We recently celebrated the success in multiple sizable property projects handled by our Conveyancing Department, which showcased hard work and dedication throughout.
We act for the Respondent and have successfully appealed against a default judgment of the Lands Tribunal (the “Default Judgment”) and the order of the Lands Tribunal refusing to set aside the Default Judgment (the “Order”). In this case the Applicant obtained the Default Judgment in reliance of the alleged termination of a tenancy-at-will between the Applicant and the Respondent in 2018 but failed to mention about a notice to quit issued to the Respondent in 2008 upon applying for the Default Judgment. The earlier notice should have been pleaded upon application by the Applicant and the Lands Tribunal ought to have considered the said notice when granting the Default Judgment and dismissing the Respondent’s application to set aside the Default Judgment. On appeal, the Court of Appeal decided that the grant of the Default Judgment in the circumstances was an error of law and set aside the Default Judgment, the Order together with the writ of possession issued on the basis of the Default Judgment.
The case was handled by our associate solicitor Miss Koey Wong and our trainee solicitor Miss Shirley Yu under the supervision of our partner Mr Tommy Tam.
We acted for a company listed on the Main Board of Hong Kong (the “Company”), principally engaged in the dealership of luxury goods in Mainland China, in the completion of issue of new shares under the General Mandate.
The process was remarkably expeditious, taking less than two weeks from subscription agreements dated 19 July 2024 (after trading hours) to completion of issue of new shares on 31 July 2024.
We are glad that our round-the-clock efforts, swift responses to and smooth communications with the financial advisors, Mainland working parties and the Stock Exchange of Hong Kong have altogether facilitated the Company to reach this milestone success.
Our team in charge is led by Partner Mr. Roy Leung and assisted by Senior Associate Mr. Olson Lai, Paralegal (Pending Admission) Ms. Sherrie Ma and Trainee Solicitor Mr. Manson Chan.
The Partners of Sit, Fung, Kwong & Shum announce that Mr. Liu Pak Hong, Mathew has been admitted as Partner of the firm from 1 August 2024. Mathew joined the firm and was qualified as a solicitor in 2017. Mathew specializes in dispute resolution, with experiences in litigations of various natures, e.g., shareholders’ and board room disputes, insolvency and restructuring, land, family, criminal and disciplinary matters. He played an important role in a high-profile contentious case involving administration of a mega estate. With great delight, the Partners congratulate Mathew and welcome him to the partnership.
In late July, our China Practice Group headed by Senior Partner Mr. Peter Sit (GBA Lawyer), Partner Mr. Roy Leung (GBA Lawyer) and Partner Ms. Jenny Wong (GBA Lawyer), along with Senior Associate Ms. Wai Yin Chung and Associate Ms. Carrie Li welcomed a delegation of 22 mainland lawyers from 19 law firms across 6 cities in the Greater Bay Area (“GBA”) to visit our firm with huge enthusiasm.
During the visit, our partners provided a comprehensive overview of the firm’s history of development and our practice areas, highlighting civil and commercial legal issues in both Hong Kong and Mainland China, cross-border legal services, legal support for clients venturing abroad, litigation and arbitration, as well as advancements in intellectual property law. We introduced the new opportunities for the Hong Kong legal profession arising from the GBA initiatives. Our GBA lawyers are committed to fostering interflow and collaboration with our peer professionals in the Mainland China for providing legal expertise to clients in both places.
The delegates also shared experience and insights about the professional practice in Mainland China. The visit led to a lively and extensive discussion about further strengthening exchanges between the two jurisdictions. It’s well recognised by all participants that the discussion not only enhanced mutual understandings but also established a solid foundation for solid collaboration in the future.
As one of the first batch of Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) lawyers, our Partner Mr. Roy Leung attended the first ever course titled “Practical Legal Training for GBA Lawyers” co-organized by the Supreme People’s Court and the Ministry of Justice of the People’s Republic China at the National Judges College (Guangdong) in this mid-July.
