Suen Hung Shan v. Wong & Ouyang (HK) Ltd
Read the full judgment text of CACV 427/2023 on BabelCite. This Court of Appeal judgment was delivered on 22 October 2024.
1. The is the Defendant’s application to strike out the Plaintiff’s Notice of Appeal dated 20 December 2023 on the ground that it is frivolous, vexatious and/or an abuse of the court’s process, or, alternatively, for security for costs of the appeal.
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CACV 427/2023, [2024] HKCA 891 On Appeal From [2023] HKCFI 3006 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF APPEAL CIVIL APPEAL NO 427 OF 2023 (ON APPEAL FROM HCA NO 1796 OF 2020) ________________________
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________________ J U D G M E N T ________________ Hon Chow JA (giving the Judgment of the Court): 1.The is the Defendant’s application to strike out the Plaintiff’s Notice of Appeal dated 20 December 2023 on the ground that it is frivolous, vexatious and/or an abuse of the court’s process, or, alternatively, for security for costs of the appeal. 2.Having considered the papers and the submissions before us, we consider that it is appropriate to deal with the present application on paper without an oral hearing pursuant to Order 59, rule 14A(1) of the Rules of the High Court, Cap 4A. BRIEF BACKGROUND 3.For the purpose of disposing of the present applications, the following brief summary of the background facts of this case, taken largely from the written judgment of Deputy High Court Judge H Au-Yeung dated 24 November 2023 (“the Judgment”), should suffice. 4.The Plaintiff was an employee of the Defendant, a company engaged in architecture practice. 5.By an employment agreement dated 21 December 2018 (“the 1st Employment Agreement”), the Defendant employed the Plaintiff as a Senior Resident Architect for a project known as “Galaxy Cotai, Mega Resort Lot 3, Macau” (“the Resort Development”) for a fixed term of 18 months commencing on 28 January 2019. Prior to the expiry of the three-month probation period under the 1st Employment Agreement, the Defendant terminated the Plaintiff’s employment with effect from 18 April 2019. 6.Arising out of the termination of his aforesaid employment, the Plaintiff commenced proceedings against the Defendant in the Labour Tribunal (LBTC 2091/2019) (“the 1st Labour Tribunal Case”). Those proceedings were subsequently settled by the parties pursuant to a settlement agreement dated 27 August 2019 (“the Settlement Agreement”). 7.The Settlement Agreement, printed on the Defendant’s letterhead and signed by the parties, provides as follows:
8.Pursuant to Clause 1 of the Settlement Agreement, the parties entered into a new employment agreement contained in a letter also dated 27 August 2019 (“the 2nd Employment Agreement”), under which the Defendant employed the Plaintiff as a Technical Manager in Hong Kong in relation the development of Two Taikoo Place (“the Office Development”). 9.The 2nd Employment Agreement provides as follows:
10.On 28 August 2019, the Plaintiff obtained leave from the Labour Tribunal to withdraw all his claims made in the 1st Labour Tribunal Case. 11.By a letter dated 2 June 2020 (“the Termination Notice”), the Defendant informed the Plaintiff that his employment under the 2nd Employment Agreement would be terminated on 27 July 2020. 12.On 11 September 2020, the Plaintiff commenced fresh proceedings in the Labour Tribunal (LBTC 1833/2020) (“the 2nd Labour Tribunal Case”), in which the Plaintiff claimed against the Defendant for the total sum of HK$4,718,450, made up as follows:
13.On 6 October 2020, Mr David Chan, Presiding Officer of the Labour Tribunal (“the Presiding Officer”), made an order to transfer the 2nd Labour Tribunal Case to the Court of First Instance. The Plaintiff’s Claim Form filed in the Labour Tribunal was ordered by Master S H Lee on 9 December 2020 to stand as the Writ of Summons in the transferred proceedings. 14.In the Statement of Claim filed by the Plaintiff on 22 January 2021, he sought an order that he be re-employed by the Defendant. Alternatively, he claimed for the said sum of HK$4,718,450. The Judge summarised the Plaintiff’s claims as follows:
THE JUDGMENT 15.The Plaintiff’s claims were tried by the Judge on 3 October and 6 November 2023. On 24 November 2023, the Judge handed down the Judgment. 16.Relevantly for the present purpose, the Judge made the following material findings in the Judgement:
17.The Judge also dealt with the Plaintiff’s complaint that although the Defendant had served two witness statements, namely, one by Mr Lam Ping Hong Robert (“Mr Lam”) (a senior director of the Defendant), and the other by Mr So Wing Kei Wayne (“Mr So”) (an associate director of the Defendant), it only called Mr Lam to give evidence at the trial, thereby depriving the Plaintiff of the opportunity to cross-examine Mr So. The Judge considered the Plaintiff’s complaint to be misconceived because the Defendant had the right to decide whether or not to call any particular witness to give evidence in court, even though a witness statement of that witness had previously been served. Further, the Judge did not find Mr So to be an important witness on the facts of this case, and held that no adverse inference should be drawn against the Defendant for its failure to call Mr So as a witness. 18.Accordingly, the Judge dismissed the Plaintiff’s claims, and made a costs order nisi that the Plaintiff should pay the Defendant’s costs of the action, to be taxed if not agreed. 