Liu Ming Sung v. Liu Lee Yuk Ching and Another

Read the full judgment text of FCMC 2777/1981 on BabelCite. This Family Court judgment was delivered on 28 July 1982 before H. H. Judge Caird.

Divorce Jurisdiction – Stay of Proceedings – Contempt of Court – Costs – Undertakings – Petitioner failed to comply with Full Bench order to formulate proprietary claim and pay taxed costs – Stay granted except for custody and access applications – Respondent discharged from undertaking due to delay caused by Petitioner – Obiter view on District Court jurisdiction regarding proprietary claims.

Legal issues: Stay of proceedings due to non-compliance with Full Bench order · Stay of proceedings due to non-payment of costs · Discharge of Respondent's undertaking

Outcome: Stay of proceedings granted (except custody/access); Respondent discharged from undertaking

Cited by 1 case

Case No.FCMC 2777/1981[1983] 2 HKC 412
Court
Family Court
Date28 Jul 1982
JudgeH. H. Judge Caird
Case Document
100%Judiciary

FCMC002777/1981

VDJ 2777/81

Applications in Divorce Jurisdiction for (1) stay of Proceedings (2) discharged of wife's undertakings.

Held: Order staying all proceedings excepting custody and access applications should issue on basis:

(a) Petitioner has not conformed to an order of the Full Bench of the High Court to properly formulate his proprietary claim in the Victoria District Court.

(b) Petitioner has not paid his wife's solicitor and client taxed costs as ordered by the Full Bench.

Conditions requested by Petitioner that stay be imposed only if Petitioner failed to pay instalments refused.

Provision made that stay may be lifted.

1. If Proprietary Claim is properly formulated and

2. Costs are paid - or suitable security is made available or the High Court or application by Petitioner permits costs to be paid by instalments.

Obiter view expressed that Victoria District Court does not have jurisdiction to entertain certain types of proprietary claim.

Respondent discharged from her undertaking because of delay in bringing litigation to an end due to Petitioner's conduct.

IN THE DISTRICT COURT OF HONG KONG

HOLDEN AT VICTORIA

DIVORCE JURISDICTION

ACTION NO. 2777 OF 1981

________________

BETWEEN

LIU MING SUNG

Petitioner

and

LIU LEE YUK CHING

Respondent

nee LEE YUK CHING

__________________

Coram: H. H. Judge Caird in Chambers

Date: 26th August, 1983.

--------------------

RULING

--------------------

THE APPLICATIONS

1. The petition in this cause was filed on the 23rd of December 1981 and I have now before me an application by the Respondent for orders as follows: -

"

1. That all proceedings in VDC DJ Action No. 2777 of 1981 be stayed until the Petitioner has cleared his contempt and paid the Respondent's costs in pursuant to the judgment and order of the Honourable Mr. Justice Hunter and Mr. Justice Kempster of the Full Bench dated the 28th day of July, 1982 in High Court Miscellaneous Proceeding No. 814 of 1982 in the matter of these divorce proceedings.

2. That the undertaking of the Respondent in paragraph 3 in the order made by His Honour Judge Caird herein on 20th February 1982 be discharged.

3. That the costs of this application be the Respondent's costs."

2. There is also before me a summons on the part of the Petitioner for directions and setting down the cause for hearing.

3. When the Petitioner previously made an application he was faced by a similar type of application by the respondent as presented herein which was disposed of by His Honour Judge Cruden last year.

HISTORY

4. It is necessary to briefly discuss the of this matter.

5. An ex-parte summons was set before me on the 8th January, 1982, upon which I granted orders. I was clearly in error, as pointed out by the full bench of the High Court. Subsequently the Petitioner proceeded on a course of conduct which included deliberate abuse and harnessment of the Respondent, his wife, and as a result of this irresponsible and malicious behaviour found himself facing contempt proceedings in the High Court. The Decision. of the Full Bench is reported in the 1982 HKLR at P 399.

6. As a result of the contempt proceedings an undertaking was given by Counsel for the husband, to eradicate as far as possible the effect of his conduct, and having regard to this and to the apologies tendered by the husband and upon an undertaking that the necessary steps would be taken, an order for committal did not issue, but the bench held, that the justice of the case

"will be met by an order that the husband pay the wife's costs of these proceedings on solicitors and own client basis".

