Lau Luen Hung Thomas v. Insider Dealing Tribunal and Another
Read the full judgment text of HCMP 1017/2008 on BabelCite. This High Court CFI judgment was delivered on 9 April 2009.
1. For the reasons contained in the judgments of Tang VP and Stock JA, I too would dismiss the applications for extensions of time to appeal.
Cites 6 cases
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HCMP 1017/2008 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF APPEAL MISCELLANEOUS PROCEEDINGS NO. 1017 OF 2008 _________________________
BETWEEN
_________________________ Before: Hon Ma CJHC, Tang VP and Stock JA in Court Date of Hearing: 3 March 2009 Date of Handing Down Judgment: 9 April 2009 _______________ JUDGMENT _______________ Hon Ma CJHC: 1.For the reasons contained in the judgments of Tang VP and Stock JA, I too would dismiss the applications for extensions of time to appeal. Hon Tang VP: 2.On 8 September 2006, the applicant was identified as an insider dealer by the Insider Dealing Tribunal (“the Tribunal”). The applicant was ordered to pay $15,301,676 to the government under section 23(1)(b) of the repealed Securities (Insider Dealing) Ordinance Cap. 395 (“SIDO”), which was the total profit gained as the result of insider dealing, all being attributable to the applicant. The applicant was in addition ordered to pay to the government a penalty of $15 million under section 23(1)(c) of SIDO. 3.The Tribunal’s order was registered with the Court of First Instance on 14 December 2006. The applicant has paid the penalty. 4.On 18 June 2007, the applicant applied by summons in HCMP 1161/2007 for leave to appeal out of time. That application followed the decision of this court (Ma CJHC, Tang VP and Stone J) in Koon Wing Yee v Insider Dealing Tribunal and another, unreported, CACV 358/2005 and CACV 360/2005, dated 30 May 2007. Koon Wing Yee was an insider dealer, who had been ordered by the Insider Tribunal to pay the total profit gained as a result of insider dealing as well as a penalty under section 23(1)(c) of SIDO. His appeal to the Court of Appeal was allowed, and the orders made by the Tribunal were set aside in their entirety. 5.On 5 September 2007, Cheung JA granted the applicant leave to appeal the Tribunal’s order out of time. On 14 September 2007, the Financial Secretary applied to set aside leave granted. On 28 February 2008, this court (Ma CJHC and Stock JA) set aside the leave that had earlier been granted. 6.On 18 March 2008, the judgment on appeal from the Court of Appeal in Koon Wing Yee v. Insider Dealing Tribunal and another, was handed down by the Court of Final Appeal. The Court of Final Appeal set aside the order made in the Court of Appeal and:
7.On 26 March 2008, by notice of motion in HCMP 1751/2007, the applicant applied for leave to appeal to the Court of Final Appeal from the decision of the Court of Appeal made on 28 February 2008. 8.On 9 May 2008, the Court of Appeal (Ma CJHC, Stock JA) dismissed the application. 9.In response to the applicants’ solicitors’ letter of 25 April 2008, by letter dated 29 April 2008 the Financial Secretary has refused to refund the penalty. 10.By this application, which was made on 30 May 2008, the applicant seeks leave to appeal in order to quash the penalty of $15 million, essentially, because of the declaration by the Court of Final Appeal that section 23(1)(c) of SIDO is invalid. The declaration made by the Court of Final Appeal operated retrospectively as the Court of Final Appeal recognized. 11.The relevant principles in granting leave to appeal out of time are to be found in HKSAR v Hung Chan Wa and Anor [2006] 9 HKCFAR 614, a decision of Court of Final Appeal. In his judgment (which had the concurrence of the other members), the Chief Justice said the time limit for appeals:
12.However, whether time should be extended for an appeal against conviction, although a matter of discretion for the courts, would depend on the existence of exceptional circumstances:
and the well-established principle is that:
13.The Chief Justice went on to say:
14.The authorities referred to by the Chief Justice in his judgment included R v Thomas [1990] 1 SCR 713, a decision of the Supreme Court of Canada. Thomas was concerned with a person who had been convicted of second degree murder. The application for leave to appeal was made 3 years after the prescribed time of appeal. The court regarded the applicants as having been convicted:
15.Sopinka J in delivering the judgment of the court said:
The court then proceeded to treat the applicant in the same way as an applicant who was applying for an extension of time to appeal on the ground that an authoritative judgment subsequent to the conviction has held the previous understanding of the law to be incorrect. 16.Mr McCoy for the applicant relied on R v Kwok Hing-man [1994] 2 HKCLR 160. The court was there concerned with a person who was convicted:
17.He was convicted on 5 September 1991.