This course was delivered by distinguished legal practitioners, including presiding judges of the People’s Courts, mainland legal experts, and specialists from arbitration and commercial mediation institutions. The course features important topics on civil and commercial litigation, arbitration, and mediation, including:
- “Judicial Thinking in Foreign-Related Civil and Commercial Cases Involving Hong Kong and Macao”
- “Rules of Evidence in Civil Litigation”
- “Practical Conduct in Litigation Services”
- “Practical Issues in Representing Civil and Commercial Litigation”
- “Enhancing Corporate Legal Systems to Support High-Quality Development: An Overview of the Sixth Amendment to the Company Law”
- “The Integration and Development of Arbitration Practices in the GBA: Issues and Recommendations”
- “Mediation Systems and Practices in the GBA”
The course is highly informative of extensive practical discussions, which will surely benefit our China Practice team inproviding clients with sound legal advice and practical solutions for handling issues arising in civil and commercial matters in China.
On 12 July 2024, we are delighted to receive a visit of honourable guests from Yingke Law Firm Guangzhou Office. We had valuable exchange on legal services and developments in Mainland China and Hong Kong.
We are acting for a reputable entrepreneur in Mainland and successfully obtained an order from the High Court of Hong Kong to set aside a Bankruptcy Statutory Demand issued against our client by a prominent venture capital fund with costs awarded in favour of our client.
Upon being instructed by our client who had received the Bankruptcy Statutory Demand which concerned an alleged debt of almost USD13 million arising from a share sale and purchase agreement and may lead to her bankruptcy, we made urgent efforts to make an application to the Court to set aside the subject Bankruptcy Statutory Demand including preparing all necessary papers on an urgent basis as well as liaising with Senior Counsel and Counsel. Right at the first court hearing, we successfully resisted the Petitioner’s attempt to seek a Bankruptcy Order summarily, and made out a cogent case for substantive arguments. In the substantive hearing of the said application this week, we ran multiple lines of arguments and meticulously articulated to the Court that the subject Bankruptcy Statutory Demand should be set aside on three grounds, namely (1) defence of non est factum, (2) that the subject Bankruptcy Statutory Demand was not founded upon a valid liquidated debt as parties’ obligation under the agreement are dependent, and (3) that parties should resort to arbitration pursuant to the arbitration clause in the agreement. The Court agreed with the forceful submissions put forward on behalf of our client that the alleged debt relied on by the subject Bankruptcy Statutory Demand is subject to a bona fide dispute on substantial grounds, and therefore set aside the subject Bankruptcy Statutory Demand pursuant to r. 48(5)(b) of the Bankruptcy Rules (Cap 6A).
The aforesaid services are handled by our Senior Partner Mr. Peter Sit and our Litigation Partner Mr. Roy Leung, assisted by Senior Associate Ms. Theresa Law and Trainee Solicitor Ms. Shirley Yu. Lawyers of our Litigation Department are well versed in the law and procedures of insolvency proceedings, including personal bankruptcy and company winding-up matters, and are determined to assist our clients in tackling legal problems in urgent situations.
Our Partners Mr. Roy Leung and Ms. Jenny Wong have been leading the litigation team of our firm since the end of 2020, representing China CITIC Bank Corporation Limited Tianjin Branch, China CITIC Bank International (China) Limited Beijing Branch, and China CITIC Bank International Limited (collectively “CITIC”) in multiple litigations before the High Court of Hong Kong involving an HK$8 billion syndicated loan and related mortgages and guarantees with tycoon Mr. Pan Sutong and his controlled company Silver Starlight Limited, including proceedings to resist injunction application and the corresponding appeal (Case Nos. HCMP222/2021 and CACV301/2021), his application to set aside statutory demand (Case No. HCSD3/2021), company winding-up petition (Case No. HCCW295/2021), and bankruptcy petition against him personally (Case No. HCB6548/2021).
