Imperial Pacific International (Cnmi), Llc v. Chan Chi Hung
Read the full judgment text of HCA 75/2018 on BabelCite. This High Court CFI judgment was delivered on 11 April 2025.
1. At the Pre-trial Review (“PTR”) on Friday, 21 March 2025 for this action, of which the trial is scheduled to commence on 16 June 2025 (with 8 days reserved), the plaintiff (“P”) applied for the evidence of its main witness Mr Ji Xiaobo (“Ji”) to be given via video conference facilities (“VCF”) at the trial. P made the application by way of summons issued on 13 March 2025, exactly 8 days before the PTR and returnable at the PTR hearing (without any prior notice to the defendant (“D”) or the Co
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HCA 75/2018 [2025] HKCFI 1512 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE HIGH COURT ACTION NO. 75 OF 2018 ____________
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_______________ D E C I S I O N _______________ INTRODUCTION 1.At the Pre-trial Review (“PTR”) on Friday, 21 March 2025 for this action, of which the trial is scheduled to commence on 16 June 2025 (with 8 days reserved), the plaintiff (“P”) applied for the evidence of its main witness Mr Ji Xiaobo (“Ji”) to be given via video conference facilities (“VCF”) at the trial. P made the application by way of summons issued on 13 March 2025, exactly 8 days before the PTR and returnable at the PTR hearing (without any prior notice to the defendant (“D”) or the Court) (“the VCF Summons”). 2.The first thing I noticed about the VCF Summons is the fact that P has failed to observe the requirements under Practice Direction 5.4 (“PD 5.4”) in that it had only lodged with the Court the hearing bundle at 5:00 pm on Tuesday, 18 March 2025 (“the Hearing Bundle”) and the skeleton argument at 10:10 am on Wednesday, 19 March 2025 (“P’s Submissions”). They were both lodged less than 72 hours required under §11 of PD 5.4. There was no explanation from P at the time when lodging those documents of why they were late. 3.As a result, it caused D not able to lodge his skeleton submission in reply to the grounds relied on by P for the application until 4:50 pm on Thursday, 20 March 2025 (“D’s Reply Submissions”), ie the day before the PTR itself. Having said that, D’s counsel had, in order to comply with the requirements under §12 of PD 5.4, lodged with the Court his skeleton argument and list of authorities on Wednesday, 19 March 2025 at around 10:20 am (“D’s Submissions”), trying his best to anticipate P’s arguments “in the blind” as it were. 4.Due to P’s late lodging of the Hearing Bundle and P’s Submissions, it did not give the Court sufficient time to read the hearing bundle as well as the parties’ submissions in time. 5.At the beginning of the PTR hearing on 21 March 2025, the Court asked for explanations from P as to why (i) the Hearing Bundle and P’s Submissions were not lodged in time in accordance with PD 5.4; and (ii) why the VCF Summons was taken out so late in the proceedings. 6.Despite his best efforts, P’s counsel Mr Ronald Pang was not able to offer any satisfactory explanations to the Court on both matters. 7.In the circumstances, the Court had no alternative but to order a short adjournment in order to allow it to have sufficient time to read all the documents and to digest the respective counsel’s written submissions including the many authorities relied on by them. The VCF Summons was therefore adjourned to 24 March 2025 for substantive argument and the PTR was adjourned to 29 April 2025 as a result. 8.Having heard counsel’s submissions on costs, I ordered all costs thrown away as a result of the adjournment, including the adjournment of the PTR, to be borne by P on an indemnity basis. The costs is summarily assessed at HK$90,000 and to be paid by P forthwith. BACKGROUND 9.For the background of this case, the parties are referred to §§2-4 of the Reasons for Decision handed down by this Court today in relation to D’s application to file and serve two witness statements and one supplemental list of documents which was heard and decided by the Court on 18 February 2025. DISCUSSION 10.In support of the VCF Summons, P has filed the following affirmations:-
11.In opposition, D has filed his 9th affirmation on 17 March 2025 (“D’s Aff”) where D raises the following grounds in opposition:-
