China Nonferrous Metals (Hong Kong) Finance Co Ltd (in Liquidation) and Another v. South-east Asia Investment Holding Company Ltd and Another

Case No.CACV 253/2012
Court
Court of Appeal
Date14 Nov 2013
Judge
Case Document
100%

CACV 253/2012

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

CIVIL APPEAL NO. 253 OF 2012

(On Appeal from HCCL NO. 20 of 2002)

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BETWEEN

CHINA NONFERROUS METALS (HONG KONG) FINANCE COMPANY LIMITED (In Liquidation) 1st Plaintiff
CHINA NONFERROUS METALS GROUP (HONG KONG) LIMITED (In Liquidation) 2nd Plaintiff
and
SOUTH-EAST ASIA INVESTMENT HOLDING COMPANY LIMITED 1st Defendant
NG HON LEUNG 2nd Defendant

________________________

Before : Hon Cheung, Kwan JJA and Au J in Court
Date of Hearing : 14 November 2013
Date of Decision : 14 November 2013
Date of Reasons for Decision : 18 November 2013

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REASONS FOR DECISION

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1.The defendants applied for leave to appeal to the Court of Final Appeal against our judgment dated 16 May 2013.

2.The defendants contended that the following question of great general or public importance ought to be considered by the Court of Final Appeal, namely,

‘ Whether a victim of inordinate and inexcusable delay amounting to an abuse of process is required to prove prejudice before the Court will dismiss or strike out the defaulting party’s claim.’

3.The defendants also relied on the ‘or otherwise’ limb.

4.We refused leave for the following reasons :

1) Our judgment was fact specific and dealt with an appeal from a discretionary remedy.

2) The lower court’s judgment on the issue of abuse should be, as we have pointed out in our judgment, properly considered in its context and the Judge had properly taken prejudice into account.

3) The issue of abuse was at large at the hearing before this Court and the discussion on prejudice was not predicated on the basis that abuse had already been established.

4) The issue of who carried the burden of proof on prejudice is a non-starter since in situations where the abuse involves delay and prejudice to the defendant, the defendant’s burden in establishing abuse will necessarily include the burden of establishing prejudice as well.

5) As it is, the question as framed is not engaged.

6) In so far as our judgment dealt with prejudice on the basis that the Judge had found abuse by reason of the plaintiff not intending to bring the present case to conclusion, we are still of the opinion that the question as framed is not engaged because of, first, paragraph 75(7) of the judgment of Wing Fai Construction Co. Ltd (in compulsory Liquidation) v. Yip Kwong Robert & Ors [2012] 1 HKLRD 589 (cited at paragraph 17(3) of our judgment) on the requirement of prejudice and, second, it was not the position of the defendants (as represented by their then counsel) that it was not necessary to consider prejudice at all after abuse had been found. 

7) In any event, we are of the view that, the defendants have no real prospect of success in respect of the question as framed.

8) Neither is the ‘or otherwise’ ground satisfied in this case.

5.Accordingly the application was refused with costs to the plaintiffs together with certificate for two counsel.

(PETER CHEUNG) (SUSAN KWAN) (THOMAS AU)
Justice of Appeal Justice of Appeal Judge of the Court of First Instance

Mr Chan Chi Hung SC and Mr Jeffrey Tam, instructed by Mayer Brown JSM, for the 1st and 2nd plaintiffs

Mr Daniel Fung SC and Mr Gary Lam, instructed by Ng & Partners, for the 1st and 2nd defendants