Tang Fook Tai v. Yang Fang Lang t/a Sinon Orchids Nursery
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DCEC144/2008 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION EMPLOYEES' COMPENSATION CASE NO. 144 OF 2008 ----------------------
---------------------- Coram: H H Judge Marlene Ng in Chambers (open to the public) Date of Hearing: 13th October, 2008 Date of Directions: 13th October, 2008 Date of Handing Down Reasons for Directions: 17th October, 2008 --------------------------------------- REASONS FOR DIRECTIONS -------------------------------------- I. Background 1. The Applicant claimed that on 6th March 2006 whilst working in the course of his employment with the Respondent inside the Respondent’s nursery in Yuen Long (ie pushing a cart loaded with potted plant waste), she fell and sustained injury to the right side of her body (“Accident”). On 30th January 2008, the Applicant commenced the present proceedings against the Respondent to claim for employees’ compensation and to appeal against the assessments in the Certificate of Review of Assessment date 29th October 2007. 2. The Application referred to 3 addresses for the Respondent, namely (a) 2 local business addresses in Yuen Long and Mongkok respectively (“Yuen Long Address” and “Mongkok Address”, collectively “Hong Kong Addresses”), and (b) a residential address in Taiwan (“Taiwan Address”). In light of the Taiwan Address, the Application was marked not for service out of jurisdiction. 3. Pursuant to rule 17(1) of the Employees’ Compensation (Rules of Court) Rules (“Rules”), the Registrar of the District Court (“Registrar”) attempted to cause a copy of the Application together with a copy of the notice in Form 4 of the Schedule to the Rules (“1st Form 4”) to be served upon the Respondent at each of the Hong Kong Addresses by registered post on 1st February 2008. The 1st Form 4 was to inform the Respondent that he must lodge with the Registrar an Answer within 21 days after service of such form, and that in default of compliance or of his appearing at the hearing of the Application on 7th March 2008 such order might be made as the court would deem just and expedient. 4. On 4th February 2008, the Registrar wrote to inform the Applicant’s solicitors that service on the Taiwan Address could not be effected by the Registrar pursuant to rules 13 and 17(1) of the Rules, and urged them to apply to the court for directions as to the manner of service pursuant to rule 14 of the Rules. 5. In due course, the Registrar notified the Applicant’s solicitors that copies of the Application and Form 4 posted to the Hong Kong Addresses were returned marked “已離職及已遷” for the Yuen Long Address and “unclaimed – return to sender” for the Mongkok Address. This meant the Registrar’s attempts to serve the Application on the Respondent locally were unsuccessful. 6. On 13th February 2008, the Applicant filed an ex-parte application for an order to effect service of process by sending by prepaid registered post to the Respondent’s Taiwan Address or in such manner as the court might direct (“1st Ex-parte Application”). The Applicant filed his affirmation dated 13th February 2008 in support (“1st Affirmation”). 7. By the 1st Affirmation, the Applicant verified that she worked at the Respondent’s nursery at the Yuen Long Address at the material time. The Respondent, who resided in Taiwan and only came to Hong Kong occasionally or a few times a year, had a retail outlet at the Mongkok Address. The Respondent’s staff managed the day-to-day business operations. The Applicant had not seen the Respondent after the Accident, and did not know the Respondent’s address in Taiwan. But the Respondent’s business registration search records revealed that (a) her residential/business address was the Taiwan Address, and (b) she had ceased business in Hong Kong on 30th July 2006. The Applicant believed the Respondent still resided in Taiwan, but was unaware of any address of the Respondent other than the Taiwan Address. 8. On 19th February 2008, by written requisition to the Applicant’s solicitors, I directed inter alia the Applicant to comply with Order 11 of the Rules of the District Court (“RDC”) since the RDC applied mutatis mutandis to employees’ compensation cases. I drew the attention of the Applicant’s solicitors to section 21 of the Employees’ Compensation Ordinance Cap.282 (“Ordinance”) and Li Kwok Shing v Law Ka Fu trading as Wing Fai Electrical Engineering CACV212/2002 (unreported, 21/6/03). 9. If Order 11 of the RDC is applicable, the relief sought in the 1st Ex-parte Application is prima facie inappropriate. Service by prepaid registered post is within the domestic scope of the Rules, and it is necessary to invoke substituted service as well as service abroad under rule 14 of the Rules and Orders 11 and 65 of the RDC for service abroad by post. Normally, it is only after efforts to effect service abroad in the manner prescribed in Order 11 of the RDC have failed that an application is made to the court for substituted service (see Hong Kong Civil Procedure 2008 Vol.1 para.65/4/8 at p.1029). 10. On 28th February 2008, the Applicant filed another ex-parte application pursuant to Order 11 of the RDC for an order that service of process might be effected on the Respondent at the Taiwan Address in such manner as the court might direct (“2nd Ex-parte Application”). 11. The Applicant’s affirmation dated 28th February 2008 was filed in support of the 2nd Ex-parte Application (“2nd Affirmation”). By the 2nd Affirmation, the Applicant verified the Accident arose out of and in the course of her employment with the Respondent, and exhibited a copy of the Form 2 dated 10th July 2006 submitted to the Labour Department and a copy of the Form 9. The Applicant claimed her solicitors advised she had a good cause of action against the Respondent. The Applicant reiterated the matters in the 1st Affirmation, and added that she believed the Hong Kong Addresses were no longer the Respondent’s addresses since the Respondent had already ceased business in Hong Kong on 30th July 2006. 12. On 6th March 2008, I raised inter alia the following written requisitions with the Applicant’s solicitors :
