Lcfm v. Lsf
Read the full judgment text of CAMP 339/2023 on BabelCite. This Court of Appeal judgment was delivered on 10 September 2024 before Hon Barma JA and Ng J.
Family law – divorce – consent order – undertaking – release – leave to appeal – reasonable prospect of success – 2nd Applicant sought leave to appeal against dismissal of application to release from undertaking in Consent Order – Court held Judge did not misdirect himself, did not fail to consider relevant circumstances, and no need for clarification of principles – Appeal dismissed.
Legal issues: Ground 1 · Ground 2 · Ground 3
Outcome: Summons dismissed. Leave to appeal refused.
Cited by 2 cases · Cites 6 cases
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CAMP 339/2023, [2024] HKCA 852 On Appeal from [2023] HKFC 121 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF APPEAL MISCELLANEOUS PROCEEDINGS NO. 339 OF 2023 (ON AN INTENDED APPEAL FROM FCJA NO. 2346/2018[1]) ________________________ BETWEEN
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________________________ J U D G M E N T ________________________ Hon Ng J (giving the Judgment of the Court): Introduction 1.By Summons filed on 3 November 2023 (“Summons”), the 2nd applicant (“H”) renews his application for leave to appeal against the Order made in para 93(a) of the decision of HH Judge G. Own (“Judge”) dated 30 June 2023 (“Decision”) whereby the Judge dismissed inter alia para 2 of H’s Amended Summons filed on 22 April 2021 in the Family Court (“2021 Amended Summons”), as well as paras 93(b) and (c) of the Decision which dealt with costs. 2.Under para 2 of the 2021 Amended Summons, H sought an Order inter alia that H be released from the undertaking to the Court and to the 1st Applicant given in Recital paragraph H (“Undertaking H”) of the Consent Order made by the Judge dated 18 June 2019 (“Consent Order”) whereby the Judge gave the 1st Applicant free access to a property located in Marina Cove, 280 Hiram’s Highway, New Territories (“Property”) and the facilities therein during their joint lives. 3.By way of background, the 1st applicant (“W”) is the former wife of H. They are the parents of two daughters (“Children”), who were born in 2008 and 2011. Upon the applicants’ joint application for divorce filed in May 2018, a decree nisi was made in January 2019, whereupon joint custody of the Children was granted to the applicants. 4.The parties sought to resolve the question of financial settlement by way of a Consent Summons dated 17 June 2019 the terms of which were embodied in the Consent Order of 18 June 2019. 5.The substantive terms of the Consent Order were preceded by Recitals paragraph (A) to (I) which contained various acknowledgement(s), agreement(s) as well as undertakings made by H to the Court and to W. Undertaking H was one of the four undertakings given by H in the Consent Order. 6.By the 2021 Amended Summons, H sought various reliefs over children’s matter and financial arrangement between the parties, as well as a release of H’s undertakings at Recital paragraphs C and H in the Consent Order. A release of Recital paragraph C is no longer pursued in this Court. The Trial of the 2021 Amended Summons and the Decision 7.The trial of the 2021 Amended Summons was heard before the Judge for a total of 3.5 days, during which both H and W gave evidence and were cross-examined. 8.H’s case as regards Undertaking H was set out in paras 24 to 26 of the Decision as follows:
9.W’s case as regards Undertaking H was set out in paras 29 to 32 of the Decision as follows:
10.In reaching the Decision, the Judge made various material findings and observations at the following paragraphs based on the evidence at trial.