18.Apparently, since 8 June 1991, 386 persons had been convicted under section 30. Kwok Hing-man was selected as a test case and legal aid was granted to him and the application for leave out of time was made direct to Court of Appeal pursuant to the order of the Chief Justice made on 29 March 1994. After referring to R v Thomas and stating that that decision, although not binding, was of high persuasive authority, Nazareth JA said:
19.Nazareth JA then turned to consider to the exercise of the discretion. He quoted an extract from the judgment of Geoffrey Lane LJ in R v Mitchell [1977] 1 WLR 753 at page 756H:
Nazareth JA went on to say:
20.Mr McCoy relies, in particular, on the statement that where a person has been convicted of a non-existent offence,
and the fact that it had the agreement of the other members of the court. 21.In Hung Chan Wa, the Court of Final Appeal expressed no opinion on the correctness of Kwok Hing-man in relation to the extension of time for an appeal against conviction for a non-existent offence. It emphasised, however,
22.Mitchell was an unusual case. In that case Mitchell had pleaded guilty to two offences of possessing a quantity of leaves, stalks and clean seeds of cannabis (clean seeds being seeds without their husks which contained no resin) and was found guilty of two offences of possessing them with intent to supply. He was sentenced to a term of imprisonment. He appealed against sentence. But after a decision of the Court of Appeal that leaves and stalks were not cannabis within the definition of section 37 of the Misuse of Drugs Act 1971, he applied for an extension of time in which to apply for leave to appeal against conviction. In the case of the clean seeds the Court of Appeal in Mitchell held that clean seeds of cannabis were also not within the relevant definition of cannabis. 23.Geoffrey Lane LJ said in the judgment of the court (within this passage is the extract referred to in para. 19 above):
24.It is clear from this passage that whether or not leave to appeal out of time should be given will depend on the particular circumstances of the case. In Mitchell, the circumstances were described as “unique”. It follows from this, the fact that a person is in prison can be but just one factor to be taken into account. 25.Nor would the fact that the appeal is likely to succeed a sufficient exceptional circumstance for leave to be granted, although lack of merits or substantial merits in an appeal would be a good reason to refuse leave. As Nazareth JA said in Kwok Hing-man:
26.The line between a non-existent offence and a misunderstanding of the ambit of the offence may be a fine one. Many would find it difficult to understand why a conviction under a misunderstanding of the ambit of an offence should be treated differently (if that be the case) from a conviction under a non-existent offence. In both cases, absent other considerations, the appeal would be allowed if time to appeal is extended. But if Mr McCoy is right, only the latter is an exceptional circumstance. In Mitchell, was the conviction a conviction under a non-existent offence or a misunderstanding of the ambit of the offence? One might say that it was never an offence to possess leaves of cannabis although there was in law an offence to possess some other parts of a cannabis plant. 27.Ultimately, in my view, as Nazareth JA said:
I do not believe that the exercise of such discretion should depend on legal niceties arising from the fine distinction to which I have alluded. 28.No doubt appropriate weight must be given to the fact that a person has been convicted of a non-existent offence. Depending on all the circumstances, an appeal out of time may be granted. 29.I have to consider whether in this case an extension of time should be granted. Here the delay (about 20 months) is substantial. In considering delay, time must run from the date of the order, and not (as Mr McCoy suggested) from the date of the subsequent decision which the applicant wished to rely on. 30.Nor is this the first application for leave to appeal out of time. In the first application which was made after the decision of the Court of Appeal in Koon Wing Yee, leave was refused by this court. 31.Here, the applicant was throughout represented. 32.In the affirmation made in support of this application it was said that:
33.It may be that the precise argument was not alighted upon by the applicant’s legal advisers. However, it is quite clear that the vice of section 23(1)(c) of SIDO was that it was criminal in nature. In the Court of Final Appeal the relevant questions identified as arising on the appeal were:
34.Sir Anthony Mason NPJ stated (with the concurrence of the other members):
35.The Court of Final Appeal decided that the appropriate order to be made was a declaration of invalidity of section 23(1)(c). 36.Indeed, although the earlier decision of this court refusing leave was handed down on 28 February 2008 and had predated the decision of the Court of Final Appeal in para. 10 of the judgment, the court recorded Mr McCoy’s submission that:
37.So, although the court in Koon Wing Yee had not said explicitly that the applicant had effectively been convicted of a non-existent offence, Mr McCoy argued it had in substance this effect. This was rejected, as the above passage shows. The fact that this is the applicant’s second attempt for leave to appeal out of time is also a relevant consideration. 38.I agree with Mr McCoy that we are concerned with a substantial sum of money. It is also true that the Financial Secretary has refused to repay it. Mr McCoy has not conceded that unless leave to appeal is extended, the amount would not be recoverable in civil proceedings. Indeed, he suggested the contrary. As to that, I express no view. The amount is substantial but it has to be viewed in the context of the amount of profit which was held to have been attributable to the insider dealing by the applicant. Moreover, the authorities show that the fact that a person may be serving a long term of imprisonment might not by itself be a sufficient reason for an extension of time to appeal to be granted. 39.So in all the circumstances, I would refuse an extension of time to appeal out of time. Hon Stock JA: Some procedural history 40.Before addressing the merits of the application, I wish to make a brief note, for the sake of completeness, about the history of these proceedings and in particular about the essential reasons for some of the decisions thus far taken:
