The Queen v. Wong Yan Fuk

Case No.HCMA 414/1993
Court
High Court CFI
Date18 Nov 1993
Judge
Case Document
100%

Magistracy Appeal No.
414 of 1993

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H E A D N O T E

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The words “proved guilty” in article 11(1) of the Bill of Rights are not to be construed narrowly to mean no more than convicted of the offence charged. Rather, the article dealing as it does with crime and punishment, those words are to be construed purposively to mean proved guilty of the acts or omission punishable.

Subsection (4) of section 4 of the Massage Establishments Ordinance, Cap. 266, is inconsistent with article 11(1) of the Bill of Rights and has been Bill repealed by reason of such Bill inconsistency.

IN THE COURT OF APPEAL

Magistracy Appeal No.
414 OF 1993

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BETWEEN

 

THE QUEEN

and

WONG YAN FUK

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Coram : Silke VP, Bokhary JA & Bewley J

Date of hearing : October 29, 1993

Date of decision : October 29, 1993

Date of reasons : November 18, 1993

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J U D G M E N T

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Bokhary JA:

INTRODUCTION

1. On April 24, 1993, before Louis Tong Esq. sitting in the Magistrate’s Court at North Kowloon, the defendant pleaded guilty to one count of managing a unlicensed massage establishment, contrary to section 4(1) of the Massage Establishments Ordinance, Cap. 266. The defendant was represented by counsel under the Duty Lawyer Scheme. Counsel mitigated. The magistrate ordered a probation officer’s report, adjourned sentencing to the 10th of the following month, and admitted the defendant to bail in the meantime.

2. When he came back to court for sentencing on May 10, 1993, the defendant was unrepresented. The probation officer’s report was considered. And the magistrate then sentenced the defendant to six months’ imprisonment.

3. The defendant appealed to the High Court. On June 29, 1993, a judge of that Court, Mayo J, reserved the appeal to this Court, and admitted the defendant to bail pending appeal.

4. At the conclusion of the argument before us on October 29, 1993, we upheld the conviction but reduced the sentence to the extent necessary for it to terminate immediately. We said that we would give our reasons in due course. We now do so.

CONVICTION

5. As to conviction, two arguments were advanced on behalf of the defendant. Under the first argument, it was contended that the defendant’s guilty plea was vitiated so that his conviction based on such plea was likewise vitiated. Under the second argument, it was contended that the entire proceedings were vitiated.

6. For the reasons which follow, neither argument succeeds.

Agreed Facts

7. On the occasion when the defendant pleaded guilty, his then counsel said that the facts set out in the document headed “Brief Facts of Case” prepared by the prosecution were agreed by the defence. The document was not read out in court. On the authority of what we said in R. v. Siu Kwong Wing, Criminal Appeal No. 528 of 1992, April 2, 1993, (unreported) at p.4, it should have been. Nor was the defendant himself invited to confirm or deny what the document said. On the same authority, he should have been.

8. The first argument as to conviction is that those omissions vitiated the defendant’s plea of guilty and his conviction based on such plea. We do not accept that argument. The plea was tendered, as it should of course have been, by the defendant himself. It was unequivocal and complete in itself. And it was not dependent on any facts being agreed. Whether or not to accept a guilty plea was for the magistrate to decide; and, in all the circumstances, the omissions here do not go so far as to vitiate his decision to accept the guilty plea tendered in this case.

9. As it happens, the Brief Facts of Case did not recite any fact which aggravated the offence. Even if it had, that could not, in the circumstances, go to conviction as opposed to sentence. As to sentence, the result of any omission such as the ones here might well be that any such aggravation would have to be ignored.

Interpretation

10. The second argument as to conviction invokes article 11(2)(f) of the Bill of Rights, which includes “the free assistance of an interpreter if he cannot understand or speak the language used in court” among the minimum guarantees to which everyone is, in full equality, entitled in the determination of any criminal charge against him.

11. Of course, quite apart from the Bill of Rights, all accused persons before our courts have always been provided with such assistance. A trial would hardly be worthy of the name otherwise.