Included in the necessary steps is

"(iii) the proper formulation without further delay in the Victoria District Court of the husband's proprietary claim."

FORMULATION OF THE PROPRIETARY CLAIM

7. It is the contention of Mr. Patrick Woo on behalf of the wife that the husband has not in fact formulated this proprietary claim and is therefore in contempt.

8. The position is that some time after the hearing before the Full Bench the husband filed an affidavit in the District Court which according to Miss Kwan, Counsel appearing before me for the Petitioner amounted to a formulation of his claim.

9. Basically, the husband's claims in his petition are presented under Section 4 of the Matrimonial Proceedings and Property Ordinance Cap. 192 and a standard practice is that no extended claims are presented in the petition and it is after the hearing of a petition that the common practice is for a summons to issue in relation to any claims for ancillary relief.

10. The full bench has clearly held that a proprietary type of claim is

"Where one party is asserting some beneficial interest in property held in the name of the other, often on a basis of a resulting trust".

Such a claim may well be determined at the same time as any financial claim for ancillary relief in a petition that has been separately formulated and advanced.

11. There has been no separate formulation of claim and advancing this by filing same in the appropriate court.

12. A claim of course may in other contexts be formulated by letter, or by summons motion or appropriate court proceedings.

13. As I read the decision of Hunter J. the formulation of a claim referred to at page 411 is "the proper formulation ...." of such claim. Taken in conjunction with the words used at page 404 "has to be separately formulated and advanced", it is apparent in my view that a filing of an affidavit does not amount to formulating the cause of action as contemplated by and expressly stipulated by the full bench.

14. I accept that an affidavit may possibly give the wife's counsel certain advantages at a later date when it comes to cross-examination, and indeed had the affidavit attached to it an exhibit showing the proposed pleading the wife's advisers may well have been content with this.

15. Mr. Patrick Woo throughout argued strenously that the husband was in contempt of the Full Bench order. I do not believe that it is for me to either determine whether he was in fact in contempt as a matter of law, or whether I ought to take any steps to deal with the alleged failure. It is clearly a matter for the Full Bench. However, I have come to the conclusion that the husband has not complied with the order of the Full Bench, to provide ".. The proper formulation ... in the Victoria District Court of the husband's proprietary claim."

16. It is not germane to my decision and argument has not been addressed to me, but I am concerned whether the District Court has jurisdiction to accept any claim in excess of $20,000.

17. If section 4 of the Matrimonial Proceedings and Property Ordinance is to be relied on then the District Court has jurisdiction. My concern relates to the possibility, that the husband's proprietary claims in excess of $20,000. ($40,000 in the near future) derived from possible resulting trusts or claims dependant upon some other beneficial interest.

18. The granting of a decree of divorce is precedant to claims pursuant to see E4 of Cap. 1925. The Petitioner's advisers may have to consider this and possibly seek directions from the full bench.

19. I turn to another matter, the non-Payment of costs. The wife after some considerable time had her costs taxed in the sum of $438,000.

20. These remain unpaid and these were costs that the wife has incurred, after the Petitioners disreputable actions amounting to contempt of court. It is clear that she was obliged to incur such expenses.

LAW RELATING TO STAY AS SOUGHT

21. I turn to questions of law. In all cases it is quite clear that orders staying proceedings until the wife's taxed costs are paid may issue. See Joseph v. Joseph Burnhill (1) followed in Kemp-welch v. Kempwelch & Crymes (2) also Leavis v. Leavis (3).

22. As to a party disobeying an order of the court, it is clear from Hadkinson v. Hadkinson (4) that when a party is in contempt of court then such a party is disbared from being heard by the court.

23. I am aware of the decision of Lord Denning in that case where he reviewed the history of the rule "that the party in contempt will not be heard" and showed how that this was never a rule of the common law, but that it was a rule of canon law, page 295.

24. Lord Denning sets out his views as to the modern rule at page 298,:-

"It is a strong thing for a court to refuse to hear a party to a cause, and it is only to be justified by grave considerations of public policy. It is a step which a court will only take when the contempt itself impedes the course of justice and there is no other effective means of securing his compliance......"

25. Applying this principle I am of opinion that where a party to a cause has disobeyed an order of the court, this is not of itself a bar to his being heard, but if it is disobedience which impedes the course of justice in a cause by making it more difficult for the court to ascertain the truth or to enforce the orders which may make, then it is proper that the hearing of such cause should be postponed until the impediment is removed, or good reasons advanced showing why such impediment should not be removed.