12.As for the reasons for the VCF Summons, Chi tried to explain in his affirmation that, in preparation of the trial (and in particular the PTR hearing scheduled on 21 March 2025), Chi started to contact P’s witnesses to remind them to come to Hong Kong to give evidence. Upon contacting Ji, he was informed by Ji that, while agreeable to give evidence, he refused to come to Hong Kong due to personal circumstances: (see §§7-8 of Chi Aff). 13.There is no dispute that a critical factual dispute of trial will be focused on the practices of the Casino with regards to its provision and lending of credit facilities in the form of Chips and the actual authority that Ji had with the Casino and/or P. 14.P accepts that Ji is a crucial witness in the trial for both P and D’s respective case, considering the personal averment made by D against Ji that he had caused the Chips to be provided for free to D. 15.Chi in his affirmation confirmed that Ji had told him that he had left Hong Kong on or about 23 December 2021 (who now lives in Japan) and had never come back to Hong Kong since then: (see §9(c) of Chi Aff). Ji has however made it clear that he will not come to Hong Kong for his fear of prosecution of alleged criminal activity against him in the Mainland. P therefore took out the VCF Summons for Ji to give evidence remotely. 16.Ji in his affirmation tried very hard to distance himself from P by making the following self-serving assertions:-
17.As to the reason why Ji has refused to come to Hong Kong, the same is allegedly a matter of his personal circumstances. He states that fears that he may be prosecuted in the Mainland for alleged serious crimes unrelated to the present proceedings against D: (see Ji Aff §12). 18.Ji also states such fears stemmed from the fact that he has been accused of masterminding a criminal organisation of 15 people involving, inter alia, violence, intimidation, and collection of illegal debts from gambling: (see §§9-11 of Ji Aff). 19.In support of his alleged fears, Ji has exhibited a public announcement from the Intermediate People’s Court in Beijing on 24 November 2023 which contains a serious allegation but a thinly veiled reference to Ji (“the Announcement”):
20.The defendant referred to in the Announcement Cui Limei (崔麗梅), who was arrested and sentenced for a term of imprisonment, is allegedly Ji’s aunt: (see §9 of Chi Aff). As a result, Ji states that he left Hong Kong since December 2021 for fear of being criminally investigated/prosecuted by the Mainland authorities. He has no intention of coming back to Hong Kong: (see §11 of Ji Aff). 21.Despite having no obligation to do so, as he alleges that he has no interest in P whether in the form of shareholding or otherwise, Ji has agreed to give evidence for P. However, Ji flatly refuses to come to Hong Kong to give evidence. Ji claims that he has no obligation to attend Court to give evidence for P in these proceedings as he has no connection with P whatsoever. P similarly cannot compel Ji to give evidence for P in person in Hong Kong. Applicable Legal Principles P’s submissions on law 22.Mr Pang in P’s Submissions heavily relied on the relatively old case of Sun Legend Investments Ltd v Ho Yuk Wah [2008] 4 HKLRD 239, a decision of Chu J (as the VP then was). 23.In essence, in that case Chu J held that whether granting a VCF application is a balancing exercise by with concepts of fairness and justice at the forefront. The learned Judge at §§2, 3 and 12 in Sun Legend observed that:
24.Polanski v Condé Nast Publications Ltd [2005] 1 WLR 637, a House of Lords judgment was considered by the Court in Sun Legend to be a relevant and highly persuasive authority in such applications: (See §11 of Sun Legend), and it was held that VCF evidence must now be considered equally efficient and fair as live evidence in Court:(See §10 of Sun Legend). 25.Mr Pang submits that the factual matrix in Polanski is eerily similar to the present case as the claimant in Polanski had held the same fear as Ji, in that he feared that he would be extradited to the US and incarcerated if he attended trial in the UK. After a lengthy judgment, the House of Lords (by a majority of 3 to 2) acceded to the application and allowed the claimant to give evidence remotely. 26.Mr Pang further submits that this should be distinguished from the other more recent Hong Kong cases considering VCF applications on grounds of illness of a witness, where travelling to Hong Kong falls short of being “life-threatening” (Ang Jimmy Tjun Min v Khoo Chun Kim [2023] HKCFI 3047) or a witness’s refusal to have their business commitments interfered (Re Nobility School Ltd [2020] HKCFI 891 or Mahajan v HCL Technologies (Hong Kong) Ltd [2010] 5 HKLRD 119). 27.Mr Pang finally submits that comments from the House of Lords in Polanski regarding the necessity of granting a VCF order in the context of the fugitive witness are regardless relevant and helpful:
D’s submissions on law 28.Mr Valentine Yim, counsel for D, in his submissions has in my view rightly pointed out that P’s counsel has only cited the old cases in its favour without referring to the Court the more recent and relevant authorities on VCF applications. I agree with Mr Yim that P appears to have misunderstood the preponderance of such authorities. In my view, the pendulum has clearly swung and the older cases of Sun Legend and Polanski must be seen in the light of the subsequent and more updated authorities. 29.The starting point to see how the Court would approach VCF applications made for the sake of avoiding criminal investigation is the case of HKCT Trading Ltd v Li Luen Ping [2001] 3 HKLRD 504, where Yeung J (as he then was) made the following observations:-
30.The subsequent Court of Appeal judgment, Re Chow Kam Fai, ex p Rambas Marketing Co LLC [2004] 2 HKLRD 260 at §§16-20 & §25 per Rogers VP, further upheld the high threshold of departing from the norm that a witness should give viva voce evidence in court, and illustrated that even for a non-Hong Kong citizen (a Macanese in that case), if a person’s reason for not coming to Hong Kong to give evidence arose from a self-inflicted jeopardy, this would put the VCF application in a very dim light:
31.I agree with Mr Yim that, since the House of Lords decision in Polanski, which was made after the decision in Re Chow Kam Fai, there seemed to be a change of legal landscape for the use of VCF in our Courts. 32.Rogers VP in the above case has firmly steered the line of authorities away from Polanski or Sun Legend and reaffirmed the applicability of Re Chow Kam Fai in his later decision in Mahajan v HCL Technologies (Hong Kong) Ltd where at §9 and §§15 &16 he stated the following:
33.Most significantly, in Re Nobility School Ltd [2020] HKCFI 891 (unrep., 20 May 2020), Anthony Chan J, after referring to the judgments of Sun Legend, Re James Henry Ting [2013] HKCFI 1569, Re Chow Kam Fai, Mahajan and Daimler AG v Leiduck (No2) [2013] 2 HKLRD 822, summarized at §9 the applicable legal principles on VCF applications :
34.In my view, the above summary by Anthony Chan J in Re Nobility School Ltd must be considered as the most accurate and update summary of the law on the approach of VCF applications by the Courts in Hong Kong. I would respectfully adopt the same approach when deciding the VCF Summons in this case. 35.In relation to the first four points in Re Nobility School Ltd, they are not new as the judge at the first instance in Re Chow Kam Fai [2004] 1 HKLRD 161, DHCJ To had already laid emphasis on them in his judgment:-
36.It is important to note that the first instance judgment in Re Chow Kam Fai was approved by the Court of Appeal in Re Chow Kam Fai, sub nom. 37.As pointed out by Mr Yim, the importance for a witness to be examined under the solemnity of the court has been consistently applied and approved by the Courts in Hong Kong:-
38.I cannot agree more with the learned judges in the above cases of the importance for a witness to give live evidence under the solemn atmosphere of a court room. FINDINGS OF THE COURT 39.First, I reject Mr Pang’s submission (by relying on a passage of Chu J in Sun Legend) that the threshold of a valid use of VCF is not a high one. In my view, the better approach is that adopted by Anthony Chan J in Re Nobility School Ltd at §10 when the learned judge rejected the rigid analysis of the proper threshold to be adopted in considering the application and instead suggested that the exercise should be a holistic one. 40.Thus, in my view, it is for P, who as the applicant seeking its witness to give evidence via VCF, to provide sound reason(s) to justify the departure from the accepted principles that the proceedings should be conducted in the solemnity of the court. 