12. But the short answer to the argument here is that there is no reason to doubt that the defendant received such assistance. It is not even asserted on his behalf that he had not. All that Mr McCoy for the defendant has done in the present connection is to point out that the magistrate had not made a note of the interpreter’s presence. No doubt, the magistrate considered the fact too routine and obvious to call for a note. Before us, the defendant was represented by three counsel attended by two representatives from their instructing solicitors. And of course no evidence was taken. Nevertheless, very properly and in accordance with invariable practice, an interpreter sat by the dock throughout the proceedings, interpreting the same to the defendant. It was not suggested that anyone would think it necessary to make a note of that fact.

SENTENCE

13. Two sections in particular of the Massage Establishment Ordinance, Cap.266, are to be noted. One is section 4 itself, being the one under which the defendant was convicted and sentenced. The other is section 15.

14. Section 4 reads:-

(1)         Any person who on any occasion operates, keeps, manages, assists in any capacity in the operation of, or assists in the management of, a massage establishment for the operation of which a licence is not in force commits an offence.

(2)         For the avoidance of 'doubt it is hereby declared that it shall not be a defence that a person charged with an offence under subsection (1) did not know that the operation of the massage establishment which is the subject of the offence was not licensed.

(3)         Any person who commits an offence under subsection (1) shall subject to subsection (4) be liable -

(a) on first conviction to a fine of $50,000 and to imprisonment for 6 months;

(b) on a second or subsequent conviction to a fine of $100,000 and to imprisonment for 2 years.

(4)         A person convicted of an offence under subsection (1) shall be liable to the penalty prescribed by subsection (3)(b) if within 3 years prior to the date of his conviction another person was convicted of an offence against that subsection committed in relation to the same place or a part thereof to which his conviction relates unless he satisfies the court that at the time of the offence under subsection (1) for which he is convicted he did not know and had no reason to suspect that another person had been so convicted.”

And section 15 provides, among other things, that:-

“         For the purpose of any proceedings under this Ordinance a document purporting to be a ... certificate signed by a police officer of the rank of Superintendent or above that the person named in the certificate was on the date specified in the certificate convicted of an offence contrary to section 4 and that the offence was committed in relation to any place stated in the certificate shall be admitted in evidence in any proceedings under section 4 on its production and without further proof and, until the contrary is proved, it shall be presumed that -

(i) the person who signed the certificate was a police officer of the rank stated in the certificate; and

(ii) any person named in the certificate was on any date specified in the certificate convicted of an offence contrary to section 4 and that the offence was committed in relation to any place stated in the certificate.”

Other persons’ convictions

15. The prosecution sought to prove - and the magistrate found it proved - that within three years prior to the defendant’s conviction, other persons had been convicted under the same subsection in relation to the same place. No attempt had been made by the defendant to satisfy the magistrate that he did not know and had no reason to suspect that any other person had been so convicted. In the result, the defendant, who had pleaded guilty, and in a case which was by no means extreme, received, upon his first conviction under the section, the maximum term of imprisonment by which an offence under the section is punishable upon a first conviction thereunder.

16. Clearly, he had been dealt with under subsection (4).

The most important question

17. The most important question for our decision in this case is whether subsection (4) has been repealed by the Bill of Rights. Its importance is general. As far as the defendant himself in particular is concerned, his appeal against, sentence must succeed to the extent to which it has succeeded however we answer that question.

Three other reasons

18. Bill repeal apart, there are three other reasons for reducing the defendant’s sentence as we have reduced it.

First reason: simply far too severe

19. First, having regard to the defendant’s own situation and his poor health even though only 30 years of age, and in light of the general level of sentences in circumstances such as those surrounding his offence, his sentence was simply far too severe even assuming that subsection (4) operated against him. On that basis alone, it called for a reduction such as the one which we made.