13. On 5th March 2008, MSIG Insurance (Hong Kong) Ltd (“Insurer”) applied by inter partes summons (“Summons”) for inter alia the following reliefs :
14. The affirmation of the Koon Yin Ting (“Ms Koon”), solicitor for the Insurer, dated 5th March 2008 was filed in support of the Summons (“Koon’s Affirmation”). The Insurer issued an insurance policy which included coverage for employees’ compensation in favour of the Respondent and was the insurer concerned in respect of the alleged Accident. On 5th March 2008, the Insurer’s solicitors wrote to the Respondent declining liability under the policy. Ms Koon stated the Insurer had an interest in the outcome of the present proceedings by virtue of Part IV of the Ordinance, and wished to be joined as a party to protect its interest. 15. The Insurer’s solicitors posted copies of the Summons and Koon’s Affirmation to the Hong Kong Addresses by ordinary post and to the Taiwan Address by airmail. 16. At the call-over hearing on 7th March 2008, I adjourned both the Application and Summons since such processes had not been properly served on the Respondent and the Applicant’s solicitors had yet to respond to my written requisitions of 6th March 2008. I urged the solicitors for both the Applicant and the Insurer to cooperate on the matter of service of the Application and Summons on the Respondent. 17. On 28th August 2008, the Applicant’s solicitors sent a letter to the court (with copy to the Insurer’s solicitors) giving the following information (“Letter”) :
18. The Applicant’s solicitors submitted in the Letter that (a) the Rules provided for simplified procedure for service of applications and documents, (b) rule 14 dealt with service out of jurisdiction, and (c) rule 17(1) provided that the Application and the Form 4 notice be served by the Registrar. “If the Court is with us, we will await to further proceed until after the service of Applicant’s Application in Form 4 by the Registry”. The tenor of the Letter anticipated that the Registrar would serve copies of the Application and the Form 4 notice on the Respondent even if the address for service were outside jurisdiction, and the Applicant would not proceed further until the Registrar had done so. 19. On 8th September 2008, I granted paper directions that the 2nd Ex-parte Application be adjourned for hearing before me, and such hearing was eventually fixed to be returnable on 13th October 2008. In the paper directions, I pointed out that it was inappropriate to support the 2nd Ex-parte Application by letter, and any affidavit in support should be filed three clear days before the hearing. I reminded the Applicant’s solicitors to be in a position to address why there was no reference to any attempt to make enquiries locally, and why the provisions in Order 11 of the RDC would not be applicable even if rule 14 of the Rules were applicable. 20. By the affirmation of Chan Kar Fung Peter (“Mr Chan”), solicitor for the Applicant, dated 6th October 2008 filed in support of the 2nd Ex-parte Application (“Chan’s Affirmation”), Mr Chan gave the following information :
II. Directions 21. At the hearing before me, I granted the following directions in respect of the Application :
22. Ms Koon applied for service of the Summons and Koon’s Affirmation out of jurisdiction by relying on the grounds as set out in the 2nd Affirmation and Chan’s Affirmation. So in respect of the Summons, I also granted the following directions :
23. Subsequent to the hearing, I discovered that the date of the adjourned hearing of the Amended Application and the Summons of 7th March 2009 was an inadvertent error since there will be no sitting on Saturday. I now direct that the adjourned hearing be returnable at 9:30am on 6th March 2009. 24. Further, for completeness’ sake, in respect of the direction in paragraph 21(g) above, the reference to “Order 11 rule 1 of the RDC” should read as “Order 11 rule 1 of the RDC and rule 14 of the Rules”, and in respect of the direction in paragraph 22(b) above, the reference to “Order 11 rule 9 of the RDC” should read as “Order 11 rule 9 of the RDC and rule 14 of the RDC”. 25. At the hearing before me, neither Mr Chan nor Ms Koon prepared any draft order in respect of their respective ex-parte applications for service of the relevant process out of jurisdiction. Solicitors of the party making an ex-parte application should submit a draft order for the court’s consideration, and it is not for the court to frame and write up the directions. In future, the party having carriage of the ex-parte application should set out in precise terms the directions he seeks by way of a draft order, failing which the court may defer consideration of such ex-parte application until the draft terms of the order sought are submitted. III. Service out of jurisdiction 26. In this modern age of globalisation, cross-border movement of employers and employees is not unusual. Overseas individuals or businesses may employ personnel in Hong Kong, and local personnel may go and work abroad. Nowadays, it is not unusual to discern elements that touch on Mainland China, Macau and/or Taiwan in employees’ compensation proceedings that may necessitate applications for service of process out of jurisdiction. 27. However, given the special nature of employees’ compensation cases and the relevant statutory scheme, the court in granting leave for service abroad will require appropriate modification of the usual directions so as to meet the statutory requirements of employees’ compensation cases. If these necessary adjustments are overlooked, such laxity may lead to substantial delay and costs. Consequently, practitioners should take due care to ensure that all relevant directions are appropriately adjusted for employees’ compensation proceedings generally and for the particular circumstances of the cases to hand when applying for service out of jurisdiction. I will discuss below some of the general considerations, but they do not and should not set exhaustive parameters. After all, procedural directions must retain sufficient flexibility to cater for the particular circumstances of each case that comes before the court. 28. The starting point with service of the Application in employees’ compensation proceedings is rule 17(1) and (2) of the Rules :
