mareva injunction hong kong

Understand your clients’ strategies and the most pressing issues they are facing. This order will restrain a bank from allowing dissipation of funds. The advent of internet and email fraud cases has also seen urgent Marevas increasingly deployed to secure and recover monies before they travel beyond the reach of an unlucky transferor. This is a search and seizure order to assist with the preservation of documents. Anton Piller order. As part of Hong Kong's Civil Justice Reform that commenced on 2 April 2009, parties in foreign proceedings became able for the first time to obtain interim freezing or "Mareva" injunctions in Hong Kong in aid of intended or actual foreign proceedings, without otherwise having a substantive, underlying claim in Hong Kong. The Judge cited in particular Falcon Private Bank Ltd v Borry Bernard Edouard Charles Limited, unreported, HCA 1934/2011, to highlight the different applicable tests: “A Mareva injunction is designed to protect the claimant against the dissipation of assets against which he might otherwise execute judgment whether immediately or in the future… So long as the claimant has a claim against … The problem is that Y has no connection with Hong Kong for a High Court judge to establish personal jurisdiction over Y by way of service ex juris. In these circumstances, a Mareva injunction can be sought from the Court of First Instance which will restrain a party from dealing with and removing assets out of Hong Kong, up to a certain value. Defending for a PRC client with assets worth about HK$350 million in resisting Mareva injunction application in the High Court of Hong Kong in aid of the PRC legal proceedings commenced against him. 23 October 2020 Cases which Andrew have handled include Tian Tian v Cao Ji [2019] HKDC 197, in which he successfully applied for a Mareva injunction in relation to cyber-fraud, and Chan Yi Pang and Ors. Jen Kit may have turned on its facts, but the lessons to be learned are clear. Kenny Chun joined W. K. To & Co.’s Litigation & Dispute Resolution Department in 2008. The Hong Kong Court of First Instance is empowered under s. 21L(1) of the High Court Ordinance (Cap. The first edition of Interim Measures in International Arbitration edited by Lawrence Newman and Dr. Colin Ong, is most auspicious in its timing. It is therefore worth examining the reasoning in that case, noting that although the House of Lords reached the unanimous outcome that the Bank owed no duty of care towards the Plaintiff, each of the five law Lords sought to advance an individual opinion, possibly due to a perceived need to justify reversal of the Court of Appeal’s judgment. The typical order given in a Hong Kong case is broadly worded, prohibiting the removal, disposition, or diminishment in value of assets (whether in the Defendant’s own name, or solely or jointly owned) up to a specified value; if possible, specific assets may be particularised. The court noted that neither point was specifically brought to the attention of the judge who granted the original Mareva injunction (which had been continued at two further court hearings in the defendant's absence). an extraordinary relief that require the plaintiff to fully disclose all material matters within its knowledge. Shipping & International Trade Law aims to provide a first port of call for clients and lawyers to start to appreciate the issues in numerous maritime jurisdictions. Topics covered in this book include: Contractual Relationships Code of Banking Practice Money Laundering Negotiable Instruments Law Related to Securities Bankruptcy and Insolvency Introduction . In Grasberg, the Plaintiff obtained a Mareva injunction against the Defendant and served the injunctive order on the bank at which certain of Defendant’s assets were held (the ‘Bank’). Injunctions. Mareva injunction or freezing orders: ... Hong Kong, Singapore, New Zealand, Sri Lanka, India (excluding certain states) and Brunei. Hong Kong court rejects US businessman’s mareva “oppression” protest. If they do so, the shipowners may never get their charter hire… I think this court ought to grant an injunction to restrain the charterers from disposing of these moneys now in the bank in London until the trial or judgment in this action.”. That said, such proceedings, even if successful, may be of cold and very little monetary comfort to the Plaintiff. However, if a defendant wishes to challenge the scope of the disclosure provisions in the original Mareva injunction, the onus is on the defendant to raise this with the plaintiff's legal advisers immediately and, failing agreement, to apply to the court for temporary relief without delay (and on notice to the plaintiff's legal advisers). 