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Matrimonial Causes2015

A v. B

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Files (4)

[2022] HKFC 203-EN-2022-09-23

A v. B

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FCMC 9824 /2015

[2022] HKFC 203

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

MATRIMONIAL CAUSES

NO. 9824 OF 2015

----------------------------

BETWEEN  
 APetitioner

and

 BRespondent

----------------------------

Coram: Her Honour Judge Sharon D. Melloy in Chambers (Not open to public)
Dates of Hearing:16 – 19 November 2021 and 4 – 7 January 2022
Dates of written closing submissions:11 February 2022
Date of written replies:28 February 2022
Date of Judgment:23 September 2022

------------------------------------------------------

J U D G M E N T
(Relocation)

------------------------------------------------------

Introduction

1.  This is an application by the Petitioner mother dated the 5 October 2020, for leave to permanently remove the only child of the family out of the jurisdiction of Hong Kong in order to relocate with her to Sydney, Australia.  The child N was born on the XXXXXX 2011 and is now 11 years of age.  She was 9 years old at the time of the application.  The father opposes the mother’s application.  

2.  Unlike in other cases, there are no additional applications before the court.  By virtue of a court order dated the 26 February 2018 the parties have joint custody of N, with care and control to the mother.  The access arrangements are defined and are set out in considerable detail in that order, which is in part due to the fact that the consent summons was ultimately based on a mediated agreement.  The father enjoys regular access, including overnight staying access and contact otherwise when he has supper with N or he takes her to school.  He sees N, sometimes for short periods, sometimes for longer periods, for 10 days out of every 14 during term time.  The parties also share the school holidays.

3.  In the event that the relocation is denied neither party makes any further application to change these arrangements.  However, there is disagreement with respect to the access arrangements in the event that the relocation is permitted.  The parties agree that they shall continue to have joint custody of N whether she goes or she stays.

4.  All relocation cases are difficult, given that they are, by their very nature binary, but this one is perhaps more difficult than most.  Both parties are bright, and they each have the benefit of a specialist family law firm to assist them.  They have each presented a very arguable case, although one, that in so far as the mother is concerned at least, has changed considerably over time.  I should add that I have found it a difficult case to determine.

5.  The mother has termed this a “going home” case although this is not accepted by the father.  The other point to note is that this is not to be categorized as a financial application either.  The parties finally reached an agreement on their finances during the course of their divorce proceedings and a consent order to that effect is dated the 18 August 2017.  The decree absolute was granted on the 28 March 2018.  Thus, this application is a standalone application brought approximately 2 and ½ years after the divorce proceedings were concluded.  The mother appears to have been very well provided for under the terms of the financial agreement.  She says that she has recently sold the former matrimonial home and that she has 5 other investment properties, which she is also in the process of selling.  She also holds a number of other investments.  Although she says that she intends to set up an online XXXXXX business it is not clear whether or not she is necessarily going to “need” the income from that business going forward.     

6.  But the application is also brought at a time when the global Covid-19 pandemic continues to dictate how and when we can travel.  Although many countries have lifted all restrictions, including Australia, Hong Kong has not.  Although it would be fair to state that the situation has eased significantly when compared to that either at the date when the wife made her application in October 2020 or at the time of trial in late 2021\early 2022, or indeed when the closing submissions were filed.  But the fact remains that at the time of writing Hong Kong was still in the grip of the so-called 5th wave with infections sometimes topping 10,000 a day.  Travellers still need to quarantine in a hotel for a short period of time and to observe certain protocols, although that is now more limited when compared to the stringent requirements imposed previously.  But as things progress and given that China continues to maintain a zero Covid policy, there is still the possibility that things may change again and that more stringent travel restrictions may be imposed in the future.  Of course, the hope is that this will not be the case and that Hong Kongers will shortly be able to enjoy international travel with no requirements for hotel quarantine.  But this is in no way guaranteed.  

What then are the main issues to be considered?

7.  The main issues then are these:

a)  Should permission be given for N to leave Hong Kong in order to relocate to the Sydney, Australia with her mother?

b)  Should any further orders be made once that issue has been determined?

Background

8.  Although the parties eventually reached an agreement on all matters in dispute, it would be wrong to categorize this case as in any way “amicable”.  The parties were at logger heads for much of the litigation and were in and out of court frequently.  There are three Rulings/Judgments on the court file, the first dated the 22 August 2016, was a ruling on choice of schools and the father’s access arrangements, the second, dated the 25 January 2017 was a judgment on discovery and the third dated the 23 June 2017 was a judgment on maintenance pending suit/interim maintenance and litigation funding.  In the last judgment I set out the background to the case as follows:

11. In short, the parties met in 1996 in Hong Kong and married on the X October 1999. Both sides of the family had emigrated to Australia in the 1980’s and both parties were educated in Australia as a result. It seems that the marriage was not a particularly happy one, with periods of separation and subsequent reconciliation. The parties finally separated for good in July 2014 when the husband moved out of the former matrimonial home.  On the 31 July 2015 the wife issued a divorce petition based on the husband’s alleged unreasonable behaviour. This was initially defended, but thankfully the parties were able to come to terms on this aspect of the case at least and in November 2015 the particulars were amended to ones that were more agreeable to the husband. The divorce petition then proceeded on the basis of mild unreasonable behaviour particulars. The decree nisi was pronounced on the 21 December 2015.

12. The parties have one child N who will shortly turn 6 years of age. Unfortunately, there has been a great deal of disagreement concerning the arrangements for N and the parties have been in and out of court on a fairly regular basis since the petition was issued arguing over arrangements for her care, access and schooling. In the event that the parties are not able to reach consensus it is anticipated that this aspect of the case will need to be set down for trial. The father has made it clear that ultimately, he would like an order for joint custody and either shared care or joint care and control. This is resisted by the mother, although there seems to be a tacit understanding that there should be an order for joint custody. However, to date no consent summons has been filed to this effect. It is hoped that the parties will now be able to narrow their issues with respect to N and that the matter can then be set down for trial without further ado. The parties have already attended one Children’s Dispute Resolution hearing and there has also been a further hearing on education.  

13. There has also been a lot of disagreement with respect to the parties’ finances and there have been ongoing issues with respect to discovery. It is the wife’s case that the husband is a man of great wealth and that this wealth emanates from a number of family companies. She maintains her position that the husband has not been full and frank in his disclosure to date. On a smaller scale there have also been issues with respect to monies held by the wife, which she maintains are ultimately beneficially owned by her father.   

