Aici Tan v. Zhu Yuan Mu Gyxy Trade Ltd and Others

Read the full judgment text of DCCJ 2078/2022 on BabelCite. This District Court judgment was delivered on 30 August 2022.

1. By summons dated 19 July 2022 (the “ Summons ”), the Plaintiff applies for non-party discovery against the Hongkong and Shanghai Banking Corporation Limited (“ HSBC ”)  and Bank of China (Hong Kong)  Limited (“ BOC ”, and together with HSBC, the “ Banks ”)  for disclosure of the banker’s records in relation to 5 bank accounts (2 maintained with HSBC, 3 with BOC), pursuant to s 21 of the Evidence Ordinance (Cap 8).

Cites 3 cases

Case No.DCCJ 2078/2022[2022] HKDC 909
Court
District Court
Date30 Aug 2022
Judge
Case Document
100%Judiciary

DCCJ 2078/2022

[2022] HKDC 909

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO 2078 OF 2022

________________________

BETWEEN

  AICI TAN Plaintiff
  and  
  ZHU YUAN MU 1st Defendant
  GYXY TRADE LIMITED
(廣雲新英貿易有限公司)
2nd Defendant
  FANG RU YAN TRADE LIMITED
(芳如豔貿易有限公司)
3rd Defendant
  XING FENG HUA TRADE LIMITED
(興鋒華貿易有限公司)
4th Defendant
  DONG YONGMING 5th Defendant
  TONGWUZHOU (HONG KONG) TRADE CO., LIMITED
通五洲(香港)貿易有限公司)
6th Defendant
  KAISHENGXIN TRADING LIMITED
(凱盛新貿易有限公司)
7th Defendant
  YHS TRADE LIMITED
(永和順貿易有限公司)
8th Defendant

________________________

Before:  Deputy District Judge Vincent Lung in Chambers (Open to public)

Date of Hearing:  24 August 2022

Date of Reasons for Decision:  30 August 2022

________________________

REASONS FOR DECISION

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1.By summons dated 19 July 2022 (the “Summons”), the Plaintiff applies for non-party discovery against the Hongkong and Shanghai Banking Corporation Limited (“HSBC”)  and Bank of China (Hong Kong)  Limited (“BOC”, and together with HSBC, the “Banks”)  for disclosure of the banker’s records in relation to 5 bank accounts (2 maintained with HSBC, 3 with BOC), pursuant to s 21 of the Evidence Ordinance (Cap 8).

2.HSBC adopts a neutral stance to the Summons.  BOC is also neutral as a matter of principle but provided helpful comments on the precise terms of the order through its solicitor’s letter.  I excused the Banks from attending the hearing before me.

3.Upon hearing Mr Edward Chin, counsel for the Plaintiff, I made an order in terms of the draft order provided to me (substantively reflecting BOC’s comments)  with minor amendments.  These are my reasons.

Background facts

4.This is yet another fraudulent scheme conducted online.  The details are comprehensively set out in the 2nd affirmation of the Plaintiff which I have considered in full, and a brief recital will be sufficient for present purposes.

5.The Plaintiff was born in Mainland China but she moved to live in the United States in 2008 with her family.  She is now an American citizen.

6.In March 2020, the Plaintiff became acquainted on Facebook with a complete stranger who claimed himself to be one Law Yin Wing (“Law”). Over time the Plaintiff came to repose trust and confidence in Law (although they have never physically met).

7.In April 2020, Law told the Plaintiff that he had reliable investment information and the Plaintiff should take part in it.  In due course, as directed by Law and under various false representations and excuses, the Plaintiff made 6 transfers to various accounts totaling US$225,700 as follows:

Date Amount (US$) Destination account
8 April 2020 20,000 The 1st Defendant’s account at BOC (no: 01289120095969)
21 April 2020 46,000 The 2nd Defendant’s account at BOC (no: 01280620089228)
27 April 2020 60,000
6 May 2020 56,700 The 3rd Defendant’s account at HSBC (no: 004691080626838)
19 May 2020 32,000 The 4th Defendant’s account at HSBC (no: 004691080501838)
27 May 2020 11,000 The 5th Defendant’s account at BOC (no: 01266320053741)

8.The Plaintiff subsequently realised that she had been defrauded when Law completely vanished.  The Plaintiff also discovered that the photograph that Law had earlier sent her on Facebook (claiming to be his own photograph)  was in fact a Hong Kong television actor.

9.Reports were then made to the Hong Kong police, who informed the Plaintiff that part of the transferred funds have already been moved onto certain 2nd layer recipients (being the 6th to 8th Defendants).

10.I should add that the Plaintiff has obtained a Mareva injunction against the 2nd to 4th Defendants.  There was also a Mareva injunction originally in place against the 1st and 5th Defendants, but that was discharged in view of the fact that their accounts only had a nominal credit balance (a disclosure order was made against the Banks on 21 June 2022 by H H Judge M K Liu but only in relation to the current credit balance of the 1st to 5th Defendants’ accounts).

Legal principles

11.The applicable legal principles are well-established.  They are set out in CTO (HK)  Ltd v Li Man Chiu [2002] 2 HKLRD 875 at paras 10-13 and Tiger Resort Asia Ltd v Kazuo Okada [2018] HKCFI 472 at paras 28-30, and I do not intend to repeat them. 

Analysis

12.It is plain that the Plaintiff is entitled to make a proprietary claim in relation to the funds that she transferred away as a consequence of the fraudulent scheme.

13.I am satisfied that the banker’s records which the Plaintiff seeks to inspect contain material relevant to her claim.  They are indeed highly germane to the issues of fund flow and the identities of the parties involved. There is a real prospect that the information will lead to the location or preservation of assets to which the Plaintiff is making a proprietary claim.

14.I am also satisfied that the scope of disclosure is not unduly excessive.  Essentially the Plaintiff seeks inspection of bank documents to enable her to identify and trace the whereabouts of her funds.

15.I have taken into account the privacy of the account holders and have exercised caution in this regard.  Balancing all factors, I am satisfied that a disclosure order ought to be made in favour of the Plaintiff, and the Banks should get costs of this application and for compliance with the order on an indemnity basis.

16.I should finally record that, since the 1st and 5th Defendants are not within the jurisdiction, they have not yet been served with the Amended Writ of Summons herein nor the Summons (although the Plaintiff has attempted to notify them of this hearing by email).  In this regard, Mr Chin properly accepted that this hearing is to be regarded as an ex parte application against them.

( Vincent Lung )
Deputy District Judge

Mr Edward Chin instructed by Chaudhry Solicitors, for the plaintiff

The 1st to 5th defendants, acting in person and absent

Other Judgments in This Case

Further hearings and rulings under DCCJ 2078/2022