26. Applying this dictum of Lord Denning to the instant case, the failure of the husband to properly formulate his claim and notify the wife's advisers of such proper formulation does impede the course of justice in this cause. This of course can be remedied.

GENERAL ISSUES INCLUDING CUSTODY CLAIM

27. There are several issues in the instant case.

a) The hearing of the petition proper, which petition is defended.

b) The claim of the Petitioner for custody of the children.

c) Claims for ancillary relief of a financial nature.

28. It did cross my mind during the course of the hearing that it may be desirable to separate the hearing of the petition from money issues. Mr. Woo indicated that this met with his approval, however, Miss Kwan argued to the contrary and contended that the very nature of the Petitioner's allegations meant that issues at the hearing of the petition would arise similar to those which fall to be determined on the money claims, I accept her submission holding in effect that the hearing is an "all or nothing" matter.

29. Questions relating to the children if the Petitioner considers that present arrangements are unsatisfactory could easily be dealt with separately, and the orders that I make I shall not apply to any proceedings relating to custody of the children, which the Petitioner made care to institute.

30. Miss Kwan accepts that there is no answer in law, to her client being potentially subject to an order that a stay be imposed and acknowledges the Court may enter a stay on this ground. She argues however that this case comes within the exceptions where the court in its discretion, may refuse a stay.

31. I bear in mind it was the Petitioner himself who elected to harness and embarrass the Respondent and misuse the injunction which he had obtained from the Court and am not prepared to hold that Petitioner warrants an exercise of the Court's discretion in his favour.

32. A stay must be granted on both heads advanced by Mr. Woo, but not in term as sought.

SOME TERMS OF STAY

33. The drafting of the application is somewhat infelicitous in that it does not provide. for approved security for costs which I think must be provided for, in other words, if costs are paid, or suitable security is made available, the stay imposed on this ground should be lifted.

34. Also I was informed during the hearing of the summons, that an application is being prepared by these solicitors who acted for Petitioner in contempt proceedings (the solicitors acting for the Petitioner in the cause most properly not acting but electing to instruct Counsel with a watching brief) to apply for relief by seeking an order from the High Court that payment be effected  by instalments.

35. Any order made by this Court should also reflect the possibility of an order being granted in favour of the Petitioner permitting him to effect payment by instalments.

CONDITION SOUGHT T BY PETITIONER

36. Miss Kwan argued that I should, if inclined to grant a stay, impose a condition that this be imposed so long as instalments were not paid and stated during argument that her client offered $5,000 per month by way of instalments. However, on the evidence before me I am entirely with Mr. Patrick Woo and hold that there has been insufficient information put before to show that this is all can that be reasonably expected to be paid by the Petitioner. I note the Petitioner, at the time he sought an injunction was prepared to undertake to indemnify Respondent in damages. In the circumstances the suggestion of $5,000 per month is derisory and I reject any suggestion of imposing the condition sought by Miss Kwan.

THE UNDERTAKINGS

37. On the day of hearing Mr. Woo applied for leave to amend the application upon his giving certain undertakings which have now bean adhered to. Miss Kwan did not oppose this. The order concerned lifting the injunction, consequent upon certain undertakings was as follows:-

"Upon hearing Counsel on both sides and upon both Parties' undertakings referred to herein given through their respective Counsel, IT IS ORDERED THAT;-

1. The injunction referred to in paragraph 1 of the Order herein made on 8th January, 1982 upon the ex-parte application of the Petitioner (hereinafter called "the ex-parte order") enjoining "The Respondent by herself, her servants or agents or otherwise...... from in anywise attacking molesting threatening or howsoever distrubling or interferring with the Petitioner" be discharged upon the MATUAL UNDERTAKINGS given by the Petitioner and the Respondent on like terms, matatis mutandis, of the said ex-parte order.