9.  In the Ruling on choice of schools and access arrangements, I had also set out the background to the case by reference to the submission from Mr Pilbrow S.C for the mother.  I shall repeat some of that again here, as it sets out what appears to have been a common understanding at the time, namely that N would, in due course, attend XXXXX School in Sydney.  As I understand it XXXXXX is an independent non-denominational girls’ school for both day girls and boarders. It does not appear to be disputed that N was “put down” at birth for a number of schools in Sydney and elsewhere, including Hong Kong and the UK, in order to ensure that she had a maximum number of educational choices as she got older.  In this instance it seems that the understanding was that N would board.  However, as is clear from both parties’ affidavits/affirmations, it is also evident that no subsequent agreement was reached in this respect.  In particular, the mother has stated on a number of occasions that she is not prepared to allow N to board, even though the issue of boarding does not form part of the present application.  The father, for his part, says that there has not been any agreement that N should leave Hong Kong, either to board or otherwise.  The submission states inter alia as follows: 

4.   Both counsel have set out the background to this matter in their respective submissions. Mr Pilbrow S.C. for the mother says as follows:

(i)    Both the Petitioner’s and the Respondent’s families emigrated to Australia in 1984.  As a result both parties received most of their secondary and the whole of their tertiary education in Australia.  The parties and N carry HKSAR and Australian passports.  Both parties returned to Hong Kong after graduation in 1992.  The parties met in 1996 and married in 1999.

(ii)   N was born on XXXXXXXX 2011 and will thus very shortly be 5 years old.  The Petitioner ceased employment in 2008 and so became N’s primary carer from birth.  The parties separated for 9 months or thereabouts in 2004 but reconciled.  From 2012 onwards, both parties, according to the Social Welfare Officer, accept that their marital relationship deteriorated.  In July 2014, the Respondent moved out of the matrimonial home and in July 2015, the petition herein was issued.

(iii)  N started attending XXXXXXXXXXXXXXXXXXXXXX XXXXX commencing in September 2013.  She started in K1 in 2014 and K2 in 2015.  Normally, N, would be set to commence K3 this month, but the school has indicated that, if she is to continue at XXXX, then they would require her to repeat this year in K2.  The Petitioner believes that the environment and teaching methods of XXXX do not suit N at this time and wishes her to attend an international school, namely XXX XXXXXXXXXXXXXXXXXX.  It appears to be common ground that N should attend XXXXXXXXXX in XXXXX, Australia in Year 7, where she had already been accepted.

10.  It is also of note that it was common ground, at that stage, that N was struggling at school.  She was only 5 years old at the time, but she was said to be “far behind the basic reading requirement of the school syllabus” (English syllabus).  She was also anxious and could cry easily in class.  She also struggled with Chinese, particularly with the dictation requirement.  In addition, she also failed to meet the school academic syllabus in General studies and Math.  All in all, the school recommended that she repeat K2 because she was not “up to standard with the K2 academic requirement”.

11.  N also appeared to be struggling emotionally and there were significant issues with respect to access.  Dr Yuen wrote a psychologist’s report at that time and commented that N had “a separation anxiety disorder” which probably arose from the “harmful effects of her parents’ divorce and ensuing emotional battle”.  At paragraph 28 of the Schooling Ruling, I added as follows:   

28. Unfortunately, N is struggling a little. In the words of Dr Yuen:

19. Her anxiety is mostly manifested in her hyper-vigilance when away from her primary attachment figure, namely her mother, refusing to sleep alone, taking a long time to fall asleep, bed-wetting, nightmares and her poor school performance.  It is most likely that her anxiety is related to the lack of appropriate parental interaction, extensive parental conflict, tension from the divorce proceeding, being overly protected by mother on the one hand and ambivalent reaction toward father on the other.

12.  Consequently, in my order dated the 28 August 2016 I directed inter alia that N have an educational assessment, to be filed prior to the next Children’s Appointment.  It was also directed that N attend therapy, possibly play therapy given her age, for what appeared to be her mild anxiety disorder, and generally.  I also asked that the parents also have therapy or attend counselling, given the effect that their ongoing disputes appeared to be having on their young daughter.  Ultimately, I also ordered that N repeat K2 at her current school.  

13.  At the hearing on the 4 January 2017, I was told that N’s anxiety issues had improved and that she was having play therapy.  Both parents were also receiving some form of therapeutic support.  At that stage the father was seeking increased overnight access, which was again resisted by the mother.

14.  At some point the play therapist was replaced by a Mr. Lau, a psychologist from the Hong Kong Sanatorium who became N’s counsellor.  It is common ground that N has now had therapy for many years and that she still continues to see Mr. Lau, but more on an ad hoc basis than before, given the restrictions imposed by Covid etc.  Prior to Covid she had a weekly session scheduled.  It was though acknowledged that she did not always attend every week, even then, as other things sometimes came up.  But it is clear that certainly the mother, and possibly the father too, was of the view that N continued to need this level of psychological support on an ongoing basis.  The mother has said that she will look for someone to replace Mr Lau in Sydney and that he will assist in the interim.  She does not say that there is no longer any need for this level sort of psychological support for her daughter.

15.  In so far as the educational assessment is concerned, this is dated the 14 November 2016.  Thankfully it found that there were no particular difficulties.

16.  Unfortunately, however, disagreements between the parties over N continued.  CDR hearings took place on the 17 March and 13 June 2017.  On the 18 August 2017 the parties agreed joint custody, but the practical arrangements with respect to N’s day to day care were still not agreed.  It was on that occasion that I ordered that an updated child psychological report be prepared by a Single Joint Expert.  That report is dated the 17 November 2017.  Following receipt of that report the parties were able to reach a detailed agreement with the assistance of a well-known mediator and on the 26 February 2018 a consent order to that effect was made.  In doing so the father stepped back and no longer pursued the issue of joint care and control or shared care.  The parties agreed inter alia as follows:

D.  AND UPON the Petitioner and the Respondent agreeing and Undertaking to the Court and to each other that they agree that the arrangements for the Respondent to spend time with N are as follows:-

(i)    Week 1. N will spend time with the Respondent on Monday evening from 5:30pm to 8:30pm.  N will have overnight staying access with the Respondent from 5:30pm on Thursday night to 8:30pm Saturday night.

(ii)   Week 2. N will spend time with the Respondent on Monday evening and Thursday evening from 5:30pm to 8:30pm. N will have overnight staying access with the Respondent from 10:00 am Saturday morning to 10:00 am Sunday morning and the Respondent will return N to Church or the lobby of the Petitioner's home and the Petitioner will notify the Respondent with one hour's notice if the drop off is to be at Church.

(iii)  In addition, the Respondent may also collect N from the Petitioner's home and drop N off at school one day per week ("Drop Off Day").  The Respondent will inform the Petitioner of the Drop Off Day for the coming week by email on the Saturday prior to the commencement of the school week.  The Respondent will collect N from the lobby of the Petitioner's home on the agreed Drop Off Day.