11.In the end, the Judge refused to release H from Undertaking H of the Consent Order. 12.On 28 July 2023, H filed a Summons for leave to appeal against the Decision. H’s application was determined by the Judge on paper. By a decision dated 20 October 2023[2] (“the Leave Decision”), the Judge held that H’s appeal did not have a reasonable prospect of success and that there were no other reasons in the interests of justice that the appeal should be heard. H’s application for leave to appeal was accordingly dismissed. Deliberation 13.Leave to appeal shall not be granted under section 63A of the District Court Ordinance, Cap 336 unless this court is satisfied that the appeal has a reasonable prospect of success or there is some other reason in the interests of justice that the appeal should be heard. The relevant test of whether an appeal has a reasonable prospect of success under section 63A is whether the applicant for leave can show that he has an arguable case with reasonable chances of success on appeal. A reasonable prospect of success therefore means an appeal with prospects that are more than “fanciful” but which do not need to be shown to be “probable”: KNM v HTF HCMP288/2011 unrep., 7 September 2011 per Fok JA (as he then was). 14.It is well-established that the Court of Appeal may only interfere with the exercise of the judge’s discretion in accordance with the principles in Hadmor Productions Ltd v Hamilton [1983] 1 AC 191. 15.Hence, the grounds on which an appellate court is entitled to interfere with an exercise of discretion are limited and it cannot interfere merely because it would have reached a different conclusion had it been hearing the application at first instance. It can only interfere in three cases: (1) where the judge has misdirected himself with regard to the principles in accordance with which his discretion had to be exercised; (2) where the judge, in exercising his discretion, has taken into account matters which he ought not to have done or failed to take into account matters which he ought to have done; or (3) where his decision is plainly wrong: Bright Shipping Ltd v Changhong Group (HK) Ltd (No.2) [2019] 5 HKLRD 30 at [5] per Kwan VP. 16.H has put forward 3 grounds of appeal in the draft Grounds of Appeal. Ground 1 17.“The Judge misdirected himself as to the law of when a party could be released from an undertaking, or when it may be “varied”. He applied too narrow a test of the circumstances in which a review could be undertaken of an undertaking. He adopted an approach which was too narrow and black letter when he should have given effect to the spirit of the parties and achieving what was fair.” (emphasis added) 18.In his written submissions dated 3 November 2023 (“H’s Skel”), H submits:
19.This Court does not accept H’s submissions. 20.First, the 2021 Amended Summons which led to the Decision was for a release of Undertaking H, not to vary it. Nor is there a replacement Undertaking on the face of the 2021 Amended Summons. This is to be contrasted with para 3 of the 2021 Amended Summons in which H sought to be released from Undertaking C in the Consent Order and offered a replacement undertaking in its place. 21.Thus the present application is not about raising a point of law not previously raised before the Judge – there was simply no application before the Judge to vary Undertaking H or to replace it with another one. H just wanted to completely get out of an undertaking he had voluntarily given to the Court and W in the circumstances set out above. 22.Second, D v D concerned an application, made by a Petitioner husband, in which he sought either to be discharged from a number of undertakings given by him in a consent order dated the 26 July 2010 in their entirety, or alternatively for other undertakings to be accepted in their place. At para 22, HH Judge Melloy observed as follows:
23.Further, AEM was concerned with an application to vary periodical payment orders pursuant to section 11 of Matrimonial Proceedings and Property Ordinance, Cap 192 (“MPPO”). The oft-quoted passage referred to in H’s Skel can be found at [14 (4)] as follows:
24.On the other hand, in setting out the applicable principles, the Judge, at para 19 of the Decision, quoted the following passage of L v C[3] at [22] as follows:
25.Two observations can be made from the quotation of L v C above. 26.First, it can be seen from (3) that the Judge was clearly aware he should not be confining himself only to a consideration of the 4 situations listed – one or more of those four situations are only what is generally required. 27.Second, the Judge was also clearly aware of the breadth of his judicial discretion which was to do what was just. The reference to Kensington Housing Trust v Oliver (1997) 30 HLR 608 at 613 in (4) is important. At 613, Butler-Sloss LJ observed that:
28.There is really no material difference between what was advocated in L v C, D v D or AEM v VFM. Looking at the matter in this way, we do not consider the lack of reference by the Judge to D v D or AEM v VFM to be an “important omission” as suggested in H’s Skel. After all, there are no doubt other authorities on the subject which set out the general principles and the Judge cannot be expected to cite all of them if they do not add anything significantly different from those he had actually referred to in the Decision. 29.Importantly, having considered the Decision as a whole, it does not appear to this Court that the Judge’s approach to the 2021 Amended Summons in following the guidelines in L v C is any different from that advocated in D v D or AEM v VFM. The Judge understood and did what he considered to be just, by reference to all of the relevant circumstances of the case, including the basis upon which the parties originally entered into the Consent Order and whether there was any material change of circumstances. In respect of the latter, the Judge had already made a finding of fact that there was no material change of circumstances since the giving of Undertaking H. 30.For these reasons, this court does not agree the Judge had fallen into error of law. Ground 1 must be rejected. Ground 2 31.“Having adopted a test which was inappropriately narrow, the learned Judge failed to have regard or sufficient regard to all the relevant circumstances of the case. Had he done so, he would have either discharged the Undertaking in its entirety and/or accepted a replacement Undertaking or varied the agreement as a variable maintenance agreement.” 32.“Specifically, the learned Judge failed to have regard to:
33.In his Skel, H submits that in an echo of Ground 1, the Judge failed to have regard to all the relevant circumstances of the case. Ground 1 is because he too narrowly interpreted the authorities. Ground 2 is that he failed to place sufficient, or any, weight on the following matters referred to, either in isolation or in combination. 34.The short answer to this Ground 2 can be found in the reasons for rejecting Ground 1 discussed above: the Judge had not too narrowly interpreted the authorities; nor had he failed to have regard to all the relevant circumstances of the case. 35.While H submits that the Judge has failed to take into consideration this or that, there is no explanation in H’s Skel why those are relevant considerations. Take the most obvious example of “The best interests of the Children”. How could the best interests of the Children inform the Judge that he should or should not remove W’s free access to the Property? Take another example of the “desirability of the ‘clean break’ achieved by the Consent settlement”. The clean break achieved by the Consent Order was only concerned with the financial settlement between H and W and the maintenance for W and the Children. Again, how could a financial clean break inform the Judge that he should or should not remove W’s free access to the Property? 36.In so far as H complains the Judge had failed to have regard to the understanding of the parties as to the meaning of the provision granting “free access” or the Undertaking's original utility and intention are concerned, it is difficult to see how the Judge could have ascertained the subjective understanding of the parties and H’s subjective intention in giving Undertaking H. 37.In Sirius International Insurance Company (Publ) v FAI General Insurance Ltd and others [2004] UKHL 54 at [18], Lord Steyn observed[5] that:
38.As far as the circumstances in which the parties entered into the Consent Order are concerned, the Judge had gone to great length in explaining them in the Decision: see para [10] above. 39.As submitted in W’s skel, those factors allegedly not considered by the Judge can at most show that the practical effect of the Undertaking H turned out to be not what H had assumed or expected. This does not render it just to release H from it, given that he voluntarily gave it to the Court and W and during cross-examination gave an answer which led the Judge to conclude it was his informed consent to sign the 3rd Consent Summons which led to the Consent Order with Undertaking H. Further, H did not suggest there was any factor(s) vitiating his consent to give Undertaking H. 40.In H’s Skel at para 13, H submits that Undertaking H had a specific intention, whose purpose required updating. W submits and this court agrees that at best, this is referring only to H’s subjective intention. But how was the Judge supposed to ascertain H’s real subjective intention in giving the Undertaking? As for the updating part, W submits that is no more than saying that H has had a change of heart now and wants to wriggle out of the Undertaking. This court agrees. 41.As far as the suggestion that W’s alleged subsequent change of mind is concerned, this was dealt with in para 67 of the Decision: there was no finding of fact that W had changed her mind or that constituted “material change of circumstances”. 42.For these reasons, Ground 2 must also be rejected. Ground 3 43.“Other than AEM v VFM, decided 15 years ago, there is little Court of Appeal authority in relating to the discharge of an undertaking in matrimonial cases. Undertakings are increasingly prevalent and of huge significance in matrimonial cases. It is in the interest of justice and wider public interest for the Court of Appeal to take this opportunity to clarify the principles relating to the variation, discharge, and replacement of an undertaking. This is particularly important given the inconsistencies between the strict approach and confines prescribed by L v C and the more holistic approach in D v D, which should be preferred.” 44.To start with, as this court sees it, there is no inconsistency between L v C and D v D. In L v C, Deputy Judge Grace Chan made it abundantly clear that the four situations where undertakings may be released are “in general” only. In other words, they serve as general guidance and as far as we are aware, no Court had said that they represented an exhaustive and exclusive checklist. Further, Deputy Judge Grace Chan observed that whether to discharge one from an undertaking is ultimately a matter of judicial discretion to be exercised if it is “just to do so”. This is in line with D v D, which held that the “overall intention is to achieve a fair outcome.” What more is there to clarify? 45.We are of the view that the facts of this case do not raise any novel point of law which requires clarification. Any attempt to do so would be an academic exercise without a proper factual context. 46.For these reasons, Ground 3 is also rejected. Disposition and costs order nisi 47.For all the above reasons, this court is not satisfied that the appeal has any reasonable prospect of success or there is some other reason in the interests of justice that the appeal should be heard. Indeed, this court considers the application to be totally without merits. There shall be an order that no party may under RHC O 59 r 2A(7) request the determination to be reconsidered at an oral hearing inter parties. 48.The Summons is hereby dismissed. 49.Costs normally follow the event. We accordingly make an Order nisi that costs be to the 1st Applicant to be summarily assessed. This costs Order nisi shall become absolute unless an application is made to vary the same within 14 days from the date of this Judgment. In the event that an application is made to vary the costs order nisi, the application will be dealt with on paper, and this court will give further directions on the application, including the length of the written submissions which may be filed by the parties. 50.In the event the costs Order nisi is made absolute, leave to the 2nd Applicant to lodge a statement of objection to the 1st Applicant’s Statement of Costs within 7 days. The assessment will then be disposed of on paper.
Written submissions by Mr Richard Todd KC, Mr Peter Barnes and Mr Sebastian Leung, instructed by Messrs. Charles Russell Speechlys LLP for the 2nd Applicant Written submissions by Mr Eugene Yim, instructed by Messrs. Hampton, Winter and Glynn for the 1st Applicant |
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