Second reason: not alerted

20. Secondly, the defendant was before the magistrate on two days. On the second day, he was not legally represented. But at no time did the magistrate alert him to the onus which subsection (4) said was for him to discharge. Therefore, even if the subsection could operate against him, it would not be fair to let its operation remain effective as against him in this instance. On that basis, too, the reduction which we made was, we felt, appropriate.

Third reason: other persons’ convictions not proved

21. Thirdly, the only “evidence” by which the prosecution sought to prove that other persons had been convicted under section 4(1) in relation to the same place took the form of a document put forward as a certificate under section 15. Upon scrutiny, however, the document does not purport to be a certificate by the person who signed it of the facts set out in it. Moreover, the document is so vague in its terms that it is not even acceptably clear on its face that the convictions which it mentions were under section 4(1).

Has subsection (4) been Bill repealed?

22. We revert now to the question: has subsection (4) of section 4 of the Massage Establishments Ordinance, Cap.266, been repealed by the Bill of Rights? If the answer is “yes”, it would, in the circumstances, of itself lead to the reduction in sentence which we have made. So the question is not merely academic even though the appeal against sentence can be disposed of on narrower grounds. The question has been fully argued before us. We are in a position to answer it. The public interest requires an answer. And we proceed now to provide the answer.

Article 11(1)

23. We have already recited subsection (4).

24. Article 11(1) provides that: “Everyone charged with a criminal offence shall have the right to be presumed innocent until proved guilty according to law.”

“Proved guilty”

25. If the expression “proved guilty” used therein were construed to mean no more than convicted of the offence charged, then article 11(2) would not cover provisions like subsection (4). Such a construction would be far too narrow a construction to give a provision entrenching the presumption of innocence.

Meaning

26. We are here concerned with crime and punishment. A purposive approach is called for. “Proved guilty” must mean proved guilty of the acts or omissions punishable.

27. What the offender is liable to be punished for under subsection (4) goes beyond managing an unlicensed massage establishment. It extends to managing such an establishment knowing or having reason to suspect that another or others had been convicted of managing one at the same place within three years of his own conviction.

Furthermore

28. A purposive approach hardly needs further justification. But three more things can, if necessary, be said. First, it is the general position that the facts upon which a conviction is based are for the prosecution to prove, save in so far as they are necessarily encompassed by a guilty plea or verdict or are admitted by the defendant in question. Secondly, there are provisions in article 11, such as the right to an interpreter, which nobody could doubt for one moment extend to the sentencing process. Thirdly, the unsatisfactory nature of a narrow construction is well-illustrated by the fact that the subsection here in question was described by its promoters (in paragraph 3 of the Explanatory Memorandum to the Massage Establishments Bill) as one which “provides that in certain circumstances a person may be deemed to have been previously convicted if within 3 years of his conviction another person had been similarly convicted in relation to the same premises.” Of course, we do not use that to construe the subsection. We merely borrow the same as an unvarnished way of conveying what the subsection is really about.

Article 11(1) applies to subsection (4)

29. For all those reasons, article 11(1) applies to subsection (4).

With the result that ...

30. We come now to the result produced by applying the former to the latter.

The test

31. In deciding whether, in any given instance, legislation has made an exception to the presumption of innocence, the courts will look at substance and reality rather than form. And the question whether the exception is consistent with article 11(1) (and therefore remains extant) or is inconsistent with it (and has therefore been repealed) is answered by reference to the test laid down by the Privy Council in AG v. Lee Kwong-kut [1993] 3 WLR 329.

32. The advice of the Privy Council there reported covers not only Mr Lee Kwong-kut’s appeal but also the separate appeal of a Mr Lo Chak-man. Their appeals were heard together because both involved the test for determining whether any given statutory reverse onus provision survived article 11(1).

Three statements

33. Three statements in the Privy Council’s advice in AG v. Lee Kwong-kut case (supra) delivered by Lord Woolf are of particular importance.