(iv)  They agree that the Respondent may need the assistance of a helper or licensed driver to collect N for the start of access.

…

Reviews and Others on Access

F.   AND UPON the Petitioner and the Respondent agreeing and Undertaking to the Court and to each other that:-

…

(ii)  They will review how the arrangements set out in Recitals D and E are working for N and for each of them in mediation in the second half of November / early half of December 2018 and prior to the commencement of the Christmas school holidays, with the intention of considering (i) to extend overnight access and (ii) an additional pick up from school on Monday and / or Thursday, earlier than the current schedule at 5:30pm or another afternoon as mutually agreed.

17.  It should also be noted that despite this agreement that these arrangements have not altered since. I am told that the parties have been in further mediation on seven separate occasions since the 2018 agreement was reached.  Although of course, those sessions remain completely private and confidential, it is of note that no further consent summonses have been filed in court nor have I been informed of any other agreements reached between the parties during this period of time.

18.  The court therefore began the trial with this background information to hand.  HH Judge Melloy had been the docket judge throughout.  She regarded this as a high conflict case and she was concerned to get an update about N’s current emotional and psychological well-being.  To that end it is clear from the affidavits filed by the parents that both parties believed that N had made some progress, but that she was still somewhat vulnerable.  For example, the mother said inter alia as follows in her 11th affidavit filed in support of the relocation summons dated the 16 October 2020:

Anxiety, Disturbed Sleep & Emotional Issues

44. As the Court will be aware, N has had issues over the years with anxiety, sleeping troubles and emotional difficulties.  In particular, N experienced separation anxiety when she was not with me.  These difficulties have not totally diminished and, in my view, the relapses she experiences from time to time are exacerbated by the style of education she is at present receiving. The pressure will only increase on her as she moves up through the school system, here. This style of schooling suits some children, but not our daughter.  I have respected K's wish to provide N with a "solid foundation" in Chinese, and acknowledge his reasons for this, although I feel that achieving that goal has been at the expense of N's overall welfare and wellbeing.

…

48. N is most anxious when she is away from me. Other issues that trouble her little soul are her Chinese studies, her insomnia, and worries around her relationships with Madam C [the paternal grandmother who has since passed away] and K's [the father’s] partner, V, although she worries less about Madam C now that she is spending less time in her care. N is still afraid of the dark and she continues to sleep in my room at night, and with K when she stays at home.

19.  In his affirmation in response and at trial the father explained how he had assisted N in sleeping in her own room when she was with him.  The mother confirmed that this had been tried at her house, but that N was still sleeping with her.

20.  The father, for his part, also commented inter alia in his 10th affirmation dated the 6 January 2021 that   

20. Both of us wished for N to have a stable environment in which to grow up and thrive. E [the mother] tends to be risk-averse, resists change and is overly protective of N whether socially or at school. E's approach has been to emphasise the importance of stability and the status quo for N.  She has historically been very firm on adhering to the agreed access schedule, which she thinks should always be fixed.  Fortunately, during the 3 years that have elapsed, N has become used to being in our respective homes and spending time with us separately.  She is enjoying her school life and has made friends.  I am cautiously optimistic that N has turned the corner but acknowledge that her newfound confidence remains fragile: according to E, she still contacts her counsellor Mr. L.

The mother’s case and her proposals for access in the event that the relocation is permitted

21.  In her affidavits the mother paints a picture of a fragile child who is not really coping with the demands of her present school.  She says that the school that she has identified, namely XXXXXXX in Sydney, would be a much better fit for N.  She also emphasizes its strong Christian ethos and pastoral approach, which she approves of.  She also reiterates that she wishes to return “home” and that she would have done so long ago had she not been committed to ensuring that the relationship between the father and N was on a strong footing.  She says that she is concerned for her own father and that she wishes to be more on hand given his advanced age and health concerns.  She also wishes N to have an opportunity to create a stronger bond with her maternal family, just as she has done with the paternal side.  She sets out in detail the practical arrangements surrounding the proposed move.

22.  The mother’s case on access in the event of a relocation is set out in her response to the father’s updated proposals, which were handed up to the court during the second tranche of the trial, on the 6 January 2022.  These state as follows:

[Please note that the father’s proposals are in black and the mother’s response whilst originally in red, are now in bold for the purposes of this judgment].

B Relocation Allowed - N to relocate to Australia with M
1.1Term time access
Subject to his work commitments and being able to take leave, F will endeavour to have access to N in Australia
a)   Up to 1 week with weekends on either side whenever he is able to take time off work so that N could stay with him
See b) below
b)   F would endeavour to fly to Australia on the 1st half of each month to exercise such access
Not agreed. Given the change in proposal in respect of the sharing of the holidays,M proposes only three such fixed visits per year. Therefore,M's proposal is that F have up to one week in Terms1,3 and 4 - to be agreed each year in advance taking into consideration those holidays F is to enjoy each year,in order to bridge the "gaps" between the term holiday access.
c)   F will provide prior notice as early as possible if he is not able to make it so that an alternative date I time can be found
See b) above
d)   In any event, notice will be given to M not less than 1 week before travel, together with details of flights and residence
Agreed
1.2Holidayaccess
(Aiming for a roughly overall 55:45 split to F and M respectively)
The percentage split of holiday shall be approximately 50/50
1.2.1Australia's summer holiday
(December and January 50 days)
a)   To be shared between F and M on equally (F intends to spend the holidays with N in Hong Kong)
Agreed - save that M proposes that N need travel out of Australia for access with F only twice per year.
b)   N to return to M's care not less than 2 days before start of term to prepare for school
Agreed
c) Christmas holiday dates to be alternated with F to have the first half of the holiday even Years
Agreed
The first half of the Summer holiday will encompass Mother's Birthday, Christmas Day and Boxing Day.
d)   Parent intending to travel out of Australia with N to provide travel itinerary and accommodation details at least one month before travel
Agreed
1.2.2School term breaks
a)    End of Term 1 (early April) - 19 days
To alternate with F to have even years
Agreed
b)   End of Term 2 (late June, overlaps with HK's summer break) - 24 days
F to have entire term break
Not agreed - M proposes that this holiday is shared equally each year.
c)    End of Term 3 (mid-September) - 16 days
To alternate with F to have odd years
Agreed
F would want to bring N back to Hong Kong for the Term 2 term break to spend time with paternal family and cousins
Noted: save M's proposal that N only need travel out of Australia twice each year for access.
 