19.On 8 December 2023, the Plaintiff made an application to vary the costs order nisi. The Judge rejected that application by a decision dated 23 January 2024. THE PRESENT APPEAL 20.In the Plaintiff’s 14-page Notice of Appeal dated 20 December 2023, the Plaintiff seeks (i) a declaration that the Settlement Agreement has been repudiated by the Defendant, (ii) an order that the Defendant do pay to the Plaintiff “the remaining claim items” of the 1st Labour Tribunal Case, and (iii) an order that the Defendant do pay to the Plaintiff the balance of the salary, gratuity and “other associated benefits” under the 2nd Employment Agreement up to the full completion of the Office Development. These are not the same relief sought by the Plaintiff in his Statement of Claim. 21.A total of 13 grounds of appeal have been advanced by the Plaintiff in Notice of Appeal. They will be considered below. 22.The Plaintiff also raises, in his affirmation of 4 March 2024, a jurisdictional challenge, contending that the Judge erred in law in giving a judgment in relation to the Plaintiff’s claims which fell within the exclusive jurisdiction of the Labour Tribunal[1]. THE PRESENT APPLICATION 23.On 15 January 2024, the Defendant took out a summons, supported by an affirmation of Lai Yu Leung (“Lai”) filed on the same date, seeking to strike out the Plaintiff’s Notice of Appeal, or alternatively, security for costs of the appeal. The Defendant contends that it is plain and obvious that all 13 grounds of appeal are “totally misconceived and without any merit, not capable of reasoned argument, without foundation, cannot possibly succeed and … lack bona fides”. Alternatively, if the Defendant is unsuccessful in its strike out application, the Defendant asks for security for costs of the appeal to be provided by the Plaintiff. 24.The Plaintiff opposes the Defendant’s application. The grounds of opposition are set out in his affirmation dated 4 March 2024 and Skeleton Argument lodged on 15 April 2024. We shall deal with the major grounds of opposition raised by the Plaintiff below. DISCUSSION (i) Applicable principles 25.The legal principles concerning the jurisdiction of the Court of Appeal to strike out a notice of appeal are well established, and have been summarised in Leung Chung Lan Lorraine v Hang Seng Bank Ltd [2019] HKCA 1408:
26.Where the proceedings are hopeless and without foundation in law, the court ought not to be slow to exercise the power to strike out to protect a party from being harassed and put to expenses by frivolous, vexatious or hopeless claims (see Hong Kong Civil Procedure 2024, Vol 1, §18/19/15). (ii) Overview 27.The various grounds of appeal advanced by the Plaintiff boil down to his contention that his employment by the Defendant, whether under the 1st Employment Agreement or the 2nd Employment Agreement, should continue until the completion of the relevant construction project, and any termination or non-renewal of the Plaintiff’s employment prior to the completion of the relevant construction project is wrongful. 28.In our view, it is beyond peradventure that the 1st Labour Tribunal Case, and thus any claims arising out of the 1st Employment Agreement, were fully and finally settled by the Settlement Agreement. We can see no basis for the Plaintiff to now seek to re-open the 1st Labour Tribunal Case after he has obtained leave from the Labour Tribunal to withdraw the 1st Labour Tribunal Case. 29.The Judge rightly focused on the terms of the 2nd Employment Agreement. The Judge’s finding that it is a fixed term contract which has come to an end by effluxion of time is plainly correct. None of the grounds of appeal advanced by the Plaintiff to challenge the Judge’s decision is reasonably arguable or has merit. Properly analysed, the Plaintiff’s grounds of appeal are mostly based on a misreading of the Judgment, or misunderstanding of the law. 30.In what follows, we shall first address the jurisdictional challenge raised by the Plaintiff, before turning to his grounds of appeal, followed by his grounds of opposition to the Defendant’s applications. (iii) Jurisdictional challenge 31.In his jurisdictional challenge, the Plaintiff contends that his claims against the Plaintiff are within the exclusive jurisdiction of the Labour Tribunal under s 7 of the Labour Tribunal Ordinance (Cap 25) and outside the jurisdiction of the High Court. This contention is unsustainable because the Presiding Officer was entitled, under s 10 of the Labour Tribunal Ordinance, to decline jurisdiction and transfer the Plaintiff’s claims to the Court of First Instance for determination. (iv) Grounds of appeal 32.The 13 grounds of appeal raised in the Notice of Appeal can broadly be grouped into the following six categories:
33.In respect of Ground 1 of the Notice of Appeal, the Plaintiff makes 2 main points. First, the Plaintiff complains that the Judge erred in allowing the Defendant to withdraw from calling Mr So as a witness to give evidence at the trial. According to the Plaintiff, Mr So is an important witness who made the Oral Agreement with the Plaintiff in an interview attended only by the two of them. The withdrawal of Mr So as a witness has led to the rejection of the Oral Agreement. In our view, the Judge was correct to take the view that it was primarily a matter for a party to decide whether to call any particular witness to give evidence, subject to the possibility of an adverse inference being drawn against the party for failing to call a witness in an appropriate case. In this case, it is plain from the Judgment that the Judge disbelieved the Plaintiff’s evidence and proceeded to determine the issue of the Oral Agreement with reference to, amongst other matters, the terms of the 1st Employment Agreement, which were clear and self-explanatory. The Judge took the view that Mr So was an unimportant witness[2]. We consider that it was open to the Judge to take that view. The Judge was also entitled to reject the Oral Agreement on the basis that it was inconsistent with the express terms of the 1st Employment Agreement[3]. 