Amid rounds of highly contested legal battles, our firm had already successfully obtained judgments in favour of CITIC at the High Court and Court of Appeal hearings. Subsequently, we proceeded to file bankruptcy and winding-up petitions against Pan Sutong and Silver Starlight Limited swiftly. The series of proceedings moved at a cracking pace. Even after the heard-together hearing for bankruptcy petition and winding-up petition, Pan Sutong and Silver Starlight Limited still fought relentlessly and made last-minute attempt to seek postponement for the determination of the petitions, which were all dismissed by the Honourable Madam Justice Linda Chan of the High Court. Ultimately, the Court ruled in our favour and granted bankruptcy order against Pan Sutong and winding-up order against Silver Starlight Limited on 8 July 2022.
Pan Sutong and Silver Starlight Limited subsequently appealed to the Court of Appeal against the bankruptcy order and winding-up order (Case Nos. CACV266/2022 and CACV265/2022). Additionally, Pan Sutong and Silver Starlight Limited respectively appealed to the Court of Appeal and applied for leave to appeal against the decision of the Honourable Madam Justice Linda Chan of the High Court to refuse the postponement for the determination of the petitions (Case Nos. CACV261/2022 and CAMP294/2022). Along with Pan Sutong’s earlier appeal to the Court of Appeal against the decision of Deputy High Court Judge Le Pichon to dismiss his application to set aside statutory demand (Case Number: CACV525/2021), Pan Sutong and Silver Starlight Limited have collectively lodged a total of five appeals with the Court of Appeal.
The five appeals involve different legal and factual disputes, including: (1) Whether Pan Sutong and Silver Starlight Limited are bound by the previous judgments in HCMP222/2021, CACV301/2021, and HCSD3/2021 and are precluded from re-litigating several issues by doctrine of res judicata; (2) Whether the Court should consider and admit new evidence sought to be adduced by Pan Sutong and Silver Starlight Limited in handling HCSD3/2021, HCCW295/2021, and HCB6548/2021; (3) Whether the Court should dismiss the application by Pan Sutong and Silver Starlight Limited for postponement of the determination of petitions; (4) The jurisdiction of the Hong Kong court to wind up the overseas company Silver Starlight Limited; and (5) Whether there is a bona fide dispute by Pan Sutong and Silver Starlight Limited regarding the debts in question. The issues involved in the case are intricate and intertwined. Given the complexity of the case, the Court of Appeal directed that the five appeal proceedings be heard together and dealt with at a combined hearing.
The appeal proceedings lasted for over a year. During the complex appeal process, our firm took the initiative to apply to the Court of Appeal and successfully obtained leave to adduce new evidence which strengthens CITIC’s case in opposition to the appeals made by Pan Sutong and Silver Starlight Limited. Furthermore, we advanced further protective measures to safeguard our client’s best interest. Considering the dire financial situation of Pan Sutong and Silver Starlight Limited and the apparent risk that they may not be able to bear the legal costs incurred by our client during the appeal proceedings, we applied to the Court of Appeal for security for costs from Pan Sutong and Silver Starlight Limited. We requested Pan Sutong and Silver Starlight Limited to first pay a sum of money as security for costs to the Court, or else the entire appeal proceedings would be dismissed. Our firm successfully obtained a security for costs order for the client, compelling Pan Sutong and Silver Starlight Limited to pay the security for costs to the Court before the appeal hearing.
Meanwhile, our firm collaborated closely with the counsel team, engaging in thorough communication, studying and analyzing the grounds for appeal, skeleton submissions and list of authorities of Pan Sutong and Silver Starlight Limited meticulously. The aim was to enhance our grounds for opposition, present a strong case before the Court of Appeal, and refute the appeal grounds put forward by Pan Sutong and Silver Starlight Limited. Ultimately, the Court of Appeal accepted our arguments and evidence in relation to the legal and factual disputes, upheld the decisions of lower court, and dismissed all five appeals. The summary of the judgment is as follows:
The Court of Appeal dismissed all five appeals. Along with two new evidence applications taken out by our firm, the Court of Appeal granted costs orders for all seven proceedings in favour of CITIC and, extraordinarily, with 3 Certificates of Counsel.