1.2.3EmergencyAccess
N to travel to Hong Kong in case of family emergencies
Agreed
1.3Travel arrangements
a)   If intending to travel out of Australia with N, F will provide travel itinerary and accommodation details at least 2 weeks before travel
Agreed
b)   For travelling outside of Australia, F (or 1 of 3 nominated family members / friends to be agreed) do pick up N from Australia (unless M will also travel to Hong Kong, then M may bring N to F)
Agreed
 
1.4Other matters
a)   Electronic access: Daily (6pm - 9pm Australia time)
Agreed
b)   Information sharing
i)   Regardless of which school N will attend, there be a mutual sharing of school info, events and ECAs
Agreed
ii)  School to be informed of family situation and school / M to arrange for duplicates of all school info / report cards, etc. to be provided to F
Agreed

23.  As indicated above and as pointed out in the father’s closing submission, the mother’s case at trial was significantly different from the case she presented on affidavit.  Ms Remedios explains it thus:

M's Case

6. M says that she wishes to relocate to Australia with N to be with her family and so that N can discover her Australian background and get to know her maternal family.  There are significant inherent contradictions in M's case.  M's documentary evidence placed emphasis on N's fragile emotional state, including the fact that she has been receiving counselling since 2015.  M alleges that N was not coping with the "local" approach to education at XXXXXXXXXXX XXXXXXXXX and says that N should relocate to a school which had a more pastoral approach. At trial M shifted her position: (a) she accepted that N was an able student and "The Mother views N's education at XXX as acceptable... XXX is okay". [Petitioner's Opening, para 24]; (b) she sought to downplay N's emotional vulnerability, brushing off the SJE expert evidence as "nonsense!".

With respect I agree. I should add that the experts would not have been aware of this change in stance ahead of the trial.

The father’s case

24.  The father summarized his position in his affirmation as set out in paragraph 39 below.  Put simply he does not accept the mother’s case at any level.

25.  The father’s updated open proposals on access, in the event that the relocation is permitted (see paragraph 22 above), were changed following an indication from the court that it was not feasible to expect N to travel to Hong Kong more than twice per annum for holiday access, whilst the Hong Kong’s hotel quarantine measures remained in place. 

26.  Again, referring to Ms Remedios closing, she summarized his case as follows:

F's Case

7. F's case is consistent throughout. Relocating is not in N's best interests and in any event is premature.  N is prone to anxiety and the divorce has greatly affected her sense of security. Her resilience is thin. Whereas M is herself an anxious person who over protects N, unlike M, he offers N a chance to strengthen her resilience and build her confidence. This is important for N's well-being and healthy development, particularly in the turbulent years ahead, approaching her teens.  N aligns with M and M's wish to go, but at ten N does not appreciate what she would be losing, which cannot be replaced by international access, especially during the pandemic.  The Father-Daughter relationship will be sorely tested.

8. It is submitted that F's analysis contained in his January 2021 affirmation, is substantially confirmed by the subsequent SJE Report in October 2021.

With respect I accept much of what is said here.

The Law

27.  There is no dispute over the law. It is accepted “that the best interests of N remain the court’s paramount concern”.  It is also accepted that the original guidelines as set out in the string of cases following Payne remain relevant.  In our own Court of Appeal’s decision in H v W[2021] HKCA 733 this protocol was reframed slightly as follows:  

(1) Is the applicant's proposal genuine and realistic in the sense that it is not motivated by some selfish desire to exclude the father from the child's life?

(2) Is the respondent's opposition motivated by genuine concern for the future of the child's welfare or is it driven by some ulterior motive?

(3) What would be the impact on the applicant, either as a single parent or as a new spouse of a refusal of his/her realistic proposal?

(4) The outcomes in (2) and (3) must be considered in the overriding review of the child's best interests as the paramount consideration.

28.  In that judgment a delayed relocation was overturned in part because of the continuing nature of the Covid 19 pandemic.  At paragraph 89 of their judgment the Court of Appeal stated as follows:

89. In light of the above, we have come to the view that the Judge had plainly erred in the exercise of her discretion. The Mother's application for relocation was rushed and pre-mature and made during a period with the pandemic having no end in sight and normal frequent travel was not possible, and her application for relocation should not have been allowed at that stage. It has now been almost a year since the trial, and very likely there have been further changes in circumstances with A having started and settled in her present school for some 6 months. Even though schooling had been by remote, we understand that from 24 May 2021, in person schooling is to resume in Hong Kong.

Discussion

29.  I must now turn to consider the issues, the law and each party’s evidence as set out in their affidavits and as given orally by them during the hearing.  I also heard evidence from the Social Welfare Officer who filed a report dated the 2 November 2021.  In addition, I had the benefit of the original Single Joint Expert’s report dated the 17 November 2017.  This report was prepared by the Jadis Blurton Family Development Center.  Three examiners are listed, Dr Jadis Blurton herself, Dr Kristie Craigen and Dr Alison Cook.  The report is described as a Child Development Evaluation.  As I have said this report assisted the parties in coming to terms with respect to the arrangements for N originally.  In addition, an Updated Child Development Evaluation was filed on the 18 October 2021, shortly before the commencement of the trial.  By then Dr Blurton had retired and the examiners are listed as Dr Craigen and Dr Cook, as before, plus a psychometrician Mr Ben Ho. N was 6 years and three months old at the time of the first report and 10 years and two months old at the time of the second report.  It is of note that the parties had been arguing about her care in one way or another for most of her life.

The experts evidence

The law and the approach taken in this case

30.  This matter was originally set down for a four-day trial, after discussion with both sides.  Although it was clear that the two reports had come to different conclusions, the SWR report supported the relocation and the updated Child Development Evaluation did not, this of itself was unfortunate but not that unusual.  No other applications were made prior to the trial.  For example, the mother did not seek leave to file a further report to challenge that of the Dr Blurton report.  Thus, both myself and indeed most probably the father’s legal team were taken by surprise by both the change in stance taken by the mother and the somewhat aggressive approach taken by her legal team with respect to Dr Craigen, who appeared on behalf of the Jadis Blurton group.

31.  The mother’s stance changed as she sought to down play the fact that on her case N remained vulnerable.  This was no longer seemingly the stance to be taken as counsel for the mother sought to reiterate again and again that N was a normal, intelligent, articulate and gregarious little girl.  I pointed out on a couple of occasions that I had been the docket judge throughout, but with seemingly little effect.

32.  In a similar vein the mother also accepted that both schools were good schools and much of the basis of her application was consequently swept under the carpet.

33.  The difficulty then came in the approach taken to Dr Craigen.  She was in the witness box for two and a half days.  She was subject to very lengthy and on occasions, as I have said, unnecessarily aggressive cross examination.  I was told that the mother’s legal team had decided not to make any further applications with respect to the report because they did not wish to adjourn the trial.  However, this approach did arguably lengthen the trial.  At the end of the day, it went part heard and took eight as opposed to the originally listed four days to complete.

