Koo Ming Kown v. Rev. Mr. Mok Kong Ting (President of the Baptist Convention of Hong Kong) and Others
Read the full judgment text of HCA 2337/2016 on BabelCite. This High Court CFI judgment was delivered on 21 March 2022.
1. By a summons of 22 July 2021, the 1 st and 4 th Defendants apply to strike out the Plaintiff’s Re-Re-Amended Writ and Re-Re-Amended Statement of Claim as scandalous, frivolous or vexatious, an abuse of process and/or disclosing no reasonable cause of action.
Cited by 4 cases · Cites 5 cases
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HCA 2337/2016 [2022] HKCFI 642 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE ACTION NO. 2337 OF 2016 ____________ BETWEEN
____________ Before: Hon Cheng J in Chambers Date of Hearing: 17 January 2022 Date of Judgment: 21 March 2022 _______________ J U D G M E N T _______________ A. THE APPLICATIONS 1.By a summons of 22 July 2021, the 1st and 4th Defendants apply to strike out the Plaintiff’s Re-Re-Amended Writ and Re-Re-Amended Statement of Claim as scandalous, frivolous or vexatious, an abuse of process and/or disclosing no reasonable cause of action. 2.The Plaintiff had earlier issued a summons on 23 April 2021, seeking leave to amend the Re-Re-Amended Writ and Re-Re-Amended Statement of Claim, and a summons of 10 January 2022, seeking leave to replace the draft Re-Re-Re-Amended Writ and Re-Re-Re-Amended Statement of Claim with a revised version. 3.At the hearing, the 1st and 4th Defendants did not oppose the Plaintiff’s applications (and the 3rd Defendant, who did not attend, indicated the same position by way of letter). I therefore allowed the Plaintiff’s applications, with the costs of and occasioned by the summonses to be paid by the Plaintiff to the 1st, 3rd and 4th Defendants. The strike-out application was argued by reference to the Re-Re-Re-Amended Statement of Claim (“the RRRASOC”). B. THE BACKGROUND 4.The Plaintiff is an alumnus of the Hong Kong Pui Ching Primary School (“the Primary School”) and the Hong Kong Pui Ching Middle School (“the Middle School”) (collectively, “the Schools”). 5.Paragraph 1C of the RRRASOC pleads that the 4th Defendant is the sponsoring body, as defined under the Education Ordinance (Cap. 279) (“the EO”), of the Schools, and manages and operates the Schools. It is further pleaded that the 4th Defendant administers the Schools through its appointment of the members of the management committees of the Schools or their managers, as well as their supervisors and principals. It is said that the 4th Defendant has de facto and ultimate control of the management and affairs of the Schools through the supervisors, managers and principals that it appoints. 6.It is pleaded in RRRASOC paragraph 2 that the 1st Defendant is the Chairman of the 4th Defendant. The 1st Defendant has filed evidence stating that he was the president of the 4th Defendant between 2014 and 2017 (when some of the events which are the subject of the proceedings occurred), and that he is currently a director of the 4th Defendant. 7.The 3rd Defendant was the supervisor (as defined under the EO) of the Schools from about September 2010 to August 2018 (RRRASOC paragraph 3). The Plaintiff questioned the validity of the 3rd Defendant’s doctorate degree and his integrity, and took the view that he was not a fit and proper person to act as a Supervisor, principal, manager or teacher of the Schools. The nub of the complaints by the Plaintiff against the 1st and 4th Defendants is that they failed to verify the 3rd Defendant’s qualifications, and wrongly allowed him to continue in office, despite the Plaintiff drawing the matter to their attention. They seek declarations that:
8.The action had originally been commenced against the 1st Defendant and the 2nd Defendant who was the Executive Secretary of the 4th Defendant. They applied to strike out the claim. By a decision of 4 May 2018 (“DHCJ To’s Decision”), Deputy High Court Judge To allowed an appeal against the Master’s decision to dismiss the strike out application, but only to the extent that the action against the 2nd Defendant be struck out. Deputy High Court Judge To also upheld the orders granting leave to the Plaintiff to join the 3rd and 4th Defendants in the action. Paragraph 1F of the RRRASOC and Relief (b) were not in the pleading at the time of the hearing before DHCJ To (or indeed at the time of the hearing before DHCJ Le Pichon referred to in the next paragraph). 9.The 3rd Defendant also applied to strike out the claim in October 2018, by which time he was no longer a Supervisor of the Schools. By a decision of 3 June 2020, Deputy High Court Judge Le Pichon allowed an appeal against the Master’s decision to strike out the claim (“DHCJ Le Pichon’s Decision”). 10.The 1st and 4th Defendants say that the circumstances have changed since DHCJ To’s Decision, as the 3rd Defendant is no longer a supervisor of the Schools. They say that any declaratory relief against them (the 1st and 4th Defendants) would be of no practical utility. C. THE APPLICABLE PRINCIPLES C1. Strike out 11.There was no dispute as to the applicable principles. These were summarised by Au-Yeung J in Yifung Properties Ltd and other v Manchester Securities Corp and others, unreported, HCA 1341/2014 and HCA 1359/2014, 19 October 2015, at [10] to [15]:
C2. Declaratory relief 12.The parties were largely in agreement as to the applicable principles, which were reviewed in DHCJ To’s Decision at [15] to [19]. At [20] (which was cited with approval in Convoy Global Holdings Ltd and another v Kwok Hiu Kwan and another [2021] HKCA 1594 at [29] to [30]), DHCJ To summarised the position as follows.
