court: Mubarak v Mubarak (Contempt in Failure to Pay Lump Sum: Standard of Proof) [2006] EWHC 1260 (Fam), [2007] 1 FLR 722. I see no difference between an order of maintenance for children born within or outside wedlock. The father must be in contempt of the Judge Bruno Chan’s order dated 18 January 2017 in the present family proceedings. He is also in further contempt of the 2020 Judgment when the minors’ maintenance was raised from $50,000 to $52,000 per month. Is there an impediment to the course of justice? 21.An impediment to the course of justice, in the context of a Hadkinson application, can take two forms, ie the contempt, if continues, has made it more difficult for the court to ascertain the truth or to enforce the orders which it may make. This was the test referred to by Denning LJ in Hadkinson (supra) at p.575 B:
22.On 2 separate occasions, this court (both HH Judge Bruno Chan and myself) had assessed the 2 minors’ needs at $50,000 and $52,000, and the court had ordered the father to meet those needs. According to Mr. Li for the mother (at §42 of his Skeleton Arguments), those amounts were determined by the court to be payable by the father to meet the ends of justice. By paying nothing towards such needs of the minors, especially after the court was satisfied of the father’s ability to do so after a full trial, this has to be an obstruction or impediment to justice. This is particularly so when it is clear that the mother has no independent financial means (except by relying on irregular financial assistance from a friend) and so the recalcitrant effort by the father in denying the court’s ruling must be detrimental to the best interest of the minors. 23.In this regard, I note that at §§95-109 of the 2020 Judgment, I have discussed in some details on the father’s failure in fulfilling his duty of full and frank disclosure, which was deliberate with an obvious intention to frustrate a reasonable investigation into his financial circumstances. At §109, I came to the following conclusion:
24.As a result, this court had to draw adverse inferences against the father at §§111-112 of the 2020 Judgement:
25.With the father’s deliberate attempt to frustrate a reasonable investigation into his financial circumstances, I am satisfied that his disobedience of the court’s order on maintenance (i.e. his contempt) is such that, so long as it continues, impedes the course of justice in the cause, by making it more difficult for the court to ascertain the truth or to enforce the orders it may make. Is there any other effective means of securing compliance with the court’s orders? 26.It is noted that since the 2020 Judgment which was granted on 22 September 2020 increasing the maintenance payable by the father from $50,000 to $52,000 per month, the father has failed to pay a single cent on it, not even the costs of $2,000 as ordered. The only way to enforce such an order is by way of judgment summons which was taken out by the mother on 7 June 2021. In the case of YBL v LWC[8], the Court of Appeal has already ruled that the then procedures on judgment summons was not Hong Kong Bill of Rights compliance and has set out the proper remedial interpretations to read down the then Rule 87 of the Matrimonial Causes Rules, Cap.179A (“MCR”) by segregating the examination and committal processes. All future judgment summonses, unless specifically issued as committal summons, will be treated as examination summons. It is recognised that the effectiveness of judgment summons, as an enforcement tool, is greatly curtailed. 27.Furthermore, I note that the father has, even up to this date, refused to disclose his residential address in these proceedings. I will discuss more on this topic when I come to address the mother’s application for the disclosure of the father’s residential address in the latter part of this judgment. But with the father’s insistence on not disclosing his residential address, the investigation into his means or properties by way of examination, for the purpose of enforcing the court’s order on maintenance, is unlikely to produce any fruitful result. Therefore, I am satisfied that the mother has no other effective means of securing the father’s compliance of the court’s order on maintenance. Is the contempt wilful? 28.In paragraph 23 above, I have already recited §109 of the 2020 Judgment in which I was satisfied that the father had deliberately failed in his duty of full and frank disclosure in order to frustrate a reasonable investigation into his financial circumstances. At §112 of the same Judgment, I was also satisfied that the father was able to afford the monthly maintenance of the minors at $52,000 per month. On these findings, there is no doubt in my mind that the father’s contempt of the court’s maintenance order has to be wilful. Moreover, it is to be noted that in the 2020 Judgment, I have granted a costs order of $2,000 against the father, which was really a very modest sum in view of the fact that both parties were acting in person at that time. There was no attempt by the father to pay even this modest