34.  I was also completely taken aback by the conclusion reached in the mother’s closing submission namely that

51. … and thus the tests, interviews, report and its conclusions were all prejudiced.  Dr Craigen started with a prejudice, or theory, and worked towards a report was always going to support that theory. It was always a foregone conclusion, right from the start. In these circumstances what weight should be placed upon such a report?

This is a very damning conclusion to reach of a highly respected professional psychologist, without another expert’s report to support it.  The mother maintained that Dr Craigen had pre-determined the case and that all of her numerous tests and other collaborative interviews were done with that in mind.  For the avoidance of doubt this is not accepted. I note that exactly the same approach was taken with respect to both reports. The first was accepted, the second was not. Presumably because it did not accord with the mother’s case. 

Should permission be given for N to leave Hong Kong in order to relocate to the Sydney, Australia with her mother?

Introduction

Is the mother’s case genuine and realistic in the sense that it is not motivated by some selfish desire to exclude the father from the children’s life?

35.  I accept that the mother’s application is most probably genuine, but I did have some concerns about the timing of her application and the fact that as the case progressed, the Covid 19 pandemic also progressed.  This meant that it soon became clear that if the relocation had been allowed earlier, that that would have meant, in reality that there could have been no physical contact between father and child, certainly in the immediate to short term.  It was just not feasible in a scenario where after each flight the person coming into Hong Kong – either N (and the mother or a third party) or the father, would be required to do 21 days’ hotel quarantine, or even worse, that they would need to go somewhere else first.  In such a scenario it might have been more sensible for the mother to have sought to adjourn matters pending the easing of the pandemic. This did not happen.  At the time this led the court to question the mother’s motives, especially as there was no particularly pressing reason for the relocation to take place immediately.  N was still young, there was no reason from an educational perspective why she had to relocate quickly.  There were also no financial constraints, nor was there a job or a partner in the wings in Sydney, although I do accept that the mother was concerned about her own father.  As it happens there was a considerable delay caused by Covid and the court’s own unrelated difficulties and at this stage the quarantine requirements although difficult are not as impossible as before to circumvent.      

36.  By the same token, there is no doubt that the mother’s plan is realistic.  I accept that it is both well researched and investigated.  I don’t accept the father’s concerns in this respect (e.g., that the mother could not cope without significant domestic support that would not be forthcoming in Sydney etc).  The mother has set out her proposals in full, she will buy a flat in a reputable area of Sydney, reasonably close to N’s school.  She has the money to do so and financing the purchase should not be a problem.  She has located a good school for N, X and she has maintained a place for her by paying for the fees pending receipt of the judgment.  Although much of the mother’s affidavit evidence centred on X being a better fit for N, than her current school in Hong Kong, as I have already said this shifted at trial when it was accepted that both were good enough schools.  Much was also made both in the affidavits and at trial of the fact that the father had also attended the interview at X.  For the avoidance of doubt, the father is not to be criticized for this.  The court had indicated on several occasions that it was important to maintain as many educational options for N as possible going forward.  Just because the father took part in the interview process at X, did not mean that he accepted that N should infact attend that school.  It represented one option and it was therefore sensible of him to have participated in the process.  With respect N should also have been made aware of this.

37.  The mother has also said that she wishes to return “home” and that she still considers Australia home, even though she has only actually lived in Australia for 8 years. She is now 51 years old. Like many Hong Kong families both she and her family, had emigrated from Hong Kong in the 1980’s.  Her father and brother remained in Australia.  She returned to Hong Kong and has lived in Hong Kong since.  Both mother and father, plus N are Australian citizens and they hold Australian passports.  But they are also from Hong Kong originally and are Hong Kong Chinese by birth.  This is the only home that N has ever known.  I do not therefore accept that this is a “returning home” case in the same way as an ex-pat who is on a short-term secondment “returns home”.  I do though accept that the mother genuinely wishes to relocate to Australia, in part to be close to her ageing father.  I also accept that she has retained some friends there and that she is keen to resume closer contact with her brother and his family.  I am also sure that she would cope with the transition, despite the father’s obvious misgivings in this respect.  

Is the Father’s opposition motivated by genuine concern for the future of the child’s welfare or is it driven by some ulterior motive?

38.  I accept that the father’s opposition is also completely genuine.  In his affirmation dated 8 January 2021 he provides an overview as follows:

Overview

3. E's present application to permanently remove N from Hong Kong to Sydney, Australia is not in N's best interests.

4. I do not accept that E's reasons for relocating are justifiable or properly investigated or realistic.

5. E and I originated from Hong Kong. Our families went to Australia when we were in our teens and we finished our education there, over a period of 8 years only (1984 to 1992). Since then, we separately returned to and have reinstated Hong Kong as our home for over 25 years.  It is the only home N has ever had.

6. N thrives on the love of both parents and the security this gives to her. She was very upset by our divorce but appears to have found some stability in the routine we have put in place.  Normally, she sees me on 10 out of every 14 days and spends a considerable amount of her time with me and my family.  As an only child, she is very close to her cousins.  She has settled well into her current school here in Hong Kong, is doing well academically and has made friends.  It would upset her equilibrium tremendously if all that were to change, and she was only to be with me for short periods of time and was to have long periods of time apart from me, her cousins and her friends.

7. I do not accept that E will be creative or flexible with access.  The access arrangements set out in the Consent Order have been in place for almost three years now.  On the whole they are working but E is not flexible.  She does not engage and tends to go silent, not answering my communication.  Consequently, we have had to return to mediation on for at least 7 sessions between 2019 and 2020 since the Consent Order was pronounced.  This is one of my concerns for the future, particularly if we were to live in different continents.  It is one matter to try to make alternative arrangements when we are in the same jurisdiction.  This is hard enough but potentially is insuperable if we were living in different continents.

8. There is currently no opportunity for continuing contact between N and me, with no reliable end in sight.  The restrictions imposed by Covid-19 will mean that travel between Australia and Hong Kong will not resume for a long time.  The father and daughter bond will be sorely tested and, in all likelihood severed if she permanently relocates.

Some of these matters have been discussed in part above.  However, I would like to touch upon some that have not.  In particular, I accept that N is close to her paternal cousins, who are of similar age to her.  The father has a younger sister and a younger brother.  N spends a lot of time with them and she is said to be particularly close to her cousin, M, who is two years younger than her and who lives in the same apartment block as the father (the father’s sister’s child).  Both children are only children and the father said that their relationship is more akin to that of sisters than that of cousins.  I accept that these bonds are likely to be very important to N.  I also note the fact that although the mother has consistently stated that the paternal cousins will go to Sydney for schooling purposes, this has also been denied by the father.  It does not seem to me that this is something that can be relied upon one way or another.