13.Mr Abraham Chan SC, counsel for the 1st and 4th Defendants, submitted that the modern approach, after the Civil Justice Reform, was to consider whether a declaration was justified as a matter of practical utility, citing Convoy Global Holdings Ltd v Kwok Hiu Kwan [2020] 4 HKLRD 222 at [53] (which in turn cited to DHCJ To’s Decision at [17]); earlier authorities were to be treated with caution. In considering the utility of a declaration to the claimant, the court should also take into account the inconvenience and embarrassment it might cause to the defendant. 14.Ms Bianca Yu, counsel for the Plaintiff, submitted that where proceedings have been commenced but the dispute between the parties comes to an end, this will not necessarily prevent the grant of declaratory relief if the action raised substantial issues when the proceedings were commenced and if the declaration sought would still serve some useful purpose, citing Gibson v Union of Shop Distributive and Allied Workers [1968] 1 WLR 1187 and Marion White v Francis [1972] 1 WLR 1423. 15.It seems to me that these are simply differences of emphases. A declaratory judgment is a flexible and discretionary remedy (see Zamir & Woolf, The Declaratory Judgment, 4th ed., para 4-01). Whether a declaration satisfies the requirement of “practical utility” in any one case will turn very much on its particular facts. As a consideration of the authorities reviewed in Zamir & Woolf under “The importance of a declaration serving a practical purpose” (paras 4-99 to 4-103), “What is a practical purpose?” (paras 4-104 to 4-109), “Termination of the dispute” (paras 4-121 to 4-127) and “Balance of convenience” (at para 4-128) shows, on the one hand, the court has always been reluctant to grant a declaration that would not serve any practical purpose; on the other hand, “useful purpose” has been interpreted in a broad and flexible sense. 16.In the present case, it is important not to lose sight of the fact that this is a strike out application, so that the issue is whether it is clear and obvious that the claims for declaratory relief are unsustainable. D. THE 1ST AND 4TH DEFENDANTS’ GROUNDS FOR STRIKING OUT 17.The 1st and 4th Defendants sought primarily to strike out the Plaintiff’s claim for Relief (b). As summarised by Mr Chan SC, their arguments were that:
18.The 1st and 4th Defendants also sought to strike out the Plaintiff’s claim for Relief (a) also, as:
D1. Duty said to be owed by the 1st and 4th Defendants 19.The 1st and 4th Defendants’ principal argument was that they did not owe a duty as alleged in paragraph 1F of the RRRASOC to ensure that the reputation of the Schools was not damaged. The “real issue” requirement was therefore not satisfied, as there was no “proper and sustainable basis” to seek declaratory relief based on the statutory regime, citing Convoy at [70]. 20.Mr Chan SC submitted that the EO did not provide for a duty as pleaded by the Plaintiff; nor, given the extensive statutory regime, was there room for finding such a duty at common law. 21.Paragraph 1F of the RRRASOC is somewhat prolix. It starts by pleading that the 1st, 3rd and 4th Defendants owed a duty to the Plaintiff and/or under the EO to act reasonably to ensure that the reputation of the Schools is not damaged. It then elaborates on what this means:
22.As regards the 1st and 4th Defendants, therefore, the essence of the plea in paragraph 1F of the RRRASOC is that they have a duty under the EO to ensure that candidates for appointment as supervisor, principal, manager and/or teacher of the Schools are fit and proper persons, and not to allow those who are not fit and proper to serve, or else the reputation of the Schools would be damaged. 23.In my view, it cannot be said that it is clear and obvious that the claim of such a duty is unsustainable (so that the “real issue” requirement is not satisfied). 24.The relevant provisions of the EO[1] are as follows.