41.The written argument presented on behalf of the applicant on this occasion suggested that in its Reasons for Judgment (dated 19 May 2008) for refusing, on 9 May, leave to appeal to the Court of Final Appeal, this Court, as constituted by the Chief Judge and myself, “indicated that the Applicant should apply afresh to the Court of Appeal for leave to appeal out-of-time ... based on the decision of the CFA in Koon Wing Yee” and that “in this way, the effect of the repeal of s 23(1) (c) [of SIDO] … could be argued for the first time before the Court of Appeal.” It should be made clear that we said nothing of the sort. We were dealing with an application for leave to appeal to the Court of Final Appeal but the ground of the application for leave to appeal to that Court did not arise from this Court’s earlier decision. Rather, the matter of complaint was a new issue, namely, the striking down by the Court of Final Appeal in Koon Wing Yee of s 23(1) (c). Any attempt by this applicant to benefit from that aspect of Koon Wing Yee had to be made (‘if so advised’, we expressly said) by a fresh application for leave to appeal out of time. That was merely a statement of the correct procedural steps be taken if the applicant, upon advice, which to pursue that particular point. It was not an indication that the applicant should take that course. The merits 42.The established principle is that time should not be extended for appeal for the reason only that an authoritative judgement has overturned a previous understanding or interpretation of the law : see Hung Chan Wah, para 24. In stating this principle, the Chief Justice in Hung Chan wah cited in its support a series of authorities some of which post-dated and were not referred to in Kwok Hing Man. 43.R v Thomas 1990 1 SCR 713 evidences a somewhat hard-edged test in Canada which is whether or not the accused, in a criminal case, is still in the judicial system. Also cited by the Chief Justice was R v Unger [1977] 2 NSWLR 990 (not referred to in Kwok Hing man) in which the court said:
44.Further cited was R v Knight [1998] 1 NZLR 583 where at 588-589, the Court said:
45.In Ballinger [2005] 2 Cr App R 433, also cited, reference was made to yet another case mentioned by the Chief Justice in Hung Chan wah, namely, Hawkins [1977] 1 Cr App R 234. In Ballinger, Scott Baker LJ said at 437-438:
46.The applicant in this case is well out of the parameters envisaged by the phrase "still in the system," and the cases cited by the Chief Justice in Hung Chan wah illustrate just how exceptional must the circumstances be to enable an applicant to re-enter on the ground of a change in the interpretation of the law. 47.What the applicant relies on is the suggestion that the Court in Hung Chan Wa left open the possibility that a rare and extraordinary circumstance would arise where a person had been convicted for an offence which a higher court later held to be non-existent. It is true that in so far as the Court stated that it expressed no opinion about the correctness of a decision to that effect in Kwok Hing Man, the door was not closed but, even so, there are a number of factors that distinguish this situation. This is not a case that involves the liberty of the subject nor, following the very decision of which the applicant seeks now to make use, is it a case involving a criminal conviction and it is also not a case in which such stigma as might attach to a finding of insider dealing is at stake, for this application for leave to appeal out of time is not directed at that finding. Moreover, it would appear that in Kwok hing man, the appellant was not legally represented at the time of his trial: he was a person who, as the Court commented at p162, was “young and somewhat illiterate” and “could not be expected to spot the inconsistency of s 30 with the relevant articles of the Bill of Rights, or to have anticipated the court's decision." By contrast, this is a case in which the applicant has at all material times been legally represented and who, as was pointed out in the judgment of the Chief Judge in this particular case on 28 February 2008, had been specifically advised on the issue which it fell for the Court of Final Appeal in Koon Wing Yee to determine. The fact that the Court of Final Appeal alighted upon a result which was not anticipated by those advising this applicant must be beside the point. The consequences of extending time in this particular case would not only be to open the door to repayments in a myriad of instances of those found to be culpable insider dealers, where the findings cannot be the subject of any justifiable attack, but would also significantly lower the threshold of true exceptionability designed for circumstances peculiar to specific rare cases. 48.For these reasons, I too would dismiss this application.
Mr. Gerard McCoy, SC & Mr. Kevin Patterson, instructed by Messrs Sit, Fung, Kwong & Shum for the Applicant Mr. Ronny Tong, SC & Mr. Abraham Chan, instructed by the Department of Justice for the 2nd Respondent |
Cases cited in this judgment
Further hearings and rulings under HCMP 1017/2008