25 Hong Kong judges may grant a Mareva injunction in support of proceedings outside Hong Kong, and, in certain narrow circumstances, a worldwide Mareva injunction that applies to assets located both in and beyond Hong Kong… Second, on obtaining the Mareva injunction and trying to show a real risk of dissipation of assets by the defendant, the plaintiff had not properly explained the circumstances surrounding the defendant's sale of two properties in mainland China against the background of litigation there between the plaintiff (and her brother) and the defendant. The initial application for a Mareva injunction is usually … Arthur Au & Co is a commercial set of barristers’ chambers in Hong Kong, with particular expertise in commercial, corporate and financial litigation. The recent case of Grasberg Capital Asia Ltd v. Bank of Communications Ltd [2017] HKCFI 2013 (13 November 2017) (‘Grasberg’) revisits some of these issues: namely the extent of the duty owed by a recipient (in this case, a third-party bank which held funds purportedly beneficially owned by the Defendant) to give effect the order, as well as the more practical question of civil liability when the Mareva fails to prevent dissipation. Emirates, once notified of the injunction, challenged it on the grounds that there existed no real risk of dissipation of assets. A Mareva injunction is a type of interim relief, but the requirements that claimants must satisfy in order to obtain one are slightly different from the requirements referred to in Interim relief proceedings , as further … In 2018, an interim injunction was awarded to restrain "persons unknown" from busking and carrying out other outdoor performance activities in a shopping arcade in Hong Kong. In a recent judgment made by Deputy High Court Judge Saunders on 24 May 2016 in Båsløkka Invest AS v Lambert and Sons Incorporated & Ors [2016] HKCU 1261, it was decided that in circumstances where a plaintiff, who has obtained a Mareva injunction over the assets of a defendant, and who now wants to apply under Order 13 Rule 5 of the Rules of the High Court (Cap. No Wind-up Court Order on StarTimes in Nigeria, Legal Proceedings Ongoing in Hong Kong; StarTimes Facing a Winding-Up Court Order for Rights Debts; The Ecobank and Airtel Story: Surviving a Contingent Liability and Equity Sale; FHC Upholds Mareva Injunction in Access Bank Case, Bank to Hold Onto SEPLAT's Assets Found inside – Page 274Stefan H. C. Lo, Kevin Kwok-yin Cheng, Wing Hong Chui ... dispose of his/her assets improperly, then a Mareva injunction may be obtained by the plaintiff. The Mareva injunction, also known as a freezing order, is a valuable and often-used weapon in a plaintiff’s legal armoury. For example, a Mareva injunction is a sophisticated but prescribed form under Practice Direction 11.2 of the High Court of Hong Kong. In that case, the Court granted an order of sequestration of assets against a bank that exhibited a high degree of negligence in complying with a Mareva order, although suspended the sequestration order for 14 days, pending the bank’s reconstitution of the funds that had been allowed to be depleted contrary to a Mareva order. Named after the case of TSB Private Bank International SA v Chabra [1992] 1 WLR 231, a Chabra Injunction is a Mareva Injunction over the assets of a defendant to whom the Plaintiff has no cause of action (i.e. Therefore, the court granted the injunction application in favour of the plaintiff. Whilst a tribunal has jurisdiction to grant a Mareva injunction, local banks may act to comply with a Mareva injunction granted by a Hong Kong Court more swiftly. The Courts can also grant interim relief in cases where a tribunal has not yet been constituted. HK's top court adopts common sense approach to assessing a party's loss when injunction is discharged. It is expected that, assuming other usual criteria (e.g. Found inside – Page 61Sai Hong Ko. Without a guilty knowledge , careless handling of a Mareva injunction on the part of a bank , according to his Lordship , will not amount to contempt of court . If a bank disobeys a Mareva injunction there are two ways of ... A Mareva injunction is basically a court order that (among other things) freezes a defendant's assets up to a certain value; those assets could be in Hong Kong or situated overseas. Where there are insufficient assets in Hong Kong but there exist assets elsewhere to satisfy a claim, the victim may consider applying for a worldwide Mareva injunction to freeze assets located both locally and abroad, especially where the fraudsters have certain Hong Kong nexus or assets so that such weapon would have teeth. Found inside – Page 279... and the conditions subject to which, a Mareva Injunction will be granted ... to enforce the Mareva Injunction in other jurisdictions outside Hong Kong ... (4) It involved a dispute over a deceased's estate. (This article is published in the Dec 2017 Issue of Hong Kong Lawyer.Please click HERE for the online article.). Mareva or Freezing Injunctions in the Cayman Islands. As part of Hong Kong's Civil Justice Reform that commenced on 2 April 2009, parties in foreign proceedings became able for the first time to obtain interim freezing or "Mareva" injunctions in Hong Kong in aid of intended or actual foreign proceedings, without otherwise having a substantive, underlying claim in Hong Kong. There has been a significant rise in cybercrimes since the outbreak of COVID-19 pandemic as more people are working from home and shopping online. Found inside – Page 1056assets.7 Although initially Mareva injunctions were available only for assets located within the court's jurisdiction, the English courts later recognized ... 