25.Under s.72A, the sponsoring body of a school therefore may express its views on the acceptability of a manager or supervisor of the school, which could include the question of whether the manager or supervisor is fit and proper to serve as such. Whilst the issue of acceptability under s.31(2A) and s.37(d) is framed in terms of acceptability to the managers, it is notable that under s.72A, the sponsoring body may express its views whether or not the management committee has expressed its views, and that in any event, its views prevail over any views expressed by the management committee. It is also notable that the sponsoring body may express its views whether or not the Permanent Secretary has asked for them. 26.In my view, on the basis of the pleaded circumstances that:
it cannot be said that it is plain and obvious that the Plaintiff would fail in its claim that the 4th Defendant ought to have taken steps to remove the 3rd Defendant as supervisor of the Schools (for example by expressing views to the Permanent Secretary as to his acceptability as supervisor and manager). 27.I would further note that in DHCJ To’s Decision, he expressed the view that the 1st and 4th Defendants had a duty to ensure that the supervisor of the Schools was a fit and proper person, and to remove him if he was no longer fit and proper or was otherwise unacceptable, by reference to 4th Defendant’s articles of association and on a proper construction of s.38 EO (see [32], [34], [35], [36], [47]). The 1st and 4th Defendants did not seek to suggest that DCHJ To’s Decision was wrong. Rather, their argument was that (a) circumstances had changed since that decision as the 3rd Defendant was no longer a supervisor of the Schools, and (b) the duty pleaded in RRRASOC paragraph 1F, and Relief (b), was not in the pleading at the time of DHCJ To’s Decision.[2]
28.In other words, the 1st and 4th Defendants seek to sidestep, rather than to challenge, the views expressed by DCHJ To that the 1st and 4th Defendant did have a duty to ensure that the supervisor of the Schools was a fit and proper person, and to remove him if he was no longer fit and proper or was otherwise unacceptable. Given that RRRASOC paragraph 1F in essence seeks to plead such a duty, and given the 1st and 4th Defendants do not challenge DCHJ To’s Decision, it cannot be said that the existence of such a duty is unarguable. 29.The other arguments advanced in support of the contention that no duty arose under RRRASOC paragraph 1F do not take the 1st and 4th Defendants’ case further.
30.I therefore do not agree that it is unarguable that the 1st and 4th Defendants had a duty under the EO to ensure that candidates for appointment to various positions in the Schools were fit and proper persons, and to prevent those who were not fit and proper to serve, so as not to damage the reputation of the Schools. D2. Whether abuse of process to pursue private action 31.Mr Chan SC submitted that it was for the Permanent Secretary, rather than a disgruntled alumnus, to take action in the event of mismanagement of a school. The Plaintiff’s action was an abuse of process in that it sought to bypass the statutory mechanism under the EO for dealing with matters of mismanagement. Extensive powers had been given to the Permanent Secretary enabling him to investigate a school’s affairs and take remedial measures. In the event that the Permanent Secretary failed to act, the mode of redress lay in an application for judicial review. Accordingly, it was said, the claims for both Relief (a) and Relief (b) were an abuse of process. 32.This argument was similar to one made to DHCJ To (in the context of Relief (a)) and which he rejected. As DHCJ To observed, it is not the public duty of the Permanent Secretary to actively involve himself in the management of a school or appointment of its supervisor; these are functions within the realm of the management committee. The role of the Permanent Secretary is a passive one, being to approve the appointment of the supervisors recommended by the sponsoring body or management committee, subject to a residual power to screen out anyone he regards as not fit and proper. It is not for the Permanent Secretary to police the discharge of the management committee’s duty by regularly reviewing whether the supervisor is a fit and proper person or continues to be acceptable by the management committee. The Plaintiff’s complaint was not against the Permanent Secretary, but against the Defendants for not taking action. See DHCJ To’s Decision at [32] to [35], with which I respectfully agree. 33.Mr Chan SC further submitted that if the Plaintiff wanted redress, the proper route was through the EO. However, the EO provides no mechanism for someone in the position of the Plaintiff to require the Permanent Secretary to intervene in and investigate the affairs of a school. In any event, under the EO, the primary responsibility for managing a school lies with its management committee, not the Permanent Secretary. D3. Whether declaration in Relief (b) of practical utility; whether Relief (b) would impose substantial burdens on the 1st and 4th Defendants 34.I will deal the third and fourth arguments in relation to Relief (b) together, namely that the declaration sought was of no practical utility, so that the “real interest” requirement was not satisfied, and the burdens imposed by the relief sought were substantial. 35.The argument is that there is no practical utility in the declaration under Relief (b) as the 3rd Defendant is no longer a supervisor of the Schools, having been replaced in September 2018. It is said that this renders academic any declaration regarding the earlier appointment or continuation of the 3rd Defendant as supervisor (prior to September 2018). It is further said that if the Plaintiff’s concern is simply to establish that the 3rd Defendant is not fit and proper as a supervisor, it is a disproportionate burden for the 1st and 4th Defendants to have to take part in the litigation. 36.I do not agree that it is clear and obvious that there would be no practical utility in this declaration, or that the Plaintiff’s claim for the relief places a disproportionate burden on the 1st and 4th Defendants.