34.Second, the Plaintiff complains that the Judge failed to take into account (i) the express terms of an interrelated employment contract with GEG for automatic extension of the term of the Plaintiff’s employment; (ii) the stringent employment protection under the law of Macau in relation to the termination of oversea employees; (iii) the express reference to the completion of a construction project in Clauses 2 and 3 of the 1st Employment Agreement; and (iv) the usual industry practice that employment contracts in relation to construction projects do not have a fixed term because the completion date of a construction project is unfixed and may vary according to the circumstances (in reliance upon Yeung Wai Hon and Others v Ho & Partners Architects Engineers & Development Consultants Ltd, HCLA 6/2002, (28 May 2022)). As rightly held by the Judge, these matters are irrelevant and/or inadmissible[4]. The Plaintiff’s reliance on Yeung Wai Hon is misplaced. Whether the Plaintiff’s 1st Employment Agreement with the Defendant is a fixed term contract depends on the actual terms of the agreement. There cannot be a general industry practice on such an issue. 35.In respect of Grounds 2, 3 and 7, the Plaintiff has either misread the Judgment in relation to the Judge’s interpretation of the relevant terms of the 2nd Employment Agreement, or misread the relevant terms of the 2nd Employment Agreement. It was not the Judge’s holding at §45 of the Judgment that the 2nd Employment Agreement contained the express wordings “end date” or “expiry date”. The Judge’s holding is that the date of “27 July 2020” was expressly stated in the 2nd Employment Agreement to be the date on which the Plaintiff’s employment would come to an end (ie an “end date” of the Plaintiff’s employment.). On the facts of this case and upon a fair reading of the 2nd Employment Agreement, Clauses 1 and 2 thereof simply cannot be construed or interpreted to mean that the Plaintiff’s employment with the Defendant should continue or be renewed until the completion of the Office Development. 36.In respect of Grounds 4 and 12, the Plaintiff appears to argue that the Defendant was prohibited by s 72B of the Employment Ordinance from issuing the Termination Notice dated 2 June 2020 and terminating his employment on 27 July 2020 because the settlement of the 1st Labour Tribunal Case occurred only 11 months ago in August 2019. On the facts of this case, it is clear that the 2nd Employment came to an end by effluxion of time, and not because of any of the reasons referred to in s 72B(1) of the Employment Ordinance. That section is irrelevant to, and has no bearing on, the present case. 37.In respect of Grounds 5 and 6, it is well established that a judge is not required to consider and deal with every single issue raised by a party in his judgment. He needs only to deal with the relevant and substantial issues, and explain why he has come to his decision. Here, the Judge expressly stated at §§33 and 34 of the Judgment that he had considered all the matters raised and authorities cited by the Plaintiff in his written final submissions and reply submissions. Looking at the reasons given by the Judge in the Judgment, we are satisfied that he has sufficiently dealt with all major and relevant issues in the case. 38.In respect of Grounds 8 to 10 and 13, the Plaintiff argues that:
39.These arguments have no foundation in law and/or fact:
40.In respect of Ground 11, the end-of-contract gratuity payment is not a right, benefit or protection conferred upon the Plaintiff as an employee under the Employment Ordinance. The deduction of HK$164,450 from the gratuity payment is not caught by s 70 of the Employment Ordinance, which has no relevant application to the present case. The contention that the deduction of HK$164,450 is not enforceable because it is not supported by any consideration is unarguable, because the Defendant’s right to make the deduction is part of the contract contained in the 2nd Employment Agreement. (v) Grounds of opposition 41.We now turn briefly to the main grounds advanced by the Plaintiff to oppose the Defendant’s strike out application. None of them has merit:
42.In all, it is plain and obvious that the Plaintiff’s grounds of appeal are doomed to fail, and his appeal is frivolous, vexatious and/or an abuse of the court’s process. We see no reason why the Notice of Appeal should not be struck out in the present case. 43.In view of the above conclusion, it is not necessary for us to consider the Defendant’s alternative application for security for costs. DISPOSITION 44.The Plaintiff’s Notice of Appeal dated 20 December 2023 is struck out with costs to the Defendant, to be summarily assessed. We decline to order the Defendant’s costs to be assessed on an indemnity basis. 45.The Plaintiff shall have leave to file and serve a statement of objections (limited to 2 pages) to the Defendant’s Statement of Costs for Summary Assessment dated 5 April 2024 within 14 days from the date of this judgment.
The Plaintiff, acting in person Mr But Sun Wai, instructed by Withers, for the Defendant | ||||||||||||||||||||
Cases cited in this judgment
Further hearings and rulings under CACV 427/2023