Yth v. Zl and Others
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FCMC 9123 / 2024 [2026] HKFC 185 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION MATRIMONIAL CAUSES NUMBER 9123 OF 2024 ----------------------------
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______________________________________ DECISION ______________________________________ 1.This is the Petitioner Husband’s application to seek leave to file and serve his 2nd List of Documents and to disclose the documents listed at items 93 to 103 of Part I of Schedule I thereto, namely the extracts of iMessage and WhatsApp exchanges between the Husband and the Wife between 2011 and 2022 (“the Messages”). The 1st Respondent Wife and the 2nd and 3rd Respondents raise objection to the application. Background of the case 2.The Husband and the Wife were respectively born in 1972 and 1979. At the date of the trial on preliminary issues commencing on 26 October 2026, they are respectively aged 54 and 47. 3.Both the Husband and the Wife are accountants by profession. They got married in Hong Kong on 23 May 2010. During the marriage, there were two children of the family. The elder daughter was born on 13 February 2011. The younger son, born on 28 February 2018, sadly passed away on 8 August 2023. 4.On 5 February 2024, the Husband petitioned for divorce on the ground of the Respondent’s unreasonable behaviour under FCMC 1236/2024. The Wife opposed the petition and filed an Answer and Cross Petition. On 13 May 2024, the Court allowed the Husband to file a fresh Petition based on one-year separation with consent. The Petition under the present proceeding was filed on 23 August 2024. Procedural history of the Preliminary Issues 5.Pursuant to the Order of Master TK Lam dated 27 August 2024, the Court granted leave for the Wife’s Mother and the Father to be joined as the 2nd and the 3rd Respondents respectively (collectively called “the Parents”) for the purpose of determining the beneficial ownership of disputed properties (“the Preliminary Issues”). Directions on the filing of pleadings and, exchange of lists of documents and witness statements were also given. All interlocutory applications should be made within 14 days after exchange of witness statements. 6.The Parents’ Points of Claim was filed on 4 October 2024 (which was subsequently amended on 10 February 2025). The Wife’s Points of Defence were filed on 17 February 2025. The Husband filed his Points of Defence and Counterclaim on 17 February 2025 (which was subsequently amended on 24 October 2025). The Parents’ Points of Reply and Defence to Counterclaim was filed on 17 March 2025 (which was subsequently amended on 31 October 2025). 7.In respect of the evidence, the parties’ Lists of Documents were filed on 28 April 2025, while witness statements were exchanged in June 2025. 8.On 27 March 2026, upon the parties’ confirmation that there be no outstanding interlocutory application to make, the Preliminary Issues were set down for trial with 13 days reserved. The properties involved 9.There are a number of landed properties involved in the Preliminary Issues. For the purpose of the Husband’s application, the following are relevant. 1. 5E and 5F Po On Mansion 10.5E Po On Mansion was purchased on 4 July 2011 at the price of HK$6,750,000 under the names of the Husband and Wife, while 5F Po On Mansion was purchased under the sole name of the Wife on 4 August 2011 at the price of HK$6,580,000. 11.The Parents’ case is that the purchase of 5E Po On Mansion was funded by the Parents at HK$1,200,000 whilst a sum of HK$1,800,000 wase obtained from the mortgage of Choi Tien Mansion. The Husband contributed HK$375,000. The Wife held the property on trust for the Parents. The beneficial ownerships between the Parents and the Husband would be reflected by the proportion of the financial contribution to the purchase. 12.In respect of 5F Po On Mansion, down payment of HK$3,080,000 was funded by the Parents, while the mortgage of HK$3,500,000 was taken out by the Wife who paid for the monthly mortgage repayment as rental and contribution to the parents. The Wife held the property on behalf of the Parents and the Parents should be the true beneficial owners. 13.The Husband’s case is that:
14.In 2022, the Husband assigned his 50% ownership of 5E Po On Mansion to the Wife at a consideration of HK$10,000,000, and he then proceeded to purchase Yiu Sing Mansion in his own name. 2. Yiu Sing Mansion 15.Yiu Sing Mansion was purchased on 16 May 2022 at the price of HK$11,880,000 under the Husband’s sole name. 16.The Parent’s case is that they wished to purchase Yiu Sing Mansion property in around March 2022, but as they were not permanent residents in Hong Kong, they would be subject to Buyer’s Stamp Duty for the purchase. At the time, the Husband was only holding 5E Po On Mansion. He would have a quota for use when his registered ownership was transferred to the Wife. Yiu Sing Mansion was purchased at the price of HK$11,880,000 which was wholly funded by the parents. Therefore, it is the Parents’ position that they should have the beneficial ownership of Yiu Sing Mansion and the Husband is merely holding the property on their behalf. 17.The Husband denies the allegation. The Husband contends that he and the Wife wished to acquire an investment property, and in order to make use of the tax benefit available for first time home buyers, he assigned his share of 5E Po On Mansion to the Wife, and then he purchased Yiu Sing Mansion in his own name. 3. Choi Tien Mansion 18.Choi Tien Mansion property was purchased on 28 September 2009 in the names of the Husband and the Wife at the price of HK$7,050,000. 19.It is the Parents’ position that the Parents funded a sum of HK$4,365,000 towards the down payment while the Husband funded HK$485,000, and the proportion of beneficial ownership between the Parents and the Husband would be based on the financial contribution made to the acquisition of Choi Tien Mansion, i.e. the Parents have contributed approximately 90% of the downpayment while the Husband 10%. 20.The Husband took out a mortgage of HK$2,200,000, and he was the one to deal with the mortgage repayment and the stamp duty of HK$264,685. The Husband and Wife moved to Choi Tien Mansion for a brief period. After the birth of the daughter, they moved to another property in Taikoo Shing. Choi Tien Mansion was let out for rental income which would cover monthly mortgage repayments and expenses. 21.Choi Tien Mansion was sold on 4 September 2020 for HK$14,538,000. The Parents’ case is that after deducting the expenses, around 10% of the net sale proceeds, amounting to HK$1,500,000 was transferred to the Husband. 22.The Husband denies that the property was subject to any trust arrangement. He alleges that the common understanding was that he would contribute about HK$3.5 million (approximately 44% of the purchase price) and the Wife would contribute HK$4.5 million (about 56% of the purchase price) and the beneficial ownership mirrors their respective financial contribution. The Husband argues that he should be entitled to around HK$3,632,000. The fact that he only received HK$1.5 million at the time of the sale was because he thought the Wife was in need of extra cash to repay her mortgages associated with the Vancouver Property. 4. Vancouver Property 23.The Parents have moved to Canada since 1992 and are now Canadian residents. In the year 2019, the Parents purchased the Vancouver Property at the price of approximately HK$18,000,000 under the Mother’s sole name. The purchase was funded by the net proceed of sale of Chi Sing Mansion and the re-financing of Choi Tien mansion as well as 5E and 5F Po On Mansion. The Parents said that the Husband has no interest at all in the Vancouver Property. 24.The Husband argues that the Vancouver Property was held by the Mother on trust for the Husband and the Wife. The property was registered in the Mother’s name because, the Husband alleges, the Husband and the Wife were concerned about the risk of revoking the Wife’s non-resident status for income tax purposes in Canada. The Preliminary Issues 25.By the Points of Claim of the Parents, the Parents ask for a declaration that they are the beneficial owners of 5F Po On Mansion, Yiu Sing Mansion, and Vancouver Property. 26.In his Amended Defence and Counterclaim, the Husband counterclaims for a declaration inter alia that the Mother holds the Vancouver Property on trust for the Husband and the Wife, and that the Wife holds the 5F Po On Mansion for the Husband and the Wife. The present application 27.The Husband wishes to seek leave to disclose the Messages which are extracts of iMessage and WhatsApp exchanges between the Husband and the Wife. In his Written Submissions, Counsel for the Husband, Mr Giles Surman together with Mr Abel Lam, summarize the relevant Messages as follows:
28.In the written submissions in support of the application, the Husband clarifies that:
29.The Husband submits that he was able to recover and locate these WhatsApp and iMessages conversations in the course of preparing his affirmation in opposition to the Father’s application to give evidence via video link, of which the Summons was taken out on 22 July 2026. The Husband understands that discovery is an ongoing obligation and he is required to disclose these documents. The Husband apologized for the lateness and fully accepted that his present application was late. The Respondents’ objections 30.The Wife is represented by Mr Eugene Yim, SC, and Mr Isaac Ng of counsel. Their objections can be summarized as follows:
31.The Parents, represented by Mr Eric Leung of counsel, also oppose the application on the following grounds:
Legal principles 32.As to the legal principles on the late application for leave to file supplemental list of documents, Mimmie Chan J has this to say in Converge Design and Construction Company Limited v Mount Kelly International Limited [2020] HKCFI 2433 at §2:
33.In respect of the weight and probative value of the documents to be disclosed in late application, Mimmie Chan J. held the following at §9:
34.In the case of Chu Hsiao Chiu Alias Chu Tony Chu Hsiao Chiu Alias Chu Hsiao Chiu, Deceased v Ma Jinrui and Ma Ming [2020] HKCFI 942 at §§18-21, Coleman J. (as he then was) has this to say:
Discussions 1. Delay 35.The Husband fully accepts in the written submissions that his present application is late and he expresses his apology for the lateness. 36.The Wife and the Parents complain that there is inexcusable delay on the part of the Husband in taking out the application. I respectfully agree. First, the Husband filed the Point of Defence and Counterclaim on 17 February 2025. Whilst it was subsequently amended on 24 October 2025, it must be clear to the Husband when the Point of Defence and Counterclaim was first filed that the crux of the dispute rests upon the parties’ common intentions in respect of the ownership of the disputed assets and the determination of the Preliminary Issues turns largely upon the parties’ recollection and the credibility of the same. I fail to see why the Husband did not retrieve, nor did he attempt to retrieve the Messages to support his case back in February 2025. At least, there is no evidence from the Husband to explain his failure to do so when the present application is made. 37.The Husband filed the List of Documents on 28 April 2025, and witness statements were exchanged in June 2025. Likewise, I fail to understand why the Husband did not attempt to retrieve the Messages at the time of preparation of the list of documents if he considered the Messages should be disclosed and relied upon. The witness statements made no reference to those Messages at all. 38.As to the explanation for the delay, the Husband simply said in his supporting affirmation that he was able to recover and locate the Messages in the course of preparing his affirmation in opposition to the Father’s application to give evidence via video link. With respect, the explanation is grossly inadequate. §34 of the judgment in Liu Chen v Chan Poon Wing and Another, HCPI 779/2006 (unrep., 7 October 2009) set out the requirement for information in support of discovery at the eleventh hour as follows:
39.In the present case, the Messages were made from 2011 to 2022. They should have been available at the time when the list of documents was filed on 28 April 2025. No explanation was offered by the Husband as to why the Messages could not have been retrieved at the time when the List of Documents was prepared. As pointed out by the Wife, the Husband provides no explanation as to why he did not conduct a search over the last two years. At the time when the Preliminary Issues were set down for trial, counsel for the Husband (Mr Abel Lam) confirmed with the Court that there was no outstanding interlocutory application. Likewise, the Husband provided no explanation as to why he could make such a confirmation through counsel when, regrettably, an application for disclosure of the Messages is now made at the eleventh hour. 40.The Husband attempts to argue that the present application is required not because he has no right to give further discovery bearing in mind that his obligation to give discovery is a continuing one, but because of the Order dated 27 March 2026 providing that no further affirmations or documents shall be relied upon by the parties without leave of the Court. It seems the Husband is arguing that he should be entitled to rely on the documents referred to in the Summons but for the Order. With respect, this is not correct. As decided by Master M Ng (as she then was) in Liu Chen v Chan Poon Wing and Another, supra, at §24:
41.Based on the above analysis, I am not satisfied that the Husband has provided sufficient explanation for the delay. The unacceptable lateness in the application was apparent from the procedural history and is inexcusable. 2. Weight and probative value of the Messages 42.The Husband avers that there can be no dispute as to provenance and makers of the Messages which were exchanges between the Husband and the Wife themselves. The contents of the Messages are obviously relevant. 43.With respect, the mere fact that the Messages were made between the Husband and the Wife during the relevant period does not necessarily mean that they are relevant to the issues in dispute in the present proceeding. In this regard, I agree with the Wife that the Husband failed to address at all the relevance and probative value of the Messages:
44.The Husband replies that no supplemental witness statement is actually needed to explain their relevance, they are self-explanatory on any view. With respect, I do not agree. I note that the extracts of the Messages to be relied upon by the Husband are fragmented, and the sentences in the Messages are sometimes incomplete. Without detailed explanations by the Husband, whether by affirmation or witness statement, to set out the background and to put the messages in context, one is unable to see how the Messages are relevant and probative to the present proceeding. In his Reply Submissions, the Husband annexed a Schedule purporting to identify, for each set of items 93 to 103, the period, the pages, the asset or transaction concerned, and the paragraphs of Amended Defence and Counterclaim to which it relates. In my view, that does not assist the Husband as the contents of the schedule are not specific enough for the particulars as set out in the preceding paragraph. Balanced all the considerations, I fail to see how the Messages will assist the court in securing “the just resolution of disputes in accordance with the substantive rights of the parties” even if application is granted. 3. Prejudice to the other parties 45.Both the Wife and the Parents objected by saying that prejudice would be caused to them if the application is allowed. 46.The Wife submits that she has difficulties to retrieve all the messages made between the Husband and the Wife in order to check whether the Husband had not cherry-picked messages to his favour and adduce further messages to provide the full context and complete picture of the parties’ communication. 47.Further, the Wife complains that as the Messages do not speak for themselves and the Husband has provided very limited explanation as to how he intended to use the Messages, the Wife is left second-guessing as to how the Husband will deploy the newly discovered documents in establishing his case. The Wife will only be able to understand the use of the Messages during trial when the Husband is giving evidence, or worse still, when she is being cross-examined. 48.The Husband reminds the Court that the primary aim is to secure the just resolution of disputes in accordance with the substantive rights of the parties. As I see it, in carrying out the balancing exercise, I need to strike a balance between timely progress of cases and adherence to procedural timetables on the one hand and proper adjudication of cases on the merits on the other hand in order to achieve fairness and justice for the parties before the court. Given that the trial will commence on 26 October 2026, and the intended disclosure of the Messages consisted of more than 150 pages of messages spanning from April 2011 to December 2022, it would be unfair for the Wife to spend considerable time in dealing with the Messages, instead of preparing for the imminent trial. If the application were allowed, the Wife and the Parents would be required to file supplemental witness statements in response for fairness sake, but it is unlikely for them to prepare for the same before the commencement of the trial which will take place on 26 October 2026, and milestone date is likely to be compromised. Conclusion 49.In view of the above analysis, the application must be dismissed. 50.There is no reason why costs should not follow the event. I will grant an order nisi that costs of the application be paid by the Husband to the Wife and the Parents with certificate for one counsel. 51.Costs are to be assessed by summary assessment on paper. If no variation application is made within the 14 day period, the Wife and the Parents shall lodge and serve statement of costs (no more than 2 pages) within 7 days thereafter, and the Husband shall lodge and serve list of objection (no more than 2 pages) within 7 days thereafter.
Mr. Giles Surman and Mr. Abel Lam instructed by Lau & Co, Solicitors for the Petitioner Mr. Eugene Yim S.C. and Mr. Isaac Ng instructed by Withers for the 1st Respondent Mr. Eric Leung instructed by Tonys Lawyers for the 2nd and 3rd Respondents | ||||||||||||||||||||||||||||||||
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