D4. Relief (a) 37.The 1st and 4th Defendants argued that there was also no practical utility in the declaration under Relief (a) as the 3rd Defendant has been replaced, and whether he might be appointed in the future is speculative. 38.However, it is not inconceivable that the 3rd Defendant might seek to be elected to a position at the Schools in the future. RRRASOC paragraph 16 pleads that despite the serious allegations against the 3rd Defendant as to his lack of integrity and his false representations as to his academic qualifications, which were supported by evidence, the 3rd Defendant continued to stand for election, and was appointed as supervisor of the Primary School for the terms commencing 1 September 2016 and 1 September 2017. He was also elected as Supervisor of the Primary School for the term commencing 1 September 2018. The evidence is that the standing committee of the council of the 4th Defendant blocked the nomination of the 3rd Defendant as school supervisor of the Primary School and the Middle School, and another school supervisor was nominated. If the 3rd Defendant were to successfully seek election on a future occasion, whether the 4th Defendant might have a change of mind and support his appointment could not be ruled out (cf. DHCJ Le Pichon’s Decision at [71]). 39.At the hearing, Mr Chan SC sought to address this by indicating that the 1st and 4th Defendants took a neutral stance as regards the outcome of the Plaintiff’s claim for Relief (a) as against the 3rd Defendant, and by offering an undertaking that the 1st and 4th Defendants would abide by the terms of any declaration made against the 3rd Defendant in this regard. Ms Yu acknowledged that this would indeed address the concern that the 1st and 4th Defendant might ignore any declaration insofar as it was made against the 3rd Defendant only (and proceed to appoint him to a managerial position in the Schools), there not having been evidence filed up to that point to indicate otherwise. She submitted, however, that it did not address the other purpose for which the declaration was sought, which was to obtain guidance as to how an application for a position at the Schools should be dealt with in the event that the applicant’s qualifications were doubtful. However, a declaration as to whether the 3rd Respondent is, on the facts, a fit and proper person to serve in a position with the Schools would not provide guidance as to the approach which the 4th Defendant or members of its council should adopt in dealing with applications for positions at the Schools. Indeed, it would not even directly address the issue of whether the approach adopted by the 1st and 4th Defendants in relation to the case of the 3rd Respondent was a proper one. 40.In these circumstances, I agree that it is plain and obvious that there would not be any practical utility remaining for the Plaintiff to pursue Relief (a) against the 1st and the 4th Defendants. Accordingly, on the basis of the 1st and 4th Defendants’ undertaking, I strike out this part of the claim. E. DISPOSITION 41.I therefore strike out the Plaintiff’s claim against the 1st and 4th Defendants for Relief (a), on the basis that the 1st and 4th Defendants undertake to abide by the terms of any declaration made against the 3rd Defendant in relation to Relief (a). The parties should seek to agree the precise wording of the undertaking, and submit a draft order for approval within 14 days from today. In the event that the parties are unable to agree on the order, each party should submit his respective draft order, giving reasons for disagreeing with the other parties’ draft. I will thereafter determine the matter on the papers, unless a party raises an objection to such a course, with supporting reasons. 42.I dismiss the remainder of the 1st and 4th Defendants’ summons of 22 July 2021. 43.Whilst I have struck out the Plaintiff’s claim against the 1st and 4th Defendants for Relief (a), this was on the basis of an undertaking which was offered only in the course of submissions made at the hearing. I therefore make a costs order nisi that the 1st and 4th Defendants pay the costs and occasioned by their summons of 22 July 2021 to the Plaintiff, to be taxed if not agreed.
Ms Bianca Yu, instructed by V. Hau & Chow, for the Plaintiff Mr Abraham Chan SC leading Mr Richard Yip and Mr Keith Cheung, instructed by Or & Partners, for the 1st and 4th Defendants Attendance of the 3rd Defendant was excused | ||||||||||||||||||||||||
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