39.  I further accept, and this will be discussed in more detail below, that after a rather rocky start that N is now doing better than before.  Although she is clearly closer to her mother than her father, she has a good relationship with her father who she sees and speaks to frequently and who remains an extremely important part of her life.  Any disruption to the current status quo should be approached cautiously.  I further note the father’s concerns about access, which shall also be discussed in more detail below

What would be the impact on the applicant (mother) either as a single parent or as a new spouse of a refusal of her realistic proposal?

40.  I accept that the mother is likely to be devastated if her application is refused.  She has said that she will seek leave to appeal and I accept that this is a likely outcome.  However, she has lived in Hong Kong for a considerable period of time, she is Hong Kong Chinese by birth and Hong Kong has been her home for most of her life.  She has friends here.  She is part of a Christian church here.  If she wished to, she could work from here as easily as in Sydney, especially if she is wedded to the idea of setting up an online XXXXXX business.  She could also visit Australia for extended periods of time either with or without N, in order to spend time with her father and other family members.  

41.  I also accept that the father’s relationship with N could be severely undermined if the relocation application is approved.  This is especially the case if travel continues to be problematic.  Although I accept that N might benefit from being in close proximity to other family members including her paternal Grandfather and some of her elder cousins (who are now aged 16 and 14), on her mother’s side, I also agree that this would not be sufficient to counteract the loss of her father and his wider family to whom N is very close. 

42.  Likewise, I accept that the father would be equally devastated if N was allowed to relocate.

The evidence of the experts

The Social Welfare Report dated the 2 November 2021

43.  It is trite but worth repeating for the record, that recommendations made to the court in social welfare reports although not binding are generally considered to be persuasive.  The reports are said to be the “eyes” and “ears” of the court. In the event that a court does not accept the recommendations made, as here, then reasons should be given.

44.  In this case the report was a little odd in that although it supported the relocation it made no recommendations at all for access save that at the end of the first term it suggested that N should spend more time in Australia over her first term break.  To that end the report concluded that:

55. For access arrangement, the difficulty in part was that Mr. C [the father] could not access N as close as the way she remained in Hong Kong. Virtual access is not as personally at time. Concerning the N's adjustment of her new school life and social peers, I inclined to suggest, during the first school term breaks, N spending more time in Australia instead of a 50:50 split.  It was hoped that both of Madam L [the mother] and Mr. C [the father] could learn to work out a practical access schedule together with N. 

56. As concluded, the Petitioner mother Madam L and the Respondent father Mr. C were encouraged to have empathetic understanding and co-operation to avoid the family child X be trapped between them.  They should work together for the best interests of the daughter throughout her developmental growth.  I, based on the above analysis, remarks and conclusion, would like to make the following recommendations for Your Honour's consideration:

i)    The family child N to be relocated to Australia, under the care and control of the Petitioner mother Madam L;

ii)   The Respondent father Mr. C, be granted access in accordance to the Access Schedule as agreeable.

Respectfully submitted.

45.  When I queried why there had not been any consideration at all of the impact that Covid might have on the situation, the SWO said that this had been deliberate and that she had tried to avoid the Covid question.  When I responded that the court could not simply ignore the impact of Covid, she seemed not to know how to respond.  She also said, during the course of her examination that the parties should learn to communicate better.  Whilst I would agree with this, it did not in any way seem to impact her recommendations.  She also disagreed that N was emotionally fragile, but did agree that she had some anxiety issues.

46.  All in all, I found the report to be rather unhelpful, as it was very clear that these particular parents would not simply be able to work out the access arrangements if the relocation was granted. Nor was it open to the court to simply ignore the impact of Covid.

47.  Further she seemed to have taken what N had said to her at face value.  In other words, because the child said she wanted to go, her views should be given weight, therefore she should be allowed to go.  She reported that not going was making N anxious.  There seemed to be no consideration at all of the fact that in reality many things might be making N anxious.  Although I accept that the SWO genuinely tried to report what she had observed, there was no fuller analysis of the situation other than that.  Given the complexity, I do not therefore intend to place weight on the recommendations made.

The reports from the Jadis Blurton Family Development Centre  

The First Report dated the 17 November 2017  

48.  As I referred to above the first report was ordered because the parties were unable to reach an agreement with respect to the day to day care arrangements for N.  The father favoured either a shared care arrangement or joint care and control, on a more or less 50:50 basis and the mother sought a more traditional one whereby she retained care and control and the father had defined access.  It is of note that both reports are in a similar format.  A group approach was taken with two or three examiners and a psychometrician to administer the psychological tests.  There are a significant number of tests attached to each report.  N was 6 years old when the first report was undertaken.  Of note is that the mother and father reported as follows:

In September 2016, N was very unhappy at having to repeat K2 and suffered teasing by her peers.  She was very reluctant to attend school, often cried and in the mornings before school hid under the table at home.  She also voiced, "I will jump out the window". She received weekly counseling with psychologist Mr. Lau at Hong Kong Sanatorium & Hospital and since December 2016 has received play therapy with Ms. Lora Lee.  In August 2017 N entered K3 at XXXX.

Currently, Ms. L reports that N seems very sad at times, cries (particularly after visits with her paternal grandmother) and continues to occasionally state she will jump out of the window. She further reports that N continues to show signs of anxiety when she has been apart from her.  However, she notes that N is no longer unhappy about attending school and is now accepted by her peers.  N has also progressed very well academically in K3.

Mr. C feels that N is emotionally well adjusted and has had no emotional difficulties in the past; however, he reports that Ms. L believes N has had previous emotional difficulties. He further believes that N's recent statements that she would jump out of the window have been taken too literally, and that she simply wants to get to her destination by the fastest route. He also reports that she is doing well in school.

49.  In so far as N herself is concerned the report stated

While there is no doubt that N loves both her parents, it is clear that her primary attachment figure is her mother, which is possibly a consequence of her mother's availability during her infancy and early childhood and the absence of her father due to his extremely demanding job.  In the foreseeable future, N is likely to express an increased desire to solidify her attachment bond with her father; however, at this point it is important that the relationship with her primary caregiver remains consistent as prolonged separations from main attachment figures, especially during stressful transitions, such as starting a new school or undergoing serious medical procedures, can be extremely distressing and confusing.  Access to both parents is important, yet it is even more important for N's parents to listen to and observe her behaviour for cues as to her readiness for change with regard to listen to and her behavior for cues as to her readiness for change with regard to altering the existing access arrangement so as to ensure that appropriate changes are facilitated in line with her developmental and psychological needs.