sum and this only demonstrates the father’s determination in flouting whatever orders to be made by this court against him. 29.To be fair to the father, I think it is necessary for me to mention that in his written submissions (at paragraphs 1(6) and 28), he did offer to pay “interim maintenance” in the sum of $5,000 per month as from 1 July 2021 so that his application for further variation could be proceeded with. But I am afraid that this is yet another piece of evidence to show that the father was in fact able to pay at least some of the maintenance or judgment debts, but he deliberately chose not to do so. He was only willing to offer a reduced payment when the court starts to consider whether the Hadkinson jurisdiction should be invoked. I am satisfied that the father’s contempt must be wilful. Should conditions be imposed? 30.Bearing the above discussion in mind, I do not see any good reasons not to exercise my discretion in imposing conditions on the father before he would be allowed to proceed with his application for further variation of the maintenance order. What conditions would be appropriate? 31.In the 2020 Judgment, evidence was heard and considered up to September 2019. Therefore, when this court gave its ruling on the father’s ability to pay the increased maintenance at the level of $52,000 per month, it was only based on the evidence up to September 2019. Whether there has been a substantial change of circumstances after that date is yet to be determined. In the circumstances, I think it would be fair for the father to pay the arrears up to September 2019, before this court would allow him to proceed with his current application for further variation. 32.At §9 of the mother’s affirmation filed on 10 May 2021 (based on which the judgment summons was issued), all the father’s arrears were listed out and if one takes into account the arrears from 1 February to 1 September 2019, the arrears of monthly maintenance for that period amount to $226,500. If one should add the lump sum of $100,000 and the costs of $2,000, the total arrears amount to $328,500 ($226,500 + $100,000 +$2,000 = $328,500), excluding interest and surcharge. In the mother’s judgment summons, there was a claim for interest and surcharge which was yet to be quantified. Doing the best as I could, I think it is also fair for the father to pay a sum as security for such interest and surcharge. I will fix this at $100,000 to be paid into court, pending either the parties’ agreement on the quantum of interest and surcharge, or failing which the decision of this court. Therefore, the condition to be imposed is for the father to pay up part of the judgment debt at $328,500 to the mother and another $100,000 into court as security for the interest and surcharge before he would be allowed to proceed with his current application for further variation of the minors’ maintenance. I would order that if the above payments were not made within 28 days from the handing down of this judgment, the father’s applications for further variation of the minors’ maintenance and for compensation to be stayed, and not to be restored without the leave of the court. The mother’s application for the disclosure of the father’s residential address 33.In the mother’s summons dated 17 September 2020, she asked for, inter alia:
34.I think there is no dispute that the father has not provided his updated residential address to the court. In his Form E dated 26 March 2021 (A/241-268), under section 1.16 (A/246) which required the father to state his present residence, he stated “No permanent residential address”. But when he took the oath at the end of the document (A/267), he stated his residential address at “Unit 05, 29/F, 50 Wong Chuk Hang Road, Hong Kong.” However, even this was not his real residential address because it was an address of a commercial building. Furthermore, just days before the hearing, the father further changed his address to “21st Floor, CMA Building, No.64 Connaught Road Central, Hong Kong” which, according to Mr. Li, was a shared work place in Central. Indisputably, this was not the father’s residential address. 35.When being confronted in court, the father still refused to disclose his residential address. If I understand it correctly, his objection to disclosure was mainly based on 2 grounds. First, he said the concealment of his residential address was needed in order to avoid harassment from the mother. He said the mother did go to his work place before causing disturbance, resulting in him losing some of his company directorship. He had to issue an application for injunction of which this court did grant such relief on an interim basis. Second, he said that the mother had also concealed her residential address and therefore, he should not be criticised for doing the same. Discussion 36.As rightly pointed out by Mr. Li, there is a statutory requirement under O.41 r.1(4) of the Rules of High Court, Cap.4A (“RHC”) that:
That is why Form E requires the deponent to state his residential address. Therefore, if the father wants a non-disclosure of his residential address, he needs to apply to the court for such direction, of which he has failed to do. 37.As to the explanations given by the father for such non-disclosure, it is true to say that this court has once granted an interim injunction for non-molestation against the mother, which has now been discharged upon her undertakings for non-molestation. I think the mother must have learned a big lesson and the chances of her breaching such undertakings are very slim. After all, she is well aware that the father will have no hesitation in applying for a committal order if breaches should happen in the future. Furthermore, the fact that the father could always come to court to apply for further non-molestation reliefs, if needed, provides sufficient deterrent and there is no good reason for him to hide his residential address. 38.As one could see from the history of this case, HH Judge Bruno Chan had in fact made an order back on 21 April 2008 for the provision of the father’s residential address to be sealed in an envelope and not to be opened unless with the leave of the court. Inside an envelope in the court files, the address given by the father was one at the Lantau Island and the date given was 28 December 2015. I do not know if that was still his current residential address, but I suspect not. In this regard, I note that under Section 19 of the Guardianship of Minors Ordinance, Cap.13 (“GMO”), a maintenance payer has the duty to notify his change of address or otherwise, he may be subject to criminal sanctions:
Since Judge Bruno Chan had already ordered the father to provide his residential address, I am satisfied that he also has a duty to comply with section 19 of GMO to provide his updated residential address, if it has already been changed. 39.As to the issue on concealment, it is not apparent from the record on why Judge Bruno Chan should have made such direction. I suspect that it might have to do with the then high level of animosity between the parties. It did not seem to be a big issue at the time as there was no issue on enforcement. But now with the arrears of maintenance being at $1,187,000 and counting, I think it is reasonable for the mother to insist on the provision of the father’s residential address for the purpose of service and facilitation of her enforcement proceedings. 40.I cannot see any good reason to deny the mother’s request. After all, the mother has already issued a Judgement Summons for examination of the father as a judgment debtor, under which the father has to provide the answers under oath, including his residential address if asked for. Therefore, I am satisfied that the father has to provide his current residential address as requested. 41.As to the father’s complaint that the mother has also failed to provide her residential address, first of all, we are not here to deal with an application for the disclosure of the mother’s residential address. Secondly, the mother is now legally represented and any difficulty on service is no longer relevant. Thirdly, the mother is not a judgment debtor. There is no issue of enforcement against her. All in all, I do not accept that the father could rely on this as a valid reason to refuse disclosure of his updated residential address. Conclusions and Orders 42.Based on the above discussion, I am satisfied that in the interest of justice, it is proper for this court to exercise its discretion under the Hadkinson principles to impose conditions on the father before he would be allowed to continue with his application for further variation of the minors’ maintenance orders. I am also satisfied that it is proper to order the disclosure of the father’s updated residential address. 43.In the circumstances, I make the following orders:
Costs 44.The mother succeeds in both applications. Despite the fact that she has withdrawn some of the prayers in her summons, I do not see how that has prolonged the hearings in any substantial way. In the circumstances, the mother should be given costs of these summonses (subject to previous rulings on costs, if any), including all costs reserved, and such costs are to be taxed if not agreed. There was an argument on whether counsel certificate should be given. This case involves an argument on the Hadkinson principles which cannot be regarded as simple. The long history of litigation has also added to the complexity. The engagement of counsel is justified. I will also grant a certificate for counsel. As to the mother’s own costs, they will be taxed in accordance with Legal Aid Regulations.
Representation: Mr. Jeffrey Li, Barrister-at-law, instructed by Messrs. Chiu & Co., solicitors for the Applicant The Respondent acting in person [1] [2020] HKFC 199, Date of Judgment: 22 September 2020 [2] KEWS v NCHC, FCMC 13087/2008, unreported, Date of Judgment: 13 November 2013 [3] [1952] 2 All ER 567 [4] [2004] EWHC 1158 (Fam), [2004] 2 FLR 932 [5] At para 59, pp. 945-946, [2004] 2 FLR [6] [2004] 4 HKLRD 141 [7] [2007] 2 FLR 200 [8] [2017] 1 HKLRD 823 |
Cases cited in this judgment
Further hearings and rulings under FCMP 38/2007