Cs and Another v. Sw
Read the full judgment text of HCMP 1731/2023 on BabelCite. This High Court CFI judgment was delivered on 25 September 2024.
1. This case illustrates the undesirable consequences of entering into a commercial surrogacy agreement in one country, but the surrogate gave birth in another. The laws of both countries and Hong Kong were breached. The commissioning parents found out the need to seek a parental order only upon their application for divorce.
Cites 6 cases
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HCMP 1731/2023 [2024] HKCFI 2326 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE MISCELLANEOUS PROCEEDINGS NO 1731 OF 2023 ____________
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________________________ J U D G M E N T ________________________
1.This case illustrates the undesirable consequences of entering into a commercial surrogacy agreement in one country, but the surrogate gave birth in another. The laws of both countries and Hong Kong were breached. The commissioning parents found out the need to seek a parental order only upon their application for divorce. 2.The surrogacy arrangement was entered into between the 2nd Applicant and an agency in Cambodia. xxxxxxxxxxxxxxxxXX [M] (a boy) and XXxxxxxxxx XXXX [A] (a girl) (“the Twins”) were born in Thailand to a Thai young lady (“the Surrogate”), i.e. the Respondent. 3.By way of their Originating Summons dated 6 October 2023 (“OS”), the Applicants (“Wife” and “Husband”, respectively) seek:
4.The parties have previously applied for a parental order under HCMP 278/2022. The application was dismissed by this Court on 20 July 2023 due to various procedural problems. 5.The Wife (aged at the time of the OS) and the Husband (aged at the time of the OS), are both Hong Kong permanent residents. They got married in . 6.Since late , the Wife has had multiple gynaecological issues. From [9 years], her attempts to conceive through IVF had been unsuccessful. Due to the Wife’s infertility problem, the Applicants had started to explore the possibility of surrogacy since 2015. They were introduced to , a fertility clinic in XXXX XXXX, Cambodia (“the Agency”). 7.In April 2016, the Husband entered into the surrogacy agreement with the Agency (“Agreement”), whereby the Agency agreed, amongst others, to locate a suitable egg donor(s) and surrogate(s) for the Applicants at the initial cost of RMB 650,000. 8.Pursuant to the Agreement, 3 attempts to impregnate have been made between 2016 and 2017, but failed. 9.Finally, on 2017, two embryos formed with a donor’s eggs and the Husband’s sperms were placed into the Surrogate’s womb in Cambodia and she became pregnant with the Twins. 10.The Surrogate was a young Thai lady, aged 19 at the time of the Twin’s birth, living in Thailand. 11.On 2018, the Surrogate gave birth to the Twins prematurely in Bangkok, Thailand. 12.On 2018, through the help of the Agency’s agent in Thailand (“Thai Agent”), birth certificates of the Twins were obtained in Thailand. The Thai Agent advised that since the Surrogate was not married, the Husband would be registered as the father. The Surrogate was named as the mother on the birth certificates. On x x 2018, the Twins were issued Thai passports. 13.On 2018, the Applicants, the Surrogate and the Twins travelled to Hong Kong together. The Twins were granted visitors’ visas on the strength of their Thai passports. 14.A DNA test conducted on 2018 in Thailand, and another DNA test conducted on 2018 in the Government Laboratory in Hong Kong, established the Husband to be the Twins’ biological father. 15.In 2018, the Twins were issued Hong Kong identity cards and HKSAR passports on the strength of their biological linkage with the Husband. 16.Since the Twins’ arrival in Hong Kong, they have lived together with the Applicants as a family. They have been growing up and receiving education in Hong Kong. They should be studying primary 1 now. 17.The Husband is a businessman and the Wife a housewife. They are both hands-on in the upbringing of the Twins, together with the assistance of 2 domestic helpers. 18.In September 2021, the Husband filed for divorce on the basis of 1-year separation with the Wife’s consent. It was then that the Applicants first learned, from his divorce lawyers of the need to apply for parental orders in respect of the Twins. The divorce proceedings have since been stayed. C. COMPLIANCE WITH STATUTORY REQUIREMENTS 19.s.12 of the Parent and Child Ordinance, Cap 429 (“PCO”) provides as follows:
20.Accordingly, before a parental order may be granted, 9 statutory requirements have to be met. All references to “sections” below shall be to the PCO, unless otherwise indicated. 21.First, the Applicants must apply as a married couple: s.12(2). As the divorce proceedings have been stayed, this requirement is met. 22.Secondly, the Twins have to be carried by a woman other than the Wife as a result of placing embryos in her: s.12(1)(a). This has been met as the Surrogate carried the Twins, after being impregnated with embryos. 23.Thirdly, the gametes of at least one of the Applicants must have been used: s.12(1)(b). This requirement has been met as the embryos were created with the Husband’s sperms, fused with an egg donor’s eggs. 24.Fourthly, the application must be made within 6 months of birth: s.12(2). In the present case, the application should have been made on or before . The Applicants are around 4 years and 11 months out of time. They say that they had genuinely been unaware of the need to make this application until after the commencement of their divorce proceedings. Thereafter, they had tried to put forward this application as soon as possible. Extension of time to apply is in issue. 25.Fifthly, at the time of the application and the making of the order, the Twins’ home must be with the Applicants: s.12(3)(a). This was fulfilled at the time of issue of the OS and it was confirmed at this hearing that the family is currently living together in Canada. 26.Sixthly, either or both of the Applicants must be domiciled in Hong Kong, habitually resident in Hong Kong, or have a substantial connection with Hong Kong: s.12(3)(b). This requirement is fulfilled in respect of both Applicants, who are Hong Kong residents. 27.Seventhly, the Applicants have to be over 18 years old: s.12(4). This is fulfilled. 28.Eighthly, both the father of the Twins (including a person who is the father by virtue of s.10) and the Surrogate have freely, and with full understanding of what was involved, agreed unconditionally to the making of the order: s.12(5). The question is: who is the father under PCO? 29.s.10(2) provides that if the Surrogate was married at the time of the placing of the embryo, her husband who consented to the procedure is the father. This does not apply here as the Surrogate was not married. 30.s.10(3) provides that if no man is regarded as a father under s.10(2) (which is the case here), but:
the male partner would be regarded as the father. 31.The Surrogate has a cohabiting boyfriend (“the Boyfriend”) but he did not participate in the treatment, as confirmed by the Wife and the Surrogate. Accordingly, he is not a father by virtue of s.10(3) and need not be joined as a respondent. Nor is consent required from him under s.12(5). Anyhow, the Applicants’ solicitors have taken the caution of seeking a signed consent form from the Boyfriend. 32.While the Husband is stated on the birth certificates of the Twins as the father, as the birth certificates were issued in Thailand rather than Hong Kong, s.5(1)(b) does not assist him. That section provides that “if [a man] has been registered as the father of the child by an entry made … in any register of births kept by the Registrar of Births and Deaths under any Ordinance”, then he will be presumed to be the father. The birth registrations in Thailand were not entries made in any register of births in Hong Kong. 33.The Wife has exhibited 3 consent forms signed by the Surrogate on 22 July 2018, 27 August 2018 and 20 February 2024. She relies only on the last (Exhibit CSTE-6), which expressly states that the Surrogate has freely, and with full understanding of what was involved and the parental order sought, agreed unconditionally to the making of the parental order in the present application. This met the requirement of s.12(5). 34.Ninthly, as this Agreement involved payment, the Court must be satisfied that the payment was for expenses reasonably incurred or otherwise authorised or approved by the Court: s.12(7) PCO. As shall be demonstrated below, this is the most troubling aspect in this case as the surrogacy arrangement was plainly commercial in nature. 35.The issues disclosed in this case are:
36.The papers have been served on the Surrogate, who resides in Thailand, through Thai lawyers. She has signed the Acknowledgement of Service to confirm that she would not contest the OS. All subsequent affirmations have also been served on her. 37.The Court gave leave to serve the proceedings on Secretary for Justice (“SJ”), which was done. SJ takes a neutral stance and does has not participated. 38.The Court gave leave to refer to the Social Investigation Report dated 16 May 2022 prepared for HCMP 278/2022. In that Report, the social investigation officer made positive observations in respect of the Applicants as parents and their close relationship with the Twins. 39.An updated Social Investigation Report dated 8 February 2024 made similar observations. 40.With leave of the Court, the Applicants rely on 2 notarized opinions on Cambodian law and 3 on Thai law. E1. Prakas No. 679 on the Management of Human Blood, Reproductive Cells, Bone Marrow and Cells issued by the Ministry of Health dated 24 October 2016 (“Prakas No. 679”) 41.The Applicants were first introduced to the the Agency in 2015. The Agreement was entered into on 24 April 2016, before the effective date of the Prakas but the bulk of the performance which led to the birth of the Twins was after, and the births took place in Thailand. 42.There is nothing to differentiate treatment between Cambodian nationals and foreigners. Under Prakas No.679, it is not illegal to undergo egg extraction or donation and IVF treatment in Cambodia (whether or not the arrangement was to be carried out in or outside Cambodia), or to make payments for surrogacy arrangements, if the conditions under Articles 10 and 17 of the Prakas No.679 are complied with:
(1st Cambodian Opinion §§11, 12, 16, 20). 43.The Cambodian legal expert is of the opinion that if payment was made to the egg donors (which was the case here) and the Thai Surrogate underwent IVF procedures order for surrogacy outside Cambodia, that would mean that the procedures were prohibited under Prakas No. 679. It was for commercial purposes other than creating an embryo for a legally married couple to conceive children. It was illegal to undergo the IVF procedures in Cambodia for such purposes. 44.Article 12 of Prakas No.679 prescribes that “all surrogacy arrangements which are part of a service package to assist in conceiving children through assisted reproductive technology shall be prohibited.” This was obviously breached. E2. Law on Suppression on Human Trafficking and Sexual Exploitation dated 15 February 2008 (“Law on SHTSE”) 45.Article 13 of the Law on SHTSE, in existence before Prakas No. 679, criminalizes the selling or buying of a person:
46.Article 16 of the same Law further punishes “any person who sells, buys or exchanges another person for the purpose of delivering or transferring that person outside of the Kingdom of Cambodia.” 47.According to the Cambodian legal expert, there is no law on surrogacy as such before Prakas No. 679, but Cambodian courts may interpret surrogacy as an act of human trafficking. However, there has been no prosecution relating to commercial surrogacy prior to Prakas No. 679. 48.Article 4 of the Law on SHTSE states that “an accomplice and instigator shall include, but not limited to the form of organizing or directing another to commit any of the felonies or misdemeanors stipulated in this law.” E3. Cambodian Criminal Code dated 30 November 2009 49.Articles 28 and 29 of the Cambodian Criminal Code also extends criminal liability to an instigator and accomplice as described above. 49. Hence, the Applicants who used the Agency and paid for their services could be seen as accomplices subject to the aforementioned provisions. See the 1st Cambodian Opinion, §§17 and 23. 50.Article 332 of the Cambodian Criminal Code criminalizes the act of being an “intermediary for pecuniary gain between a person or a couple desiring to adopt a child and a woman agreeing to bear the child with the intent to give up the child to them.” 51.On 12 June 2017, guidelines were issued, pursuant to a Letter No. 253 dated 28 March 2017 by the Office of the Council of Ministers to the Ministry of Inferior, regarding the procedures for bringing infants of surrogacy to live abroad. Amongst others, a father who was the owner of the sperms could claim guardianship to bring the infant to live abroad. The court may decide in favour of the father if the unmarried surrogate agreed to hand over the infant to the father. The guidelines provided that it was applicable from the issuing date to 8 January 2018 only. As the Twins were born after this date, the guidelines were not applicable to this case. E4. Opinion of the Cambodian legal expert 52.Even though there appeared to have been violations to Prakas No.679, the Cambodian legal expert points out that under Prakas No.679, no provisions criminalize its violation. Consequently, it would be unlikely to constitute criminal offences if the embryo was created in Cambodia, and the surrogacy was conducted outside Cambodia without the involvement of a Cambodian surrogate. See the 1st Cambodian Opinion §25. 53.The Cambodian legal expert further points out that (1st Cambodian Opinion §26):
54.It was concluded at §30 of the 1st Cambodia Opinion that, given that the IVF procedure was conducted on the Thai Surrogate for surrogacy and commercial purposes in Cambodia, it was illegal under Cambodian laws. The Law on SHTSE, Cambodian Criminal Code, and Prakas No.679 prohibited the Applicants from using the Agency and paying for its services in identifying and confirming the egg donors and for all medical procedures involving the egg donors. Under the applicable laws, there were no provisions on the reasonableness threshold of the payment. The current case concerns mainly the IVF procedure which was principally governed by Prakas No. 679, of which its violation is unlikely to give rise to criminal offence. Even if the case was to be considered surrogacy and thus subject to criminal liability, competent authorities in Cambodia had also in the past considered relevant factors such as the interests of the infants, surrogates and intended parents in determining whether to prosecute such actions. See §31 of the 1st Cambodian Opinion. 55.The above conclusions are not dissimilar to those drawn by the Cambodian expert in A v. B & C [2021] EWFC 103 at §§14, 39-40 which Knowles J accepted:
56.However, unlike the present case, A v B & C did not involve a commercial arrangement. 57.The Cambodian legal expert cited examples of agency operators being imprisoned in 2017 for acting as intermediaries; and surrogates being arrested and released on condition that they were made to raise the children born of out surrogacies themselves. However, since the Twins were born, the Applicants have not been subject to the threat of prosecution. 58.In my view, a jurisdiction has the right to set its own law and policy (including moral policy) and it is not open to a foreigner to breach them even if he/she happens to have been spared criminal penalties. The limited period in which the guidelines in paragraph 51 above took effect indicated that Cambodia rejected commercial surrogacy. The making and execution of the Agreement was plainly in breach of Cambodian law. F1. Governing law of the Agreement under Thai law 59.Under s.13 of the Act on Conflict of Laws, B.E.2481 of Thailand, the applicable law is determined by the intention of the parties. If such intention, express or implied, cannot be ascertained, “the law applicable is the law common to the parties when they are of the same nationality, or, if they are not of the same nationality, the law of the place where the contract was made. 60.The Agreement did not stipulate the law applicable. As the Agency is incorporated under Cambodian law and the Applicants are Chinese, Cambodian law applied because the Agreement was made in Cambodia. Cambodian law was breached, as held above. F2. Legality of the surrogacy under Thai law 61.Under s.21 of the Protection of a Child Born by Medically Assisted Reproduction Technology Act B.E. 2558 (2015) of Thailand (“PCBMART Act”), “an operation of surrogacy” shall at least comply with the following:
See 1st Thai Opinion, pp2 and 4. 62.Whilst the Agreement was governed by Cambodian law, it appears that the birth of the Twins was governed by the PCBMART Act itself. If so, s.21(1), (2) and (4) were satisfied. The Surrogate had a child before the Twins were born. It is not clear what her Boyfriend had to consent to under s.21(4), but her Boyfriend clearly knew about the surrogacy and had consented to giving up his and the Surrogate’s rights to the Twins. 63.With regard to s.21(3), the Surrogate was not a blood relative of the Applicants. Although the Applicants did have female blood relatives, they had not thought of any of them as a surrogate. Although another woman could be a surrogate, the rules, procedures and conditions of the Minister of Public Health with the advice of the Committee had yet to be prescribed. The law, however, did not prescribe the consequences for the Applicants or the Surrogate. According to the 3rd Thai Opinion, the liability was with the medical practitioner and not the Surrogate. 64.The surrogate shall be of the same nationality as the legal husband or wife who wished to have a child. Additionally, a surrogate shall be at least 20 years of age and not more than 40. See 2nd Thai Opinion, §2(I). 65.It is not clear where these requirements were prescribed but if they were legal requirements, they were breached as well. The Husband is not a Thai. The Surrogate was aged 19 at the time she gave birth to the Twins. She was regarded as a minor under s.19 of the Thailand Civil and Commercial Code. 66.However, the Thai lawyer points out that in case the nationality of the Surrogate is not the same as the Husband, the law does not aim to punish the Surrogate or the Husband. It is only the medical practitioner who fails to comply with section 21 who shall be deemed to have violated ethics of medical profession under the law on medical profession: s.45 of PCBMART Act. See 2nd Thai Opinion, p3, §2(I). 67.According to the 3rd Thai Opinion there is no penalty for the Surrogate unless she was preparing the surrogacy for commercial benefits. 68.The Thai lawyer is of the view that the Agreement did not comply with Thai law and was unenforceable and invalid but the degree of criminality was very limited. The Husband was not expected to be subject to liabilities unless a commercial arrangement occurred. See 1st Thai Opinion, p3. 69.With respect, there is no issue of enforceability here. Rather there was a commercial arrangement. 70.Under s.24 of the PCBMART Act, “No person shall operate the surrogacy for commercial benefits”. Any violation, according to s.48, shall result in imprisonment for a term not exceeding 10 years and to a fine not exceeding 200,000 baht. 71.The Thai legal expert is of the opinion that the jurisdiction of the laws and regulations of Thailand apply to acts performed inside Thailand. It is illegal for anybody to profit from commercial surrogacy. Applying these principles, the Agency and the Surrogate had profited. 