Hhml v. Ryd
Read the full judgment text of HCMC 7/2011 on BabelCite. This High Court CFI judgment was delivered on 9 October 2012 before Hon Poon J.
Matrimonial Causes – Custody – Care and Control – Ancillary Relief – Maintenance Pending Suit – Contempt – Asset Division – Best Interests of Children – Sole Custody – Equal Division of Assets – Security for Maintenance – Husband in contempt for non-payment of MPS refused to be heard on removal application – Joint custody impracticable due to separation and breakdown of communication – Husband manifestly unfit due to conduct placing own interests over Boys' best interests – Equal division of family assets valued at HK$31,020,000 – Periodical payments and security for maintenance awarded – Wife granted sole custody and care and control of three boys with access to Husband
Legal issues: Whether Husband in contempt should be heard · Custody and care and control · Ancillary relief
Outcome: Wife's applications allowed; Husband's removal application dismissed
Cited by 2 cases · Cites 1 case
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HCMC 7/2011 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE MATRIMONIAL CAUSES NO 7 OF 2011 (TRANSFERRED FROM FCMC 10543 OF 2011) ________________________
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____________________________________ REASONS FOR JUDGMENT ____________________________________ 1.Before the court were :
A. BACKGROUND 2.The background circumstances have been set out in my decision dated 11 May 2012 allowing the Wife’s application for maintenance pending suit (“MPS”) and the decision of Deputy Judge Lok dated 5 June 2012 refusing the Husband’s application for stay of the proceedings in favour of Spain. (The Spanish court has already stayed the divorce proceedings commenced by the Husband there in September 2012.) For present purposes, they are recapitulated as follows. 3.Both the Husband and the Wife are Spaniards, now aged 45 and 47 respectively. They were married in Madrid, Spain on 1 December 1995 after signing a separate assets agreement (“the Agreement”). A was born in January 1997 and B, May 2001. Shortly thereafter, the family moved to Hong Kong. C was then born in Hong Kong in July 2002. All the members of the family have acquired the status as Hong Kong permanent residents. 4.The Husband had been working in the field of information and technology. In about June 2002, his employer (“the Employer”) sent him to Hong Kong as an expatriate. He had been working in that capacity continuously until he left Hong Kong in January 2012. At all material times, he had had a rather lucrative employment package. Indeed, the Husband described it as a very generous package. For 2011, his annual income was €450,000 on the Wife’s case or €229,281 plus a discretional bonus of €150,000 on his case. He also had a housing allowance of HK$300,000 per month, which enabled the family to live in a detached house in Stanley as the matrimonial home. With his income, the family had at all material times enjoyed a very comfortable life style. 5.In January 2012, the Employer repatriated the Husband back to Spain. In September 2012, he left the Employer. His actual current employment status is unknown. But according to the Wife, he will soon attend some job interviews in Miami, the USA. 6.The Wife obtained her degree in economics and MBA in Spain. In 1993, she completed post‑graduate courses in marketing and customer satisfaction run by two prestigious universities in the USA. When she met the Husband in 1991, she was employed as a marketing executive in the largest telecommunication company in Spain with a decent income. In 1999, two years after she gave birth to A, she reduced her working hours in order to take care of the family. After coming to Hong Kong, she had become a full time housewife and primary carer of the Boys. She had also become wholly dependent on the Husband financially. 7.Since early this year, she has resumed working as an estate agent with a local agency, earning a basic salary of HK$15,000 with an estimated monthly commission of about HK$10,000. She has to do so because after his return to Spain, the Husband has persistently failed to pay her a penny for interim maintenance, including the MPS that I ordered on 11 May 2012. 8.At the commencement of these proceedings, A was attending a boarding school in England (“the School”), doing his Sixth Form there. However, in about July or August 2012, the Husband unilaterally, and without the Wife’s consent, withdrew A from the School and placed him in a local school in Spain. B and C are attending an international school in Hong Kong (“the International School”). 9.In June 2012, the Husband’s former solicitors ceased to act for him. Thereafter, he has taken no further steps in these proceedings. He has not filed any further evidence to support his relocation application or to oppose the Wife’s two applications. He was even absent at the substantive hearing on 9 October 2012. B. CUSTODY, CARE AND CONTROL AND REMOVAL 10.The Wife’s application for sole custody, care and control of the Boys and the Husband’s removal application can be conveniently dealt with together. Although the Husband had not formally applied for custody, care and control in his removal application, he did indicate in the list of issues filed in March 2012 that he sought sole custody, care and control of the Boys. B1. Should the Husband be heard? 11.Ms Rattigan, counsel for the Wife, took the preliminary objection to the Husband being heard on his application because, having failed to comply with the MPS order, he is in contempt. She relied on the well known case of the English Court of Appeal in Hadkinson v Hadkinson [1952] 2 All ER 567. 12.Refusing to hear a party is a very serious matter, which can only be justified by strong and cogent reasons. So although the Husband is absent, I cannot accept Ms Rattigan’s submission lightly. I still need to be satisfied that it is a proper case to exercise my discretion to refuse to entertain the Husband’s application in limine. If I disagree with her, then I will consider it on the materials before the court, although I will have to do the best that I can without the benefit of his further input in these proceedings. 13.This brings me to a closer reading of Hadkinson v Hadkinson. Romer LJ stated the general rule at p.569C-F :