29. A number of matters are evident from the above :
30. However, the Rules provide for the Registrar to serve the Application and the Form 4 notice on the respondent where the respondent has an address for service or has a solicitor or authorised agent for accepting service within Hong Kong. This is evident from rule 13 of the Rules which provides inter alia as follows :
31.Presently, the Registrar serves the Application and the Form 4 notice on the respondent by registered post. Where the respondent’s address for service is outside Hong Kong, it falls outside rule 13 of the Rules. Apart from rule 14 of the Rules (which I will discuss below), rule 15 of the Rules provides inter alia that “[save] where other provision is made, service shall be effected by or at the instance of the parties”. 32.Mr Chan argued that rule 14 of the Rules governs service of process out of jurisdiction in employees’ compensation proceedings. Rule 14 of the Rules provides inter alia as follows :
33.In support of such contention, Mr Chan relied on Hong Kong Civil Procedure 2008 Vol.2 para.K1/21/2 at p.785 which provides inter alia as follows :
34.Even so, it is in my view still necessary to consider the requirements of Order 11 of the RDC. Section 21(1) of the Ordinance provides inter alia as follows :
35.In Li Kwok Shing, a case which dealt with the interplay between Order 22 of the RDC and rule 20 of the Rules in relation to payment into court, Woo JA held at para.26 that “the proper interpretation is that a particular rule of the RDC only has no effect on EC claims so long as it conflicts with one or more rules of the [Rules] made under s 50 of the [Ordinance]. In my judgment, there is no conflict between Rule 20 of the [Rules] and O 22 of the RDC”, and hence Order 22 was applicable (see also Sun Jianqiang v Trans-island Limousine Service Limited CACV20/2003 (unreported, 17th November 2003)). 36.Having considered the provisions of Order 11 of the RDC, in particular the general provisions therein for service out of jurisdiction (see Order 11 rules 5-8A of the RDC) and the provisions for service abroad of non-originating processes and summonses etc in existing proceedings (see Order 11 rule 9 of the RDC), I am of the view that Order 11 of the RDC is not inconsistent or in conflict with rule 14 of the Rules. Rather Order 11 of the RDC supplements the sparsity of the provision in rule 14 of the Rules by, say, providing guidance on the “circumstances” to be deposed in the affidavit in support of the ex-parte application, and filling in the lacuna on the proper modes of service abroad. 37. In my view, Order 11 of the RDC is applicable mutatis mutandis to employees’ compensation proceedings with suitable modifications in light of, say, the absence of any provision for acknowledgment of service of the Application under the employees’ compensation statutory scheme. 38. Given the requirements in both the Rules and the RDC in relation to service abroad, the court is likely to exercise its discretion to direct that service of the Application and the Form 4 notice shall be effected by or at the instance of the relevant party, eg the applicant in respect of the originating Application. 39. Further, in making the ex-parte application for service of process out of jurisdiction, the supporting affidavit (which should be accompanied by a draft order) should state the following :
40. In respect of the adjournment of the first call-over hearing specified in the Form 4 notice referred to in paragraph 39(h) above, since at least one month should elapse between the date of such call-over hearing and the date of service of the Form 4 notice pursuant to rule 17(1) of the Rules, the supporting affidavit, which must be frank, will need to spell out the estimated time required for effecting the proposed mode of service abroad to satisfy the court that sufficient time will elapse between effecting such service as proposed by the applicant and such call-over hearing. 41. However, in granting leave for service out of jurisdiction, the court does not endorse or accept the mode of service abroad that may be deposed in the supporting affidavit as the proper mode of service. The court considers the information in the affidavit for the limited purpose set out in the above paragraph. It is only after the court grants leave and service out of jurisdiction is effected that the court will consider the propriety of the mode of service actually adopted as specified in the affidavit of service. 42. It is on the basis of the above considerations that I have granted the directions set out in paragraphs 21 and 22 above. Whilst each case must turn on its own circumstances, it is hoped that practitioners will bear the above considerations in mind when making applications for service out of jurisdiction in employees’ compensation cases, and have regard to their relevance or otherwise to the case at hand.
Representation: Mr Chan Kar Fung of Messrs K F Chan & Co for the Applicant. Ms Jay Koon of Messrs Szwina Pang, Edward Li & Co for the Intended Respondent. |
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