50.  The report concluded, inter alia, that the father’s access time to N should not be increased at this time.  Interestingly it also added that the parties should find better ways to communicate. It also recommended that N should have ongoing and weekly therapy to assist her with her “emotional literacy”.  Both Dr Blurton and Dr Craigen were signatories to this report.  

The Second Updated Report dated the 18 October 2021

51.  There was no dispute over who should be appointed to undertake the second report.  However, significant criticism has been made of it by the mother, after the event, including for example, the number of tests and types of tests undertaken as part of the overall approach.  For example, it was suggested that there was no need for the parents to undertake a test about domestic violence.  With respect, I do not agree.  This is a high conflict case. Matters of violence can often be hidden from view.  It was, with respect very sensible of the examiners to ensure, via a neutral test, that there were no other issues that had not been revealed to date.

52.  In conclusion the report did not support a relocation at this time.  In its Clinical Implications and Recommendations, it stated as follows:

CLINICAL IMPLICATIONS AND RECOMMENDATIONS

Pursuant to the Order of Her Honour Judge Melloy dated May 14th, 2021 an Updated Child Developmental Evaluation has been called for in relation to the mother's application to permanently remove the only child of the family, N, from the jurisdiction of Hong Kong to live in Sydney, Australia.

79. The L and C family appear to have made steady and significant progress towards becoming a functional and slightly more unified family system; N's relationship with her father has improved greatly and the current access arrangements appear to be running smoothly with little to no problems during handovers.  Therefore, with the help of the Family Law Court, Ms. L and Ms. C appear to have successfully negotiated and are appropriately navigating their shared parenting responsibilities.

80. Furthermore, there is evidence to suggest that over time, Ms. L and Mr. C are becoming less polarized with respect to their views on parenting and somewhat more aligned with respect to their awareness of the socio-emotional challenges N continues to face.

81. Although Ms. L and Mr. C still seem to approach parenting from very different perspectives, their styles remain complimentary as their individual strengths appear to counterbalance each other's weaknesses.

82. Relocation is one of the most highly rated stress-producing challenges than can be experienced by a family.  Moving can disrupt important relationships and friendships and the research indicates that the impact of losing contact with existing support networks, starting a new school, and making new friends arc most problematic for children, like N, predisposed to anxiety.

83. Furthermore, relocations are stressful on parents too and domestic help is not as accessible in Australia as it is here in Hong Kong.  Should Ms. L's own anxiety increase, possibly due to a combination of the stress involved with the physical act of relocating in addition to deficits/changes in her existing support structure, as a then possibly emotionally needy participant in an already clearly aligned parent-child relationship, there is some degree of risk with respect to propogating further, more serious psychological enmeshment and creating a pathological alliance with N against the absent parent.

84. Children enjoy better overall adjustment when they have quality relationships with both parents.  Better levels of child adjustment seen in intact families can be best accounted for by increased access to resources and social capital.  "Social capital refers to the benefit a child derives from the social and psychological resources available to him/her in a particular living environment, community, or family, especially the most significant relationships for the child.  It is derived from parents, extended family, peers, teachers, coaches etc. and is accrued in the form of positive models, trust, values, financial resources, commitment, instruction, discipline, and friendship. Some living environments will be richer than others in depth and breadth of social capital available " (Austin et al, 2013, pg 490).

85. Therefore, weakening the connection between N, her father, and her father's family/friends can be seen as a huge loss of social capital and is not recommended at this time.

86. Due to Ms. L's desire to relocate to care for her elderly father, and to provide N with, in her view, a better lifestyle and schooling opportunities, her request should be revisited at a time when (1) significant improvements in N's emotional wellbeing have been achieved and objectively measured, (2) travel bans and general travel uncertainties are no longer a global concern, and (3)Mr. C is in agreement with Ms. L that relocation and a change of schooling is in N's long-term best interest.

Although I tend to agree with counsel for the mother, that she would most likely cope with the proposed relocation and I have some reservations about paragraph 83 generally, other than that I tend to accept what is said here.  In particular, and given the recent Court of Appeal comments on this issue, I agree that a potential relocation should only be revisited once “travel bans and general travel uncertainties are no longer a global concern”.  I also accept that it is still premature to allow N to relocate at this juncture. I accept that although she has made good progress that she is still emotionally vulnerable. I also agree that it is important to maintain the status quo, including her very close relationships with her paternal cousins at this stage.

The outcomes in (2) and (3) must be considered in the overriding review of the child’s best interests as the paramount consideration.

Overall, would the relocation be in the best interests of N?

Other matters to be considered

How often would the father realistically be able to travel to Australia?

53.  The father had some real concerns about his ability to travel to Australia regularly, especially given the possibility of a change to the Australian tax regime.  He was criticized for this, but I accept that this is a genuine concern and that although he aspired to see N monthly, in reality this might be very difficult.

Is the mother likely to accommodate the father’s request for flexibility with respect to the access arrangements?

54.  My own experience of the mother has been that she has generally seemed resistant to any attempt by the father to increase access, including staying access.  On one occasion, when the parties had been in court arguing over the father’s application for holiday access, I had had to direct the mother NOT to go separately to the same place as the father and his family.  Counsel has argued that the mother has been accommodating throughout and that there is little evidence to support the suggestion that she can be difficult or non-communicative.  But there is some evidence.  Hostile communication going back and forth between the parties, the mother refusing to accommodate a 15-minute change in an access arrangement, inflexibility over some special occasions.  I tend to share the father’s concerns in this respect, i.e. that the mother could make access very difficult indeed if the relocation is approved. 

The views of N

55.  N had told the SWO that she would like to see me and on the 23 November she came to court, in the company of Dr Craigen, so that she could express her views to me directly.  She was charming. Quite petite and studious looking with glasses.  She was clearly nervous and blinked rather rapidly at times, but she was clear about what she wanted.  She wanted to go to Australia.  She was also under the possible misapprehension that other family and friends might also be going to school in Australia or possibly relocating there, in part because they had Australian passports.  She said that she was fine “quarantining” because she liked being in hotel rooms.  However, it is of note that she wasn’t sure if she had actually been in quarantine before.  Later it was confirmed that she had not.  This is of course a concern as those of us who have quarantined know that the reality is that the experience can be quite tough on both adults and children alike.  When I asked if there was anything that she wished to say if I ordered that she stay in Hong Kong, she was a bit thrown and said that she wasn’t sure, but she did raise the issue of possibly changing schools.  All in all, I greatly enjoyed meeting N.  But she was only 10 years old at the time and as one might expect she saw the issues in simple and child-like terms. I think the reality of the proposed relocation might be very different from her perception.  

