Yuen O I Yee Lisa v. Chong King Po, Sally
Read the full judgment text of DCCJ 7079/2003 on BabelCite. This District Court judgment was delivered on 4 June 2004.
1. This is an application by the Defendants for an order that all further proceedings in these seven actions brought by the Plaintiff be dismissed or stayed on the ground that these actions are vexatious or an abuse of the process of the Court. The Plaintiff was the former Finance and Administration Manager of Heath Company Limited ("Heath") during the period from 15 October 2002 to 6 March 2003. The Defendants in these seven actions were her former colleagues in Heath.
Cites 2 cases
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DCCJ 7079/2003 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO. 7079 OF 2003 ____________________ BETWEEN
____________________ DCCJ 7080/2003 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO. 7080 OF 2003 ____________________ BETWEEN
____________________ DCCJ 7081/2003 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO. 7081 OF 2003 ____________________ BETWEEN
____________________ DCCJ 7184/2003 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO. 7184 OF 2003 ____________________ BETWEEN
____________________ DCCJ 7185/2003 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO. 7185 OF 2003 ____________________ BETWEEN
____________________ DCCJ 7257/2003 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO. 7257 OF 2003 ____________________ BETWEEN
____________________ DCCJ 7258/2003 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO. 7258 OF 2003 ____________________ BETWEEN
Before: His Honour Judge To in Chambers Date of Hearing: 4 June 2004 Date of Judgment: 4 June 2004 _______________ DECISION _______________ Background 1.This is an application by the Defendants for an order that all further proceedings in these seven actions brought by the Plaintiff be dismissed or stayed on the ground that these actions are vexatious or an abuse of the process of the Court. The Plaintiff was the former Finance and Administration Manager of Heath Company Limited ("Heath") during the period from 15 October 2002 to 6 March 2003. The Defendants in these seven actions were her former colleagues in Heath. 2.According to the Plaintiff, the circumstances which led to her instituting these actions are as follows. Since taking up her appointment with Heath, she discovered certain mismanagement on the part of the General Manager and Managing Director, Mr YF Lai ("Lai"). Some of the acts of mismanagement alleged were related to the appointment of an expensive Human Resources Officer, Ms Sally Chong ("Sally Chong"). This created some animosity in Sally Chong against her. For the purpose of this application, there is no need for me to go into details about the alleged acts of mismanagement. 3.During the course of her employment, the Plaintiff took part in the negotiation of the sale of Heath by its US holding company, Desa International Inc ("Desa") & HIG Capital and she was required to report the progress of the negotiation to Desa during the period from 17 to 23 February 2003. Quite unknown to the Plaintiff, on 21 February 2003, while she was away in the USA, twenty-nine of thirty five employees of Heath signed a letter addressed to Lai complaining about the Plaintiff’s conduct of the affairs of Heath, which the Plaintiff says is untrue and defamatory of her. 4.Upon the Plaintiff’s return from the USA on 24 February 2003, she was informed by one of her ex-employers, Mr Loy ("Loy"), that Sally Chong repeatedly tried to obtain past records of the Plaintiff’s employment with Loy and said something defamatory of the Plaintiff. 5.On 5 March 2003, all the staff of Heath signed a group resignation letter which Mr Fred Leung (Defendant in Action No DCCJ 7257/2003) handed to Mr Steve Marcum, a director of Heath who was visiting Hong Kong at the time. As a result, Heath terminated the Plaintiff’s employment. 6.On 2 June 2003, the Plaintiff made a complaint to the Privacy Commissioner for Personal Data against Heath for contravening the Personal Data (Privacy) Ordinance in respect of Sally Chong's unauthorised use of her personal data in contacting her former employers. This complaint was withdrawn upon Heath tendering an apology and paying the Plaintiff a sum of $20,000. 7.In July 2003, the Plaintiff made a gender discrimination complaint to the Equal Opportunities Commission (the "EOC") against Heath and Lai for terminating her employment allegedly on the basis of her gender. Subsequently, the EOC discontinued the investigation of her complaint as it was satisfied that the Plaintiff was not dismissed on the basis of her gender. 