72.However, the Thai lawyer was of the opinion that in order to proceed with criminal legal action against the Husband in Thailand, a report of complaint had to be made by the injured person to the inquiry official at the police station. There is no precedent case in Thailand. See 2nd Thai Opinion, §2(I) on p3. 73.I find that the surrogacy was in breach of Thai law and the policy against commercial surrogacy. Again, it is not open to a foreigner to breach them even if he/she happens to have been spared criminal prosecution. F3. Parentage under Thai law 74.According to s.1546 of the Civil Code of Thailand, “A child born of a woman who is not married to a man is deemed to be the legitimate child of such woman.” 75.In a case that a father registered a marriage with a mother and conceived a child, the father is a lawful legal representative of the child. As the Husband did not register a marriage with the Surrogate Mother, the Husband can only be de facto father of the Twins. Approval for legitimation of the Twins for the Husband is required. Section 1548 provides that “when legitimation is applied for by the father, the child and the mother must give consent to the applicant.” See 2nd Thai Opinion, § 2III, p4. 76.There was no legitimation. Obtaining the birth certificates of the Twins was not legitimation. The Husband will be considered as legitimated father only when he requests for adoption of the Twins. There was no request for adoption, which involved a lengthy investigative process. 77.According to s.1547 of the Thailand Civil and Commercial Code, the Twins born of parents not married to each other is legitimate by 3 means only: (i) subsequent marriage of the parents; (ii) the registration made on application by the father; or (iii) a judgment of the court. These are apparently not complied with. 78.Chapter 5 of the Thai Civil and Commercial Code gives 2 main scopes of parental powers – parental power over a child and managerial power over a child’s property. The Thai lawyer is of the opinion that a matter of parental power over a child is related to public order and good moral of people in society. Therefore, by law a revocation order could only be obtained from the court only. The mother and father of a child are prohibited from jointly revoking a parental power over a child and transferring such parental power to a third party by themselves. But a revocation of parental power is not feasible in this case because there is no evidence that the Surrogate or the Husband is adjudged incompetent or quasi-incompetent, or has abused his or her parental power as regards the Twins’ person, or is guilty of gross misconduct: s.1582 of the Civil and Commercial Code. 79.Although the Hong Kong High Court renders a parental order to the Applicants, the Thai lawyer is of the opinion that it does not affect the Surrogate’s rights as a mother. To revoke her rights, it is required that “the person who really takes care of the Twins to request the [Thai] Court for the revocation of her parental power over the Twins”. 80.I find that this is a case where the surrogacy was unlawful under Thai law, which does not permit privately arranged transfer of parental rights. The Twins were legitimate children of the Surrogate only. Thai law which permits revocation of parental rights is not applicable. Notwithstanding the consent of the Surrogate and her Boyfriend, the Surrogate’s rights and responsibilities over the Twins have not been removed. The Husband has not applied for legitimation or adoption. He has no legal rights over the Twins under Thai law. G. WHETHER THE SURROGACY ARRANGEMENT WAS IN BREACH OF HONG KONG AND FOREIGN LAWS 81.The findings under Sections E and F above reveal breaches of law and policies of both Cambodia and Thailand. There is also breach of s.17 of the Human Reproductive Technology Ordinance, Cap 561 (“HRTO”), in Hong Kong which prohibits surrogacy arrangements on a commercial basis (discussed below), whether made in or outside Hong Kong. H. WHETHER TIME EXTENSION SHOULD BE GRANTED 82.Despite the statutory time limit, the Court has power to extend the time for application, having regard to the period of delay, the reasons for delay, the prejudice to anybody and public policy: see FH v. WB [2019] 5 HKC 99, §88. 83.As children are involved, the Court will take into account their best interests (whether pursuant to s. 3(1) of the Guardianship of Minors Ordinance (Cap. 13) or otherwise: FH v WB, at §34:
84.The following matters in this case are pertinent. 85.Firstly, the Applicants were not legally trained and were told by their friend and Agency that surrogacy was legal in both Cambodia and Thailand. I find it doubtful whether those persons were qualified to do so and what the bases of their advice was. It is hard to believe that the Applicants would not even sense something against the law for them to enter into the Agreement at a place outside Hong Kong, where they had no apparent connection. Anyway, it is their evidence that it did not occur to them to seek legal advice in Hong Kong or abroad. 86.That said, I do not think there is evidence of the Applicants entering into the Agreement in deliberate violation of the law of either Cambodia or Thailand. It was their desperate wish to have children (arising also out of pressure from in-laws in a traditional Chinese family) that drove them to enter into the Agreement without proper advice and they were probably victims of the Agency as well. 87.Secondly, the Applicants had been unaware of the need to make this application until after the commencement of their divorce proceedings. 88.It took them another 6 months to issue the OS in HCMP 278/2022 on 2 March 2022. By then the Applicants were already out of time by 40 months. 89.On 8 March 2022, this Court raised requisitions in that case. There was further correspondence between the Court and the Applicant’s then legal team as to the further conduct of the matter. Unfortunately, the case had not progressed expeditiously, such that the validity of that OS expired without the Surrogate being served. 90.The Applicants had twice changed counsel, until the present team came on board since July 2023. Upon legal advice, the Applicants obtained legal opinions. The 1st Thai Opinion and 1st Cambodian Opinion were available in late September 2023. The OS was filed on 6 October 2023. By then, it was already about 2 years after the Applicants first learned of the need to do so. 91.There is nothing suggesting that the late filing of the OS was caused by the Applicants deliberate delay or ill-intention. The involvement of foreign law in two countries complicated the matter. There was language barrier and sudden loss of contact with the Surrogate. The fact that the Surrogate lived in a remote part of Thailand made service difficult. Efforts have also been made to be fair to the Surrogate by having Thai lawyers explain relevant documents and procedure to her. The progress of this case was further delayed by the need to notarize documents, the lawyers’ failure to promptly seek certified translation as directed on 26 February 2024 and the delay in answering the Court’s requisitions dated 11 June 2024 due to financial constraints of the Applicants. 92.Thirdly, the Twins’ best interests are important. They, being wholly innocent, should not be barred from the benefits that parental orders would bring, simply because of their parents’ failure to ascertain fully the legal requirements, if all other conditions are met. 93.For the reasons given in Section H, there are good reasons shown and I extend the time for application to 6 October 2023. J. WHETHER PAYMENTS SHOULD BE AUTHORIZED OR APPROVED BY THE COURT UNDER PCO s.12(7) J1. Legal principles under s.12(7) 94.To decide whether the payment was for expenses reasonably incurred or should otherwise be authorised or approved the Court should ask the following questions:
See FH v. WB at §110, Au-Yeung J; Re A & B [2019] 5 HKLRD 366 in §34, Au-Yeung J; Re STP [2021] 4 HKLRD 719, §33 B Chu J. 95.This Court in A & B v. E at §35-45 has summarized the relevant considerations as follows:
J2. Money/benefit given or received by the Applicants 96.No money/benefit had been received by the Applicants under s.12(7). However, they had given around HK$1,034,900 pursuant to and in connection with the Agreement, the breakdown of which was as follows:
97.The payments made to or via the Agency were: (1) referrable to Clause B of the Agreement; and (2) largely documented. They fell within the terms of s.12(7)(c) and (d). 98.The payments were made in stages according to Clause B of the Agreement:
J3. Whether the money/benefit was for expenses 99.Item 1 in Table 1 (RMB700,000 paid to the Agency) included:
100.Item 1 would have covered expenses and profits. The level of profits to the Agency is unknown due to lack of breakdown. 101.Item 2 in Table 1 (RMB148,762) was incurred because the Twins were born prematurely and they stayed in incubators for over a month. It was an expense. 102.Item 3 in Table 1 would have been partly expenses and partly benefits. This is because HK$86,000 incurred over a period of, say, 10 months of pregnancy and post-natal care was huge, in view of the low living standard in Thailand, compared to Hong Kong. 103.Item 4 of Table 1 was a “benefit” and not expense. J4. Reasonableness of the expenses 104.As regards item 1 in Table 1, there were no provisions under Cambodian law governing the reasonableness of such payments. As Cambodian law prohibited any payment to the Agency, donors and surrogates on a commercial basis, Item 1 was unreasonable. 105.I see no cause for regarding item 2 in Table 1 to be unreasonable. 106.What troubles the Court was the overall expenses which gave a clear picture of the commercial nature of the surrogacy arrangement. Ms Choy, counsel for the Applicants, has very helpfully prepared a table summarizing the expenses on surrogacy for cases decided in Hong Kong.