First

34. The first is the one (at p.334) in which the Privy Council referred to R. v. Edwards [1975] QB 27 where Lawton LJ, delivering the judgment of the Court of Appeal in England, examined a line of authority dating from the 17th century, and continued (at pp.39-40) thus:-

“this line of authority establishes that over the centuries the common law, as a result of experience and the need to ensure that justice is done both to the community and to defendants, has evolved an exception to the fundamental rule of our criminal law that the prosecution must prove every element of the offence charged. This exception, like so much else in the common law, was hammered out on the anvil of pleading. It is limited to offences arising under enactments which prohibit the doing of an act save in specified circumstances or by persons of specified classes or with specified qualifications or with the licence or permission of specified authorities. Whenever the prosecution seeks to rely on this exception, the court must construe the enactment under which the charge is laid. If the true construction is that the enactment prohibits the doing of acts, subject to provisoes, exemptions and the like, then the prosecution can rely upon the exception.”

Second

35. Secondly, turning to article 11(1), the Privy Council said (at p.341) that :-

“Some exceptions will be justifiable, others will not. Whether they are justifiable will in the end depend upon whether it remains primarily the responsibility of the prosecution to prove the guilt of an accused to the required standard and whether the exception is reasonably imposed, notwithstanding the importance of maintaining the principle which article 11(1) enshrines. The less significant the departure from the normal principle, the simpler it will be to justify an exception. If the prosecution retains responsibility for proving the essential ingredients of the offence, the less likely it is that an exception will be regarded as unacceptable. In deciding what are the essential ingredients, the language of the relevant statutory provision will be important. However what will be decisive will be the substance and reality of the language creating the offence rather than its form. If the exception requires certain matters to be presumed until the contrary is shown, then it will be difficult to justify that presumption unless, as was pointed out by the United States Supreme Court in Leary v. United States (1969) 23 L.Ed. 2d 57, 82, ‘it can at least be said with substantial assurance that the presumed fact is more likely than not to flow from the proved fact on which it is made to depend.’”

36. As can be seen, the question is twofold. Whether an exception is justifiable is not confined to “whether it remains primarily the responsibility of the prosecution to prove the guilt of an accused to the required standard”. It is also necessary to decide “whether the exception is reasonably imposed, notwithstanding the importance of maintaining the principle which article 11(1) enshrines.”

Third

37. Thirdly, the Privy Council said this (at p.344):-

“The application of a test along the lines suggested by Lawton L.J. in Reg. v. Edwards [1975] Q.B. 27, 39-40, in the manner already indicated will often be all that is required. The court can ask itself whether, under the provision in question, the prosecution is required to prove the important elements of the offence; while the defendant is reasonably given the burden of establishing a proviso or an exemption or the like of the type indicated by Lawton L.J. If this is the situation article 11(1) is not contravened.

In a case where there is real difficulty, where the case is close to the borderline, regard can be had to the approach now developed by the Canadian courts in respect of section 1 of their Charter. However in doing this the tests which have been identified in Canada do not need to be applied rigidly or cumulatively, nor need the results achieved be regarded as conclusive. They should be treated as providing useful general guidance in a case of difficulty. This is particularly true in relation to what was said in Reg. v. Chaulk, 62 C.C.C. (3d) 193, 216-217, about proportionality since it is the need to balance the interests of the individual and society which are at the heart of the justification of an exception to the general rule.”

38. As can also be seen, the application of a test along the lines suggested by Lawton LJ in R. v. Edwards (supra) at pp.39-40 has not been laid down by the Privy Council as what will invariably be all that is required. Rather, it has been laid down as what will “often” be all that is required.

Mr Lee’s appeal and Mr Lo’s appeal

39. Mr Lee was charged with unlawful possession, contrary to section 30 of the Summary Offences Ordinance, Cap.228, which read:-

“Any person who is brought before a magistrate charged with having in his possession or conveying in any manner anything which may be reasonably suspected of having been stolen or unlawfully obtained, and who does not give an account, to the satisfaction of the magistrate, how he came by the same, shall be liable to a fine of $1,000 or to imprisonment for three months.”