1992) (reporting issuance of Mareva injunction in Hong Kong arbitration). European Banking institution: Acting for the client in respect of US$100m fraudulent scam and consequent worldwide mareva injunction order and disclosure order against third party banks from the High Court of Hong Kong on an urgent and ex parte basis within 24 hours, asset tracing and recovery actions in respect of monies wrongfully appropriated. Become your target audience’s go-to resource for today’s hottest topics. Over the last decade, the topics of corruption and recovery of its proceeds have steadily risen in the international policy agenda, with the entry into force of the United Nations Convention against Corruption (UNCAC) in 2005, the Arab ... The Russian 2016 Arbitration Reform (the “Reform”) was a game-changer for both arbitration practitioners and the arbitral institutions. The learned Master found that there was no such duty of care and concluded (relying on the opinions of the House of Lords in Her Majesty’s Commissioners of Customs and Excise v. Barclays Bank Plc [2006] UKHL 28 (‘Barclays’)) that it would not be fair, just and reasonable to impose such duty on the bank. A PRC subsidiary of a New York-listed investment fund in successfully obtaining a Mareva injunction against a red chip company and others from the Hong Kong High Court in support of PRC proceedings in a RMB550 million dispute. A good technique, if the structure of the document permits (while avoiding repetition), is to have a separate heading in the sworn statement (known as an affidavit or affirmation) in support of the application for a Mareva: "[Applicant's] [Plaintiff's] duty to be full and frank." As the requirements for a Mareva injunction had also been met, the Mareva injunction was granted. In addition to the proprietary injunction, Gall also obtained a Mareva injunction against the Defendant’s cryptocurrency wallet by identifying the wallet address. Coupled with orders to disclose assets, the Mareva injunction is inevitably high on the menu of options presented to clients when faced with a potentially questionable Defendant. Maintaining Prosperity and Stability under the Common Law. Found inside – Page 686The Hong Kong courts are extremely conscious of the transient nature of ... of the potentially destructive nature of a Mareva Injunction granted in error . The origins, effect and scope of a Mareva injunction. ... Penlington JA recognised that a s 17(1)(a) order can have very serious consequences to a businessman in Hong Kong in restraining him from carrying out normal financial transactions and may have the effect of creating doubt on his creditworthiness which can be highly damaging. (This article is published in the Dec 2017 Issue of Hong Kong Lawyer.Please click HERE for the online article.). Banks are already subject to strict regulation and potential sanctions in connection with money-laundering and similar activities. [HCA 2368/2012] The plaintiff (“IRISL”), an Iranian corporation, sued the six defendants for loss and damage arising out of the Mr. Chun specialises in civil and commercial litigation and has extensive experience on matters relating to shareholder and partnership disputes, commercial fraud, commercial cross-border litigation and insolvency matters. In a recent interview, Tang criticised the Hong Kong Journalists Association for “infiltrating campuses to win over students.” Ronson Chan, chairman of the Hong Kong Journalists Association refuted the statement […] However, Mimmie Chan J disagreed because the Hong Kong court derived its power to grant the Mareva injunction sought under Section 45 since the defendant had assets in Hong Kong. It is still open to a Plaintiff to commence committal proceedings against, say, a director of the bank, in respect of failure to ensure enforcement. Named after the case of TSB Private Bank International SA v Chabra [1992] 1 WLR 231, a Chabra Injunction is a Mareva Injunction over the assets of a defendant to whom the Plaintiff has no cause of action (i.e. (2) Any deviation from these provisions must be brought to the court's attention on the initial application and be supported by good reasons.(3). Norm in civil litigation in Hong Kong Bar Association and holds his in. 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