107.There are 4 special features in the expenses in this case:
108.Those 4 features pointed to nothing but a commercial arrangement, prohibited by Hong Kong, Cambodia and Thailand. 109.The payments to the Agency and the Surrogate were plainly unreasonable when the Court considers the wider picture of what actually happened in this case and compared it to different parts of the world where surrogacy took place. This case was a plain case of violation or affront to public policy of 3 jurisdictions. 110.The Surrogate had freely and voluntarily provided her service and her Boyfriend consented to it. Her 3rd consent form confirmed that she was not subject to exploitation or undue pressure in entering into the surrogacy arrangement. From her conduct on learning about this application, the assistance she rendered to the Applicants, and the lack of signs of any emotional/psychological problems on her part, I am satisfied that she had not been exploited when she entered into the surrogacy arrangement but, rather, obtained huge profits from it. She had used the money to purchase land for farming and to run a grocery shop. 111.As for item 4 of Table 1, it was a very generous post-natal gift, as opposed to an inducement, to thank the Surrogate for enabling the Applicants to have a family with adorable twins. It does not require approval or authorization of the Court. 112.Despite part of the expenses being unreasonable, I have considered other factors. 113.Firstly, the best interests of the Twins. Without approving or authorizing the expenses, it is virtually impossible to consider granting a parental order. 114.Secondly, I accept that the Applicants had genuinely been unaware of the need to apply for a parental order before the Husband’s divorce lawyers alerted them to the same. Having learnt of the need to do so, the Applicants took steps to locate the Surrogate in order to properly serve her with the proceedings. They were fair to her, procuring translation of documents to ensure that she understood the purpose of the present proceedings. They have also made no attempt to defraud the authorities and made their best endeavours to comply with the laws of Hong Kong. 115.Thirdly, this is a case where the Applicants are effectively using ignorance of the law in 3 jurisdictions to support their application for a parental order out of time. Ignorance of the law has never been a defence for breaching the law. This Court takes the view that the duty has always been on the commissioning parents to ascertain the legality of an intended surrogacy arrangement. 116.However, one can see from Table 3 that back in 2016 when the Agreement was entered into, there had not been any precedent in Hong Kong on the issue of surrogacy. It was not surprising that commissioning parents were unaware of the full implications of commercial surrogacy. 117.In the present case, despite the breaches of law and policies against commercial surrogacy in 3 jurisdictions, the dubious explanation of the Applicants (§85 above) and taking into account that the law was entirely untested in 2016, there is room for the Court to exercise leniency where the best interests of the Twins demand it. The Twins’ lifelong legal status with the Applicants surpass the latter’s ignorance of the law. 118.Considering all the factors in this Section, I approve the unreasonable expenses in items 1 and 3 of Table 1 in the total amount of RMB778,429 (~ HK$850,000), ie about 84% of the total sum incurred. Item 2 was a reasonable expense; and item 4 was a reasonable benefit to the Surrogate. They do not require approval or authorization of the Court. K. WHETHER PARENTAL ORDERS SHOULD BE GRANTED 119.All the statutory requirements under section 12 are met with the grant of extension of time and approval of unreasonable expenses/benefits. 120.Although the Husband is named as the father on the birth certificates of the Twins, he is not the “legal” father according to Hong Kong or Thai law. Neither is the Wife the legal mother. 121.Throughout the past 6 years, the Applicants have been the only parents known to the Twins. The Social Investigation Reports confirm that both Applicants have good relationship with the Twins. Going forward, without the Applicants being acknowledged as the legal parents of the Twins, there can be difficulties and embarrassment both to parents and children. 122.The Surrogate has never taken interest in the lives of the Twins. Given the love, care and quality of life that the Applicants have given to the Twins over all these years, it could not be in the Twins’ interests to send them back to the Surrogate, a stranger who lives in a foreign land. Parental orders would reflect the intentions of the Applicants and the Surrogate and the reality of lives of the Twins, but would not prejudice anyone. 123.The relinquishment of parental rights is not recognized in Hong Kong: S v J [2017] 5 HKLRD 129, at § 27, Au-Yeung J. Nor is it recognized under Thai law. I have to acknowledge that any parental order to be granted may not have the full transforming, irreversible effect on the Surrogate as described in FH v WB (paragraph 83 above),because there has not been valid removal of her rights and responsibilities as a mother under Thai law. 124.Ms Choy submits that a parental order is a judgment in rem as opposed to a judgment in personam. Once granted, a judgment in rem binds the whole world. She relies on several authorities:
125.Without disrespect, I have reservations as to the breath of Ms Choy’s proposition. Each jurisdiction has the right to decide its law on parentage and it is not binding on another jurisdiction. For example, in FH v WB, §§12-13,the commissioning parents already obtained an order in California declaring them to be genetic and legal parents of the twins and declared the surrogate and her husband not to be legal parents. On the twin’s birth certificates in California, the commissioning parents were stated to be their parents. Even so, the Californian order did not bind the Hong Kong courts and parental orders had to be sought under s.12. 126.Accordingly, the parental orders would only bind the Surrogate and the domestic community in Hong Kong. They would not bind, eg the Thai government. See also the opinion of the Thai legal expert in paragraph 79 above. 127.Considering all factors, it is appropriate to grant parental orders. 128.Ms Choy raises an issue as to whether there should be re-registration of the Twins’ birth under BDRO s.12C, which provides that:
129.Re-registration is an administrative act for the Registrar of Births and Deaths. It is not an issue before the Court and I decline to express any view on it. 130.For the reasons given, parental orders are justified. I therefore order as follows:
131.I thank Ms Choy for her assistance. 132.It is regrettable that this OS has taken such a long time to come to conclusion. Whilst part of the reasons have been set out in §§87-91, practitioners should be alert to the needs to comply with legal requirements and any timetable laid down by the Court. It would not be conducive to the quick disposal of children cases if the Court has to raise requisitions on fundamental matters like legal qualifications of an expert, who provided translations and whether that person was conversant with the English and foreign language, whether there are legible copies of documents and remind lawyers to serve documents on a respondent. It would also be helpful if there is clear summary of breaches of the law in each jurisdiction, however many there may be, so that the Court can assess the extent of breach of law. 133.It has always been the law and policy of Hong Kong to prohibit commercial surrogacy arrangements, whether entered into or outside Hong Kong. Lately, on 24 May 2023, the Acting Secretary for Health, Dr Libby Lee, wrote to the Legislative Council explaining the current public policy:
S.17 of HRTO still stands in our statute books. 134.In the past 7 years since S v J [2017] 5 HKLRD 129, the Courts have, by various judgments, clarified the law of surrogacy. A summary of the development of surrogacy law in Hong Kong, the legal principles for interpreting s.12 and the procedure for application have been set out in B Chu J’s comprehensive and helpful judgment in Re T & L (Parental Order: s.12 Parent and Child Ordinance (Cap.429)) [2022] 2 HKLRD 685. The Courts have identified examples of commercial surrogacy arrangements and frowned upon the exorbitant charges, eg FH v WB, §122 and Table 3 above. The Courts of Hong Kong should not condone or be seen to condone commercial surrogacy arrangements. 135.A trend can be seen from the cases. At the start of 2017, where commissioning parents entered into surrogacy arrangement because they had resided or studied in jurisdictions where commercial surrogacy arrangement was lawful: FH v WB, §202. It was not surprising that they mistakenly thought that the same applied to Hong Kong. There then emerged cases where there appeared to be no connection at all between the commissioning parents and the place where the surrogacy took place: eg Re STP [2021] 4 HKLRD 719, §§12-13; Re T&L [2022] 2 HKLRD 685; and the present case. The present case even involved 2 jurisdictions. 136.This case that breached the laws in 3 jurisdictions sounds out a serious warning to commissioning parents. If, in future, they want to run the argument that they were ignorant of the law when entering into the surrogacy arrangement, they should satisfy the Court as to the following:
137.It is genuinely hoped that commissioning parents would not choose to commence the precious life of a child with an illegal arrangement, thereby putting their child at risk of not being able to obtain a parental order.
Ms Alison Choy, instructed by Cheng & Ng, for the 1st and 2nd Applicants at the first hearing and subsequent written submission Ms Esther Cheng of Cheng & Ng for the 1st and 2nd Applicants at the second hearing The Respondent was not represented and did not appear [1]. Defined in PCO s. 2 to mean ‘medical, surgical or obstetric services administered for the purpose of assisting a woman to carry a child’. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||