40. Mr Lo was charged with assisting another to retain the benefit of drug trafficking, contrary to section 25(1) of the Drug Trafficking (Recovery of Proceeds) Ordinance, Cap.405. The relevant provisions of section 25 recited by the Privy Council are:-

“(1) Subject to subsection (3), a person who enters into or is otherwise concerned in an arrangement whereby - (a) the retention or control by or on behalf of another (‘the relevant person’) of the relevant person’s proceeds of drug trafficking is facilitated (whether by concealment, removal from the jurisdiction, transfer to nominees or otherwise); or (b) the relevant person’s proceeds of drug trafficking - (i) are used to secure that funds are placed at the relevant person’s disposal; or (ii) are used for the relevant person’s benefit to acquire property by way of investment, knowing or having reasonable grounds to believe that the relevant person is a person who carries on or has carried on drug trafficking or has benefited from drug trafficking, commits an offence. (2) In this section, references to any person’s proceeds of drug trafficking include a reference to any property which in whole or in part directly or indirectly represented in his hands his proceeds of drug trafficking. (3) Where a person discloses to an authorised officer a suspicion or belief that any funds or investments are derived from or used in connection with drug trafficking or any matter on which such a suspicion or belief is based - (a) if he does any act in contravention of subsection (1) and the disclosure relates to the arrangement concerned, he does not commit an offence under this section if the disclosure is made in accordance with this paragraph, that is - (i) it is made before he does the act concerned, being an act done with the consent of the authorised officer; or (ii)it is made after he does the act, but is made on his initiative and as soon as it is reasonable for him to make it; (b) the disclosure shall not be treated as a breach of any restriction upon the disclosure of information imposed by contract or by rules of professional conduct; and (c)         he shall not be liable in damages for any loss arising out of - (i) the disclosure; (ii) any act done or omitted to be done in relation to the funds or investments in consequence of the disclosure. (4) In proceedings against a person for an offence under this section, it is a defence to prove - (a) that he did not know or suspect that the arrangement related to any person’s proceeds of drug trafficking; or (b) that he did not know or suspect that by the arrangement the retention or control by or on behalf of the relevant person of any property was facilitated or, as the case may be, that by the arrangement any property was used as mentioned in subsection (1); or (c) that -(i) he intended to disclose to an authorised officer such a suspicion, belief or matter as is mentioned in subsection (3) in relation to the arrangement; but (ii) there is reasonable excuse for his failure to make disclosure in accordance with subsection (3)(a). (5) A person who commits an offence under this section is liable - (a) on conviction upon indictment to a fine of $5,000,000 and to imprisonment for 14 years; ...”

Section 30 repealed

41. Upholding the decision of this Court, the Privy Council held that section 30 had been repealed, saying this (at p.344):-

“In the case of [Mr Lee] the substantive effect of the statutory provision is to place the onus on the defence to establish that he can give an explanation as to his innocent possession of the property. That is the most significant element of the offence. It reduces the burden on the prosecution to proving possession by the defendant and facts from which a reasonable suspicion can be inferred that the property has been stolen or obtained unlawfully, matters which are likely to be a formality in the majority of cases. It therefore contravenes article 11(1) of the Hong Kong Bill in a manner which the Attorney-General could not justify.”

Section 25 not repealed

42. Reversing the decision of Gall J, the Privy Council held that section 25 had not been repealed, saying (at pp.344-345) that :-