14.His Lordship then described the exceptions to the general rule at p.570A-B :
I pause to note that none of these exceptions arises here. 15.In exercising the discretion to refuse to hear a party in contempt, the court is guided by what Denning LJ (as he then was) said in Hadkinson v Hadkinson. There after reviewing the authorities, his Lordship gave this reminder at pp.574H-575C :
16.Here, by the MPS order, I ordered the Husband to pay the school fees for B and C for the first 6 months of 2012, monthly MPS of HK$80,000 and monthly provision for legal costs of HK$50,000 and removal expenses of HK$10,800. By failing to pay the MPS as ordered, the Husband is no doubt in contempt of court. So far he has not offered any explanation either. 17.In my view, his non-compliance with the MPS order is a deliberate tactical move, calculated to achieve two illegitimate purposes. First, he wants to harm the Wife financially when these proceedings are pending, which also incidentally put B and C at peril. Her present income and savings are hardly sufficient to support herself and the two boys. (A is now living in Spain, presumably supported by the Husband.) The Wife has to live on the generosity of her friends, one of whom has kindly provided rent-free accommodation until her financial situation improves. Second, he wants to force her to return to Spain to fight the divorce there, in total disregard of Deputy Judge Lok’s previous order of refusing his application to stay. His conduct is reprehensible indeed. He is now in Spain, well beyond this court’s jurisdiction and it is most unlikely that he would ever return to Hong Kong again. Any enforcement of the MPS order is extremely difficult if not impossible. 18.In these circumstances, justice demands that the Husband should not be heard until he purges his contempt. I refuse to entertain his removal application, which is dismissed. B2. The Wife should be given sole custody care and control 19.What remains is the Wife’s application for sole custody, care and control. 20.Her application is brought under section 19 of the Matrimonial Proceedings and Property Ordinance, Cap 192 (“MPPO”). In determining her application, the court bears in mind the best interest of the Boys as the first and paramount consideration : section 3(1) of the Guardianship of Minors Ordinance, Cap 13, applied by virtue of section 48C of the Matrimonial Causes Ordinance, Cap 179. 21.There is a wealth of case law on how custody care and control in the context of a divorce should be approached. For present purposes, I only need to refer to the recent decision of the Court of Appeal in PD v KWW [2010] 4 HKLRD 191, where Hartmann JA admirably explained the underlying concepts of custody and care and control in these terms :
22.Later, his Lordship laid down the proper approach to joint custody thus :
23.When applying these general principles to the present case, the evidence overwhelmingly shows that the Wife should be given sole custody care and control of the Boys. 24.Joint custody is definitely inappropriate. For one thing, in the foreseeable future, the couple will live in Hong Kong and Spain separately. It is rather impracticable to give them joint custody. More importantly, there is a total breakdown in communication between them. Realistically, until mutual trust and confidence between them is restored, they cannot cooperate meaningfully on the upbringing of and welfare arrangements for the Boys. 25.The Boys and their father have a good relationship. In particular, they enjoy his company very much when he takes them to holidays, including skiing holidays in Europe. A had previously indicated that he wished to stay with the father. B and C said they could stay with either of the parents. 26.However, in my view, the Husband is manifestly unfit to be granted custody care and control of the Boys. I do not think he can properly discharge the parental responsibilities entrusted to him. I say so for two principal reasons. 27.First, he is liable to and indeed has placed his own interests in opposing the Wife’s claims in these proceedings over and above the best interests of the Boys. The deliberate non-compliance of the MPS order is a vivid example. As rightly submitted by Ms Rattigan, the Husband’s non-payment of any maintenance or school fees for B and C is shocking. Another recent incident is his unilateral withdrawal of A from the School to a local school in Spain. It is wholly contrary to the parents’ joint wish, as the undisputed evidence shows, that A should continue his education within the English system. It is no doubt another tactical move by the Husband to create yet a further obstacle hindering the Wife in pursuing her claims. I do not think a responsible father would so conduct himself. 28.Second, he has not even bothered to present any future care plans or arrangements for the Boys for my consideration. I simply do not know what he has in mind or what he intends to do. The absence of such information is worrying because, according to the Wife’s undisputed evidence, he may well have to work in the USA in the near future. How is he going to discharge his parental duties with his busy schedule away from home? He has provided no glue whatsoever. 29.There is an additional reason why the Husband should not be given sole custody care and control of B and C. If that were to happen, effectively, they would have to be relocated to Spain. I do not consider uprooting them from Hong Kong, a stable and familiar environment in which they have been living since infancy and where they have established emotional and social ties, is desirable. 