8.On 18 September 2003, the Plaintiff issued legal proceedings in the District Court against Heath, HIG Capital and Desa for improperly using her personal data to contact her former employers, inappropriately obtaining her personal data from her ex-employers and failing to disclose the identity of the ex-employers whom Sally Chong had contacted. The action against Heath was struck out by HH Judge CB Chan on 18 December 2003, presumably because of the earlier settlement between the Plaintiff and Heath while the service of the writ on Desa and HIG Capital was set aside. 9.In the meantime, in November 2003, as a result of her gender complaint, the EOC disclosed to the Plaintiff her colleagues' letter of 21 February 2003 and their statements to EOC written on the letterhead of Heath. The Plaintiff felt aggrieved because those statements. and the content of the letter of 21 February 2003 were untrue and defamatory of her. On 18 November 2003, she issued letters before action to thirteen of her former colleagues demanding an apology and a donation to a local charity by 24 December 2003. No settlement was reached. 10.Between 15 and 24 December 2003, the Plaintiff issued these seven sets of proceedings in defamation against thirteen of her former colleagues. These include three separate actions filed on 15 December 2003 individually against Sally Chong, Wilson Chiu and Kent Chan (Action No DCCJ 7079-7081 of 2003), two actions filed on 19 December 2003 against Cindy Ku, Channy Chan, Mandy Ho and Sofia Leung (Action No DCCJ 7184 of 2003) and against ChanKeung (Action No DCCJ 7185 of 2003) and two actions filed on 24 December 2003 against Fred Leung and Anno Lam (Action No DCCJ 7257 of 2003) and against Mable Tse, Ada Choi and Sannie Ho (Action No. DCCJ 7258 of 2003). All these seven District Court actions are founded on defamation and on the same set of facts. 11.Subsequent to these seven actions, which formed the subject matter of these applications, the Plaintiff instituted three other sets of proceedings in the High Court and one in the District Court between 4 March 2004 and 24 May 2004 against Heath, five of its directors, Lai, Sally Chong and another three of her former colleagues. These four actions are founded on contravention of the Personal Data (Privacy) Ordinance, malicious falsehood and defamation and are also based on the same set of facts as those in the seven District Court actions. 12.On 2nd February 2004, the Defendants took out the present seven summonses to apply for a stay or dismissal of the seven District Court actions. The law 13.The relevant legal principles on what constitutes an abuse of process have been usefully summarised by Simon Brown LJ in Broxton v McClelland and Another [1995] EMLR 485, Lexis transcript, 30 January 1995. After referring to a number of authorities, Simon Brown LJ said at page 2:
14.I think the above dicta represent the correct principles of law applicable to striking out an action on the ground of abuse of process. In summary, an action is an abuse only if the Court's processes are being misused to achieve something not properly available to the plaintiff in the course of properly conducted proceedings. There are two categories of such misuse of process: the achievement of a collateral advantage and the conduct of proceedings in a manner designed to cause problems to the defendant. It is only in the most clear and obvious case will it be appropriate upon preliminary application to strike out proceedings as an abuse of process so as to prevent a Plaintiff from bringing an apparently proper cause of action to trial. The Court should balance, on the one hand, the plaintiff s right to bring an apparently proper cause of action to trial and, on the other, the defendant's right to be protected from being abused. Thus, the corollary I would add is that even if the defendant has made out a case of abuse of process, where justice permits, a plaintiff should be allowed to maintain his action on conditions, including a stay of the action, which are sufficient to ensure the proceedings will be conducted in a proper manner without the court's proceedings being misused. 15.The Defendants' complaint of abuse of process is based on the multiplicity of actions instituted by the Plaintiff, which Mr Mok says were designed both to achieve for the Plaintiff collateral advantages, namely multiple recovery, evidence to be used against Heath in another action and re-opening of the EOC inquiry and to cause the Defendants (Heath and other defendants in related actions) problems beyond those ordinarily encountered in the course of properly conducted litigation, namely aggravating their legal costs and adverse publicity. Collateral advantage - multiple recovery 16.The present seven District Court actions are instituted against thirteen of the Plaintiff's former colleagues who signed the letter of 21 February 2003. In each action, the Plaintiff claims damages equivalent to her annual salary of $559,000. These seven District Court actions should be viewed in the context of the Plaintiff's series of litigations, including the three subsequent High Court actions and one District