2. The injunction referred to in paragraph 2 of the said ex-parte Order herein enjoining "The Respondent by herself, her servants or agents or otherwise...... from in anywise entering or creating any distrubance or disruption at the premises of or howsoever interferring with the business and operations of Reynold industrial Company and Reynold Plastic Industry Limited...... " be discharged upon the UNDERTAKING given by the Respondent to appoint forthwith Mr. D Agnew and Mr. C. Greaves, Partners and Chartered Accountants of Messrs. Deloitte Haskins & Sells, Certified Public Accountants, to act as joint-receivers over the management and affairs of the said Reynold Plastic Industry Limited, and upon the MUTUAL UNDERTAKINGS given by the Petitioner and the Respondent as directors of the said Limited Company to co-operate fully and to render all assistance to the said receivers whenever called upon to do so AND FURTHER upon the MUTUAL UNDERTAKINGS given by the Petitioner and the Respondent to account to the Court if called upon to do so for any trading profits or losses attained or sustained respectively in the course of their businesses under their respective sole-proprietorship.

3. That the injunction referred to in paragraph 3 of the said ex-parte Order herein restraining "The Respondent by herself, her servants or agents or otherwise from selling, transferring, interferring or howsoever dealing with any of the assets of the Respondent and/or the Petitioner and/or the joint assets of the Respondent and/or the Petitioner..... " be discharged upon the UNDERTAKING given by the Respondent not to until further order dispose of any of the properties listed in Part I of the Schedule attached hereto without first obtaining the leave of the Court. and undertaking to comply with any conditions which may in that event be imposed on the Respondent by the Court as to the application of the proceeds of sale thereof, nor to mortgage any of the properties referred to in Part I of the said Schedule beyond 50% of their market value, save and except those properties subject to pre-existing mortgages over 50% of their market value AND FURTHER upon the UNDERTAKING given by the Petitioner on like terms, mutatis mutandis, of the said Undertaking given by the Respondent, in relation to the property referred to in Part II of the said Schedule.

4. Liberty on either party to apply.

5. No order as to costs.

6. Certificate to Counsel."

38. Since that date the Respondent has been stiffle by having her freedom in dealing with property registered in her name curtailed, also she has been put to expense due to the Petitioner's unwarranted spiteful behaviour, for which expense the full bench ordered she be recompensed in full. As stated earlier she has not received one cent. I take judicial notice that since her undertaking was given there has been a time of recession, a time for decisions and in general terms action could have been necessary to preserve assets. This economic climate may well continue. It is obvious that her giving an undertaking resulting in curtailment of her freedom of action was acceptable, provided that the petition and subsequent ancillary matters proceeded to a hearing with dispatch. The Petitioner by his own action has prevented this most desirable outcome.

39. The Respondent must be discharged from her undertakings, and I shall make the appropriate orders as follows:

(1) That all proceedings, excepting any application for custody or access in respect of either or both Anne Liu and Reynold Liu children of the marriage between the Petitioner and the Respondent, be stayed until the Petitioner has conformed to an order of the Honourable Mr. Justice Hunter and Honourable Mr. Justice Kempster comprising a Full Bench of the High Court dated the 28th day of July 1982 in Miscellaneous Proceedings No. 814 of 1982 the petition in divorce presented herein VDJ No. 2777 of 1981 by "(III) The proper formulation without further delay in the Victoria District Court of the hushand's proprietary claim" or

the proper formulation of the husband's proprietary claim as directed by a Full Bench of the High Court: and

(2) (a) The Petitioner has paid to the Respondent the Respondent's costs taxed at $438,000 pursuant to a further order of the said full Bench made in the judgment hereinbefore referred to in para. 1 hereof; or

(b) The Petitioner has made available satisfactory security for costs as may be approved of by this Court; or

(c) Any order issues from the High Court ordering that the costs hereinbefore referred to in paragraph 2(a) hereof be paid by instalments.

(3) The Respondent be discharged unconditionally from each and every undertaking given to this Court as contained in paragraph 3 of an order made by this Court on the 20th of February 1982.

40. The Respondent to have her costs of and incidental to this application. To be taxed by the Deputy Registrar, Upper Scale, Certificate for Counsel.

41. In conclusion I note that in respect of the considerable delay in delivery of this judgment, much of this was due to my making a date suitable to Counsel.

(B. T. Caird)

Judge of the District Court

1.    Vol. 76 LT 1897 p.236

2.    1910 p.233

3.    1921 p.299

4.    1952 p.285

Representation:

Miss Susan Kwan instructed by Lu, Lai & Lee for Petition.

Mr. P. Wu instructed by Edmond Chow & Co. for Respondent.

Cited by 1 case

Other judgments that cite this case