30.As already noted, the Wife has traditionally been the primary carer of the Boys before the breakdown of the marriage. She is a caring and loving mother. The Boys have a good relationship with her. Driven by circumstances, she is now working full time. But she is assisted by a domestic helper in running chores and child care. She can definitely continue to take care of the Boys to the best of her ability. 31.Turning to the educational needs of the Boys, which is an important factor, the Wife’s evidence, which I accept, is that the English system is more preferable to the Spanish one. Quality of the education service that the two systems can offer is one thing. Another reason is that the Boys would have to spend some time to brush up their Spanish if they were to attend schools there. For A, it had all along been the parents’ joint wish, at least before the Husband unilaterally withdrew him from the School, that he should read his university degree in England. (Thanks to the understanding of the School, a place has been reserved for A despite the withdrawal. So he can return and resume his studies there.) In my view, it would definitely serve the Boys much better if A is to continue his education in England and B and C in Hong Kong. 32.When all the circumstances are viewed in the round, I am firmly of the view that the Wife should be given sole custody care and control of the Boys. 33.For completeness, I need to deal with two additional points shortly. 34.First, the Wife is fully aware of A’s current wish to stay in Spain. She said she would discuss with A about his future education plan. As I understand her, she would respect his wish and would not do anything against it. That must be right. After all, A is now 15. His view should be respected. 35.Second, I had called for two social welfare reports in January and March 2012. According to the social welfare officer, determining who should be given custody care and control is a difficult decision and she would leave the matter to the court. I think her view has since been overtaken by subsequent events, in particular, the Husband’s conduct. On the evidence before me, I have no difficulty in deciding the question of custody care and control in the way as I did. 36.The Wife accepts, and rightly so in my view, that the Husband should be given holiday access and daily access by phone or Skype to the Boys. 37.I next turn to the Wife’s application for ancillary relief. C. ANCILLARY RELIEF 38.The application is governed by section 7 of the MPPO. The approach to a section 7 exercise is now settled since the Court of Final Appeal’s judgment in LKW v DD (2010) 13 HKFCAR 537, per Ribeiro PJ at paras71-132. In short, the exercise involves five steps :
39.I first identify the financial resources of the Husband and the Wife. 40.The only piece of financial information that the Husband has disclosed is a schedule of property exhibited to his affidavit filed in September 2011 (“the Schedule”), which covers various landed properties in Spain and one in Macau. The total value is stated to be HK$31,020,000. The Wife does not accept it to be all what the Husband owns but is prepared to adopt it for present purposes. As said, the Husband’s current employment status is unknown. But there is nothing in the evidence to suggest that his earning capacity would be impeded one way or the other. 41.As already noted, the Wife is now working as an estate agent, earning a basic salary of HK$15,000 with an average commission of about HK$10,000 per month. She only has savings of less than HK$25,000. 42.On the available evidence before me, the family assets that are available for distribution is the list of property as per the Schedule, valued at HK$31,020,000. 43.I then come to the financial needs of the parties. There is no evidence to suggest that the Husband with his earning capacity cannot meet his own reasonable financial needs. On the other hand, the Wife has listed her financial needs in the latest Form E filed on 8 October 2012 to be HK$102,900. With her income, she still needs about HK$80,000 every month to meet her and the Boys’ reasonable financial needs. 44.On distribution, the Wife seeks an equal division of the sum of HK$31,020,000. I agree. 45.This has been a long marriage where the assets have been generated within the marriage. Fairness dictates that they should be shared on an equal basis. The Agreement does not alter the position. For the circumstances have materially changed since then. 46.The Agreement was made at a time when both the Husband and the Wife were earning. In fact, the Wife had a good job and good career prospect. (The Husband alleged that at the time when the Agreement was made, the Wife was expecting to receive a big inheritance from her uncle. That is denied by her. In any event her undisputed evidence is that she never received the inheritance any way.) Four years after marriage, the Wife gave up her job and career to become a full time housewife. Her contribution to the family allowed the Husband to pursue his career and to invest his income into the family assets. It would be most unfair if the Agreement were to apply, depriving the Wife of her share in the family assets, in total disregard to the material change of circumstances and her valuable contribution to the family over the years. 47.I further agree with Ms Rattigan that even with the equal division of the family assets, the Wife still needs a monthly sum of HK$80,000. Periodical payments are in order. 48.Finally, I agree with Ms Rattigan’s submission that given the Husband’s failure to comply with the MPS order, he has evinced an intention of resorting to unscrupulous means in order to defeat the Wife’s claim for ancillary relief. I should exercise my discretion under section 4(1)(b) of the MPPO that the Wife be given a security for all maintenance, school fees and costs against the Husband’s 50% share in the family assets. D. DISPOSITIONS 49.For the above reasons, I made the following order on the Wife’s applications :
50.Finally, I awarded her costs to be summarily assessed.
Ms Mairead Rattigan, instructed by Oldham, Li & Nie, for the petitioner RYD, the respondent, absent | ||||||||||||||||||
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