Court action. In HCA 509 of 2004, the Plaintiff claims damages for defamation against Heath and Lai in the amount of $13,421,941 being her loss of income for about 24 years until her retirement. In HCA 1108 of 2004, the Plaintiff claims against Sally Chong for defamation and contravention of the Personal Data (Privacy) Ordinance. She claims two sums of $755,348.83, each sum being her loss of income as at 6 May 2004 and an injunction requiring, among other things, Sally Chong to disclose the identities of the Plaintiff's ex-employers whom she had contacted. In HCA 1258 of 2004, the Plaintiff claims against the directors of Heath damages for negligence, malicious falsehood and injury to feeling in the amount of $20,132,912 and a similar injunction. In DCCJ 2702 of 2004, she claims loss of employment for malicious falsehood. All these actions are founded on the same set of facts. The seven District Court actions and HCA 509. of 2004 in particular are founded solely on defamation, while HCA 1108 of 2004 included a claim in defamation. Had the Plaintiff conducted her litigation properly, these proceedings could have been consolidated in one or two actions. 17.The Plaintiff explains that she was aggrieved by Sally Chong contacting her ex-employers and defaming her professionally. She was informed by Heath's solicitors, Messrs Johnson Stokes & Master ("JSM") that Sally Chong had spoken to three of her ex-employers, but JSM refused to disclose the identities of those ex-employers. She knew one of them was Loy but wished to ascertain the identities of the other two so that she could right herself. She approached Lai, but Lai refused to disclose their identities. She was not satisfied with Lai' s promise to send apologies to the other two ex-employers. So, she instituted the actions. This may explain why she instituted HCA 1108 of 2004 against Sally Chong and HCA 1258 against the directors of Heath but not why she instituted the seven District Court actions separately, which are the subject matter of these applications. 18.Mr Mok submits that the Plaintiff is seeking multiple recovery by claiming the same loss of annual income seven times in seven different actions and in claiming against Heath for the loss of her income for her entire working life. In addition, the Plaintiff has threatened to issue defamation proceedings against the remaining sixteen of her former colleagues. The Plaintiff explains that she never intended to profit from the litigation and it was her intention to extract an apology from the Defendants and a nominal sum which she would donate to a charity after deducting her costs of the litigation. She would then show the apologies to Steve Marcum to prove that Heath was wrong in terminating her, services As the Defendants refused to comply, she had to issue the proceedings and it remains her intention to donate the compensation less her costs to charity. 19.Whatever was the Plaintiff s intention with the damages, it is neither binding on her nor relevant for my consideration. The fact is that she has claimed seven sums of $559,000 against the Defendants and further sums against Heath. On the face, she is seeking multiple recovery. However, one must have regard to the fact that the Plaintiff is a layperson and does not know much about the law and procedure and how to quantify her damages. Presumably, she just picked her loss of annual income as her damages in respect of each of the seven District Court actions. However, in reality, any damages, if awarded, will have to be assessed. Since the defamation arose out of one set of facts and as a joint enterprise of her twenty-nine former colleagues, if she recovers damages in one action, it is unlikely that she will recover anything other than a nominal award in the other six actions. She might also be deprived of her costs. I do not think there is a real likelihood of multiple recovery. The more serious complaint, however, is her instituting multiple actions. Collateral advantage - obtaining evidence against Heath 20.On the other hand, Mr Mok submits that the Plaintiffs seven District Court actions are an abuse of process as she never intended to obtain compensation from the Defendants and her real purpose was to obtain the letters of apologies as evidence to be used against Heath in HCA 509 of 2004 and to re-open the EOC inquiry. The ultimate target was to make Heath pay her very substantial amount of damages. He argues that these are advantages which are beyond the proper scope of the action. 21.The Plaintiff is explicit as to her purpose in commencing these seven actions in the District Court and the High Court. She said in her affirmation:
The purpose is also reflected in her letters before action to the thirteen Defendants dated 18 November 2003. In the letters, the Plaintiff demanded an apology letter to be sent to her care of Steve Marcum and various sums of compensation (depending on her view of the culpability of the Defendant) in the form of charitable donations before 24 December 2003. Except in the case of Sally Chong, the donations demanded were not substantial and in due course, were reduced to a token amount. The Plaintiff is equally explicit as to her purpose regarding the apologies. She said in her letter dated 27 January 2004 to the Defendants' solicitors:
She said the same in her e-mail to Lai on 11 December 2003:
22.Thus there is no doubt that the Plaintiff intended to obtain the apologies as evidence against Heath in HCA 509 of 2004 and possibly other action and to re-open the EOC inquiry. On the face, these Defendants defamed the Plaintiff and caused her to lose her job. She is entitled to vindicate herself. Usually a letter of apology with a nominal compensation is an acceptable form of settlement in an action in defamation. If indeed she is successful in the action, she would be entitled to an award of damages. An award, even if a nominal one, has the same effect as a letter of apology. She would be entitled to use the letter of apology in just the same way as she may use a judgment made in her favour. 23.However, the terms of the "apology" she demanded is peculiar. In her letter dated 27 January 2004 to JSM, she spelt out the terms of the "apology" she required as follows:
24.It could be seen that the terms of the apology demanded by the Plaintiff was much wider than she would be entitled in an action in defamation. Items (b), (c) and ( e) are not related to defamation. Obviously, the Plaintiff’s purpose of obtaining apologies in those terms is to use them as evidence against Heath in HCA 509 of 2004 and to enable her to re-open the EOC investigation. In item (c), the Plaintiff is seeking to obtain a confession from the Defendants that their statements to the EOC were untrue and defamatory. It is trite law that no action in defamation can be founded upon statements given to a statutory tribunal in the course of its investigation: see Mahon v Rahn (No 2) [2000] 1 WLR 2150. The Plaintiff will not be successful in an action based on those statements and is not entitled to seek to an apology in respect of those statements. An apology along those lines from Lai, the General Manager and Managing Director of Heath, as per item (e) goes a long way to prove substantial damages for the Plaintiff in her action against Heath. A judgment in favour of the Plaintiff in an action in defamation based on the letter of 21 February 2003 will not have those effects. The Plaintiff is patently misusing the Court's process to achieve a collateral advantage not properly available to her in the course of properly conducted proceedings. Aggravating the Heath's or the Defendants' costs in defending the claim 25.Here, the Defendants' complaint is that by instituting multiple proceedings, the Plaintiff is deliberately aggravating the Defendants' costs in defending her claims. The Plaintiff’s explanation for not suing the thirteen fonner colleagues in one action is a benevolent one. She says that she picked her friends as the first targets for instituting action in the hope that the letters before action would be able to provoke their conscience into apologising and set an example to the other fonner colleagues. How that idea would commend to the Plaintiff and to her friends being so chosen, I do not know. It rather occurred to me that she was probably adopting the tactic of divide and conquer. In so doing, she is at least aggravating the Defendants' costs, if not seeking a collateral advantage. 26.Her intention to aggravate the Defendants' costs can be seen from her letter to JSM dated 27 January 2004, which I quoted above. In the later part of that letter, she wrote:
This shows that she wanted the Defendants, or Heath which is financing their defence, to be penalised in having to incur more legal costs in defending the separate actions she instituted, which would not have been incurred had she sued them all in one action. 27.The Plaintiffs purpose in aggravating the Defendants' costs is also reflected in her e-mail to Steve Marcum on 13 January 2004 in which she wrote:
The Plaintiff knew that Heath is financing the Defendants' costs of the litigation. By mentioning "individual and personal claims", it is obvious that she knew it would cost Heath more to defend separate actions against each Defendant than if the Defendants were sued in one action. It is also obvious from the above e-mail that her purpose for instituting separate actions is to make it costly to defend and to coerce Heath into settling her action in HCA 509 of 2004. 28.Again, on 15 January 2004, she e-mailed Steve Marcum and wrote:
This e-mail shows that the Plaintiff is taking pleasure in issuing different writs for different causes of action apart from -separate action for individual Defendants. This explains why the four actions subsequent to these seven District Court actions were not instituted together. Her purpose is obviously to increase Heath's costs in defending her claims. 29.On 4 February 2004, the Plaintiff wrote to Steve Marcum as follow:
This e-mail explains her "philosophy" for instituting multiple actions and shows that she takes pleasure in Heath having to incur legal costs in each proceeding while she did not have to as she was able to appear in person. It follows that the purpose of instituting multiple actions was to make Heath pay more. 30.I think these correspondences are more than ample to demonstrate that the Plaintiff's real purpose of instituting multiple actions was not only to aggravate Heath's costs in defending her claims but to make it so costly as to force Heath into submitting to her action in HCA 509 of 2004 and to settle with her for a substantial payment. The Plaintiff never intended to recover from these Defendants, presumably because she knew they could not afford her claim and any judgment obtained against them would be empty. The Plaintiff intended to recover against Heath as she had made clear in her affirmation and in her submission made in Court. I am satisfied that these proceedings are conducted in a manner designed to cause the Defendants problems of costs in that they cannot pool their financial resources together to defend her claim jointly or to aggravate Heath's costs in defending the claims for its employees. I am also satisfied that these proceedings are conducted in a manner designed to force Heath into settling the Plaintiffs claim in HCA 509 of 2004 by paying her a substantial amount. In this respect, the Plaintiff is also seeking a collateral advantage as well. This is a clear case of abuse of the process of the Court. Should the actions be dismissed or stayed style="text-align:justify">31. The Defendants have made out a case of abuse of process of the Court. The next issue is whether the Plaintiff’s actions should be dismissed or stayed. It has not been argued by the Defendants that the letter of 21 February 2003 was not defamatory. Thus, there is a prima facie case of defamation and the defamation has caused the Plaintiff to lose her job. The burden is then on the Defendants to raise the defence of justification or fair comment. Thus the Plaintiff appears to have a good and proper cause of action to trial. There is nothing to suggest that the proceedings could not be put back on the right track so that they could be conducted in a proper manner. In the circumstances, justice requires that the Plaintiff should not be deprived of her right to go to trial. Accordingly, I order that the Plaintiff’s actions be stayed save for the purpose of applying for consolidation with other existing actions between the Plaintiff and related parties. Upon consolidation, directions for the further and proper conduct of the proceedings may be sought. Costs 32.The Defendants are successful in these applications and must be entitled to their costs. If a plaintiff abuses the process of the Court, costs are unnecessarily incurred and wasted. Not only that the defendant should be entitled to recover all his costs, i.e. case on an indemnity basic, there is no reason why he should be kept out of his costs until the conclusion of the action. The plaintiff should face the consequence of immediate taxation and payment brought by his own abuse of the process of the Court. I therefore consider it always appropriate in a case of abuse of process of in Court that the plaintiff should usually be ordered to pay the costs of the defendant on an indemnity basis and forthwith. This is a clear case of abuse of process. The Plaintiff conducted her proceedings in bad faith. One of her purposes for instituting seven separate actions was to aggravate the Defendants' costs. As a result, unnecessary and excessive costs have been incurred and wasted. However, having regard to the conduct of the Defendants which led to these litigations, I am prepared, and for this occasion only, to err on the side of leniency without ordering the Plaintiff to pay costs on an indemnity basis. But this is certainly an appropriate case in which costs should be ordered to be paid forthwith. Accordingly, I make an order that the Plaintiff shall pay the Defendants' costs with certificate for counsel and such costs are to be taxed, if not agreed, and paid forthwith. Conclusion 33.For the above reasons, the proceedings brought by the Plaintiff in these seven actions are stayed save for the purpose of applying for their consolidation with other existing actions between the Plaintiff and related parties. The Plaintiff shall pay the Defendants' costs of these applications with certificate for counsel. Such costs are to be taxed, if not agreed, and to be paid forthwith.
Plaintiff, in person Mr. Johnny Mok, instructed by Messrs Johnson, Stokes & Master for the Defendants |
Cases cited in this judgment
Further hearings and rulings under DCCJ 7079/2003