The series of cases are led by our partners Mr. Roy Leung and Ms. Jenny Wong, with the assistance of our litigation solicitors including Ms. Winnie Hui. Our firm has extensive experience in actions for recovery of substantial debts, company winding-up proceedings, and personal bankruptcy proceedings. We strive to prioritize clients, assist and support clients in proposing comprehensive legal actions, and spare no effort to safeguard clients’ interests.
On 20 June 2024,our firm was honored to receive a visit from 5 partners of Beijing Dacheng(Shenzhen) Law Office. During the visit, there was an exchange of ideas withour partners on legal services in Hong Kong and Mainland China.
We obtained an urgent anti suit injunction for a listed company (the “Company”) in the Hong Kong Court (the “Anti Suit Injunction”), restraining the defendants, being former directors of the Company (the “Defendants”), from interfering with the Company’s ongoing application in the Bermuda Court pending further determination of the Originating Summons filed by us on the same date by the Hong Kong Court.
The Anti Suit Injunction is a remarkable protection to the Company, over which joint provisional liquidators had been appointed by the Bermuda Court following an ex parte application by the Defendants without prior notice to the Hong Kong Court or the parties concerned (the “Appointment Order”). Trading of listed shares was then put to halt. In compliance with the Resumption Guidance by the Stock Exchange of Hong Kong, the Company through its newly appointed directors applied to the Bermuda Court for setting aside and/or discharge of the Appointment Order (the “Set Aside Application”). While the joint provisional liquidators remained neutral, the 1st Defendant being the main protagonist attempted to resist and stall the Set Aside Application.
In granting the Anti Suit Injunction, the Hong Kong Court heavily criticized the Defendants’ conduct in obtaining the Appointment Order being an abuse of process in engaging with forum shopping in Bermuda despite that the Company is listed in Hong Kong and that the parties had already engaged in protracted litigation in Hong Kong Court. Specifically, the conduct of applying for the Appointment Order was described as a calculated abuse of process for frustrating the effect of an earlier order granted by the Hong Kong Court in facilitating the conduct of a special general meeting of the Company.
Having worked over a weekend, we are pleased that our firm’s beat-the-clock efforts in working with a Senior Counsel and a learned junior counsel in Hong Kong and the Company’s legal team in Bermuda have yielded judicial success. It proves that our ample experience and expertise in cross-jurisdictional commercial and corporate disputes and liquidation matters play a pivotal role in critical moments.
We also assist the Company in dealing with corporate and compliance matters amidst ongoing litigations. Our diversity of practices and strong inter-departmental coordination enable corporate clients to receive one-stop legal services, in favour of business efficacy.
The aforesaid services are handled by our Litigation Partner Mr. Roy Leung, assisted by Senior Associate Mr. Olson Lai and Mr. Mathew Liu, Trainee Solicitor Ms. Sherrie Ma, Mr. Manson Chan and Mr. Andes Leung.
In a heartwarming reunion, our firm had the pleasure of welcoming the visit of ourold friend on 8 May 2024. Mr. Henry Mao, once a former PRC colleague joining our firm through the Law Society secondment program, recently paid us a visit bringing with him a flood of memories and nostalgia. His return was met with excitement and enthusiasm, as our partners eagerly gathered to reconnect with their former teammate.
Since leaving our firm and returning to his hometown, Henry has made remarkable strides in his legal career specializing in arbitration and dispute resolutions. His dedication and hard work propelled him to become a partner in charge of a respected and prominent PRC law firm headquartered in Shanghai.
Henry’s visit also provided an opportunity for knowledge exchange and collaboration. We shared experiences about challenging cases, market trends as well as the growth we both encountered along the way. Moving forward, we are excited about the potential for future cooperation and look forward to exploring areas of cooperation and leveraging our collective strengths to achieve even greater success.