41.In justifying the application of VCF, Mr Pang submits that (i) Ji is a fugitive from justice; (ii) Ji being a fugitive from justice is a good and valid reason for the Court to make a VCF order; (iii) the absence of Ji will undeniably cause disadvantage to P’s case with regards to critical dispute of fact; and (iv) no good reason forwarded by D that they will be prejudiced by the use of VCF by Ji in giving his evidence. 42.I shall deal with each of the above four grounds relied on by P and explain why none of them in my view could justify the departure from the established principles laid down in Re Nobility School Ltd. (i) & (ii) Whether Ji is a fugitive from justice and whether it is good enough for the Court to make a VCF order 43.In my view, (i) and (ii) above can be looked at together. 44.I do not think the evidence produced by Ji or P is anywhere close to show that (i) he is a fugitive from justice; and (ii) his purported fears of being arrested or prosecuted are justified. 45.First, the Announcement only referred to a “Ji XX” (紀某某). It makes no direct reference to Ji himself. Thus, the claim that he is the subject of a criminal investigation remains an unsubstantiated and self-inflicted claim. 46.Second, even if somehow Ji is able to show that the “Ji XX” (紀某某) mentioned in the Announcement was referring to him, I do not see how under the principle of “One Country Two Systems” he would be arrested and sent back to the Mainland if he were to come to Hong Kong to give evidence. Similarly, his fear that he would be under political persecution by the Mainland authorities if he ever return to Hong Kong (as deposed to by him in §11 of Ji Aff) is also unfounded. There is simply no cogent and credible evidence to support such wild and uncorroborated claim. 47.Third, even if somehow P is able to show that Ji is a fugitive from justice (which I find he is not), his situation can clearly be distinguished from Polanski in that the applicant in that case was fighting for his own civil right (ie his own reputation in a defamation case). Similarly, in Sun Legend, Daimler and Mallorca, the applicants are also claiming their civil rights in those applications. Ji on the other hand has disavowed to have any interest in the outcome of P’s claim. Thus, in my view, the public interest in protecting “fugitive from justice” as in Polanski does not even arise in this case. (iii) The disadvantage to P’s case in the absence of Ji in giving evidence 48.While it is an indisputable fact that Ji’s evidence is critical to P’s case, in my judgment, it only has itself to blame for not securing Ji to come to Court to give evidence at the trial. 49.This case was set down for trial over a year ago according to the Order of Master Kot dated 19 March 2024. Ji himself has left Hong Kong since December 2021 and has specifically mentioned that he has no intention to return to Hong Kong. Given the fact that Madam Cui Lijie who had effective control of P[1] is the mother of Ji, I cannot imagine that Ji would not know about the need for him to testify at the trial since the early days of these proceedings. It is therefore simply incredible for Chi of P to say that he had only looked for Ji to ask him to give evidence at the trial recently in view of the imminent PTR and trial dates. 50.Since Ji is a witness called by P to give evidence on its behalf, it is up to it to secure his attendance in Court to give evidence. Any disadvantage is therefore in my view self-induced and would draw no sympathy from the Court. 51.In this respect, I echo with the comments made by Stone J in Asia-Pac Infrastructure Development Ltd v Ing Yim Leung Alexander [2011] 1 HKLRD 587 at §54:
(iv) No prejudice caused to D by the use of VCF by Ji in giving his evidence 52.I do not agree with P’s submission that D will not be prejudiced by the use of VCF by Ji in giving his evidence. 53.The prejudice to D in my view is obvious as has been succinctly put by DHCJ H. Au-Yeung (as he then was) in Esports Business Development Ltd at §§24-26:-
CONCLUSION 54.In the aforestated premises, I would dismiss the VCF Summons and order P to pay the costs of the application with certificate for one counsel, such costs to be taxed if not agreed.
Mr Ronald Pang, instructed by KCL & Partners, for the plaintiff Mr Valentine Yim and Mr Roger So, instructed by Hau, Lau, Li &Yeung, for the defendant | ||||||||||||||||||||
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