Read the full judgment text of HCA 005966/1990 on BabelCite. This High Court CFI judgment was delivered on 6 June 1991 before Hon. Yang, C.J..
Civil practice – indorsement of claim – statement of claim pleading a different cause of action – Ord. 15, r. 18(2) – O.18 r.15(2) – abuse of process of the Court – what constitutes – damages – claim based on obligation to pay legal costs – not damage recognised by law – minority shareholder of publishing and investment holding company – Facility Letter from Arbus – redemption of mortgaged shares – Tabor loan – worldwide Mareva Injunction – Ada Action – Interlocutory Injunction obtained ex parte on the morning of hearing – undertaking as to damages – minority shareholder of D1 Jademan (Holdings) Ltd and D2 Ada Ltd – three grounds of appeal – whether claim against D1 and D2 can be converted from abuse committed against D1 to abuse committed by D1 – whether pleadings disclose abuse of process – whether legal costs constitute recoverable damage – predominant purpose test under Grainger v Hill and Metall & Rohstoff v Donaldson – no ulterior purpose pleaded beyond the Ada Action's ostensible subject matter – Quartz Hill principle that obligation to pay legal costs is not damage – appeal by D1 and D2 allowed – Amended Indorsement of Claim and Amended Statement of Claim struck out as disclosing no cause of action for abuse of process – additional claim for unlawful interference also struck out – Master's order deleting words in para. 21 set aside as fundamentally altering cause of action – costs of the Master's proceedings, the whole action, and the appeal to D1 and D2.
Legal issues: Conversion of abuse of process claim from wrong against D1 to wrong by D1 · Whether the pleadings disclose an abuse of process · Whether legal costs incurred can constitute recoverable damage
Outcome: Appeal by D1 and D2 allowed; Amended Indorsement of Claim and Amended Statement of Claim struck out as showing no cause of action based on abuse of process; consequential claim for unlawful interference also struck out; Master's order deleting words in para. 21 set aside; costs to D1 and D2.