Read the full judgment text of CACV 152/2000 on BabelCite. This Court of Appeal judgment was delivered on 11 July 2000 before Leong JA, Rogers JA.
Civil procedure – service of writ on company – registered office – Companies Ordinance (Cap. 32) s.356 – Rules of the High Court Order 10 and Order 65 rule 3 – derivative action to set aside default judgment – plaintiff and 3rd defendant 50/50 shareholders and directors of 1st defendant – 1st defendant owed approximately HK$996,178 to 2nd defendant (a company owned by 3rd defendant) – plaintiff paid HK$500,000 plus HK$80,000 interest pursuant to earlier deed-related proceedings – 3rd defendant caused 2nd defendant to bring second action for the balance – writ served at registered office of 1st defendant which plaintiff and his wife had vacated – 3rd defendant aware of vacation – no defence filed – default judgment entered – plaintiff brought derivative action alleging fraud and irregularity of service – whether service of writ at registered office was irregular entitling 1st defendant to set aside default judgment – held, no – s.356 of Companies Ordinance and supporting rules permit service at registered office without any further requirement – United Venture Navigation Co. Ltd v. Shum Yuen Nim [1991] 2 HKC 73 followed – no real defence shown by 1st defendant – whether paragraphs 13-17 of amended statement of claim seeking reimbursement of about HK$853,629.95 in 1st defendant expenses borne by plaintiff should be struck out – held, yes – damage is the root of the cause of action and, as the expenses were legitimate expenses of the 1st defendant, the plaintiff would be entitled to reimbursement by the 1st defendant itself, with no actionable loss against the 3rd defendant – appeal by 2nd and 3rd defendants allowed – cross-appeal by plaintiff refused.
Legal issues: Validity of service of writ on company at registered office · Striking out of claim for reimbursement of company's expenses borne by plaintiff
Outcome: Appeal by the 2nd and 3rd defendants allowed; cross-appeal by the plaintiff refused
Cites 1 case