“This is by contrast to the situation in relation to [Mr Lo’s] case and section 25. It is not important whether section 25(4) is regarded as creating a defence or an exception if it does not constitute part of the substance of the offence. The substance of the offence is contained in section 25(1) as to which the onus is on the prosecution. Unless the prosecution can prove that the defendant has been involved in a transaction involving the relevant person’s proceeds of drug trafficking (within the wide terms of section 25(2)) as set out in section 25(1) and that at that time he had the necessary knowledge or had reasonable grounds to believe the specified facts the defendant is entitled to be acquitted. However once the defendant knows or has reasonable grounds to believe that the relevant person is a person who carries on or has carried out drug trafficking or has benefited from drug trafficking, then the defendant knows that he is at risk of committing an offence and that he can only safely deal with that person if he is in a position to satisfy section 25(3) or (4). If the defendant chooses not to take the precautionary action under section 25(3) then he knows he can only safely proceed by relying on section 25(4). To be able to achieve this the defendant will have to take any steps necessary to ensure that he does not have the knowledge or suspicion referred to. An example would be, by insisting on seeing documents establishing the untainted source of the funds. If the defendant has done this then he will be aware of the relevant facts and it is reasonable that he should be required to establish them. It would be extremely difficult, if not virtually impossible, for the prosecution to fulfil the burden of proving that the defendant had not taken those steps. In the context of the war against drug trafficking, for a defendant to bear that onus under section 25(4) is manifestly reasonable and clearly does not offend article 11(1). Indeed section 30 and section 25 can be regarded as examples of situations close to the opposite ends of the spectrum of what does and does not contravene article 11(1).”

Subsection (4)’s position in the spectrum

43. As to subsection (4)’s position in that spectrum, we put it at the section 30 end.

The twofold question again

44. We put it there by reference to both limbs of the twofold question which we identified earlier on.

First limb

45. Under the first limb, we begin by contrasting sections 25 and 30. The “substantive effect of” section 25 (as the Privy Council points out at p.344) “is to place the onus of the defence” to disprove “the most significant element of the offence.” But (as the Privy Council points out at the same page) the “substance of the offence” under section 25 is one “as to which the onus is on the prosecution.”

46. What about subsection (4)? It involves making a first offender liable to repeat offender punishment if another had similarly offended before him and he knew or had reason to suspect that. Clearly, the element of aggravation laying him open to such enhanced punishment is knowledge or reason for suspicion. He is, after all, being equated with a repeat offender even though he is himself only a first offender. It is hardly to be supposed that the Legislature meant for him, a first offender in fact, to be liable in law to be punished as if he were a repeat offender if he did not know or even have reason to suspect that anybody had similarly offended before. Such knowledge or reason for suspicion is the “most significant element” of the subsection or, put another way, its “substance”. And the subsection places the onus of disproving that element on the defence.

Second limb

47. Coming to the second limb, we say this. We do not underestimate the authorities’ task in dealing with the offences against property at which section 30 was aimed. Nor, as far as subsection (4) is concerned, do we underestimate their task in dealing with unlicensed massage establishments. That said, we doubt that anyone would suggest that either task begins to approach the “war against drug trafficking” to which the Privy Council referred (at p.345) in upholding section 25. And as to reasonableness and proportionality, this can be added. It is hardly unknown for the prosecution to have to prove even knowledge (by reference to what is the only reasonable inference to be drawn as to the accused person’s state of mind in all the circumstances). And reason for suspicion short of actual knowledge is of course less difficult for the prosecution to prove than actual knowledge. It can be seen - and should be remembered - that subsection (4) is certainly at least odd and, as far as counsel’s researches go, unique.

Result

48. In our judgment, subsection (4) of section 4 of the Massage Establishments Ordinance, Cap.266, is inconsistent with article 11(1) of the Bill of Rights and has been repealed by reason of such inconsistency.

CONCLUSION

49. For the foregoing reasons, we: (i) dismissed the appeal against conviction; but (ii) allowed the appeal against sentence, reducing the defendant's sentence so as to bring about its immediate termination, doing that on a number of bases, including the generally important one that subsection (4) of section 4 of the Massage Establishments Ordinance, Cap.266, is inconsistent with article 11(1) of the Bill of Rights and has therefore been Bill repealed by reason of such Bill inconsistency.

(William Silke)
Vice President

(K. Bokhary)
Justice of Appeal

(E. de B. Bewley)
Judge of the High Court

Mr G.J.X. McCoy, Mr P.Y. Lo & Mr Victor Luk (instructed by the Director of Legal Aid) for the appellant

Mr S.R. Bailey (of the Attorney General's Chambers) for the Crown