Conclusion on the relocation

56.  Having considered all of the different factors it seems to me that on balance it would not be in the best interests of N to permit her to relocate to Sydney at this point in time.  I tend to accept that the application was and is premature, although I also accept that this is something that the parties may wish to consider again at a later date. Consequently, the mother’s summons dated the 5 October 2020 to relocate to Sydney, Australia shall be dismissed.

Should any further orders be made once that issue has been determined?

57.  As I said at the beginning of this judgment, there have been no further applications made with respect to access, in the event that N was to remain in Hong Kong. However, the father has said that he would support longer trips to Australia, so that the mother is able to spend longer periods of time with her family, either on her own or with N. This is to be encouraged and any further discussions about access going forward should bear that in mind.

Costs

58.  As this is a child related matter, I shall make an order nisi that there shall be no order as to costs, to be made absolute at the expiration of 14 days.  In so far as it is relevant there shall be certificate for counsel.

 ( Sharon D. MELLOY )
 District Judge

  

Mr. Giles Surman instructed by Messrs CRB for the Petitioner

Ms. Corinne Remedios instructed by Messrs Ip and Heathfield for the Respondent

  

110782-EN-2017-06-23

A v. B

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FCMC 9824/2015

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

MATRIMONIAL CAUSES

NUMBER 9824 OF 2015

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BETWEEN
 APetitioner
and
 BRespondent

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Coram: Her Honour Judge Sharon D. Melloy in Chambers (Not open to public)

Date of Hearing: 19 April 2017

Date of Judgment: 23 June 2017

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J U D G M E N T
(Maintenance Pending Suit/Interim Maintenance/
Litigation funding)

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Introduction

1.  This is an application by a Petitioner wife for maintenance pending suit pursuant to section 3 of the Matrimonial Proceedings and Property Ordinance Cap 192 (MPPO) and for interim maintenance for the only child of the family, a little girl called C who was born on the XX August 2011 under section 5 of the same ordinance. In addition, the wife seeks litigation funding. Further there is an issue concerning the costs arising out of the Discovery judgment dated the 25 January 2017. On that occasion costs were reserved for further directions at this hearing.

The main issues

2.  Consequently, the primary issue to be determined at this stage is how much should the husband pay to the wife for her interim provision and that of the child of the family in circumstances where to date he has made provision on a Charman basis to the tune of HK$3.75 million? Secondly, should the court entertain the wife’s application for litigation funding both in respect of her litigation costs to date and in relation to the cost of the proposed litigation going forward, from now until the date the FDR hearing, which is scheduled for the 29 September 2017. I have since also been told that the parties are due to engage Mr Justice Saunders in a private Financial Dispute Resolution procedure prior to the FDR date. Costs will be associated with this also.

3.  On the wife’s case she now needs HK$167,195 per month (originally HK$183,695 per month) plus the continuation of the husband’s undertakings in the sum of HK$50,372 per month plus litigation funding. Although there was some confusion surrounding the litigation funding, in broad terms the wife seeks a backdated sum of HK$1.7 million plus a further HK$121,000 per month spread over 9 months designed to take her up to the FDR hearing.

4.  The husband for his part has offered to pay HK$57,975 per month inclusive of an increased figure of HK$3,000 to cover all utilities. (He wishes to be released from his undertaking in this respect).  In round figures then, he offers HK$58,000 per month plus the continuation of his undertakings otherwise. In total this amounts to approximately HK$108,372 per month. He does not agree to contribute towards the wife’s legal costs save that he says that consideration should be given to selling a property owned by the parties jointly in South Horizons, in order to free up funds inter alia to cover both parties’ projected legal costs. The property, which is mortgage free and unoccupied at present, is said to be worth in the region of HK$8.34 – 8.42 million. The husband says that the net proceeds could be divided 50/50 or alternatively that they should be paid into court.

The wife’s summons

5.  In the wife’s restored summons dated the 25 October 2016 she set out her claim as follows:

1. the Petitioner’s Notice of Application for Ancillary Relief dated 25th September 2015 for the Respondent to pay the Petitioner maintenance pending suit for the benefit of the Petitioner and the child of the family, namely C, a girl, born on XX August 2011, in such manner and at such rate as the Court thinks fit, to be backdated to 1st August 2016, which was adjourned by the Court Order dated 24th November 2015 be restored for argument;

2. the Respondent do pay the Petitioner legal costs maintenance in such manner and at such rate as the Court thinks fit, to be backdated to the date of the Petition;

3. costs of and incidental to this application be to the Petitioner, to be taxed if not agreed.

6.  It is not disputed that to date the husband has paid the wife three payments totalling HK$3.75 million on a Charman basis. In other words, these funds are given to the wife on the premise that they will be deducted from any final award that she may receive. The payments were made on the following dates:

(1) 24 November 2015 – HK$1,500,000;

(2) 28 April 2016 – HK$1,500,000;

(3) 4 November 2016 – HK$750,000;

7.  These payments were also made on the premise that the husband undertakes to continue to make a number of other payments direct as follows:

A.   AND UPON the Respondent Undertaking to continue to settle the following monthly payments direct:

i. Mortgage repayment of the former matrimonial home known as … (“the Former Matrimonial Home”) (HK$25,891);

ii. Utilities of the Former Matrimonial Home (approximately HK$6,931), save and except gas;

iii. School fees of the child of the family, C, a girl, born on XX August 2011 (“C”) (approximately HK$15,900); and

iv. All vehicle expenses aside from petrol and car parking rental (approximately HK$1,650);

8.  Although the wife has accepted the Charman funds and the husband’s undertaking, it is her case that the husband has not maintained her and C appropriately during the period of separation. She now seeks an order for maintenance pending suit/interim maintenance/litigation funding, which by its very nature will not be deducted from any final award that she might receive. She says that the husband has deliberately and strategically kept her short of funds and that he is controlling by nature.

9.  This is of course denied by the husband, who in contrast maintains that the wife is spending recklessly and with little thought for the future. He says that her current spending patterns are not reflective of the way in which the parties conducted their married life. He likewise accuses the wife of upping her spending for litigation effect. In particular, he complains of extravagance on her part, including complaints concerning a 5th birthday party for C for 150 guests including 60 children. More recently he has taken issue with the wife staying in five star hotels in Hong Kong with C for short periods of time, seemingly for no good reason. There was also complaint over the purchase of two or three high end handbags in the sum of over HK$100,000 in total. The wife says simply that this is reflective of the standard of living enjoyed by the parties during the marriage and that the Charman funds are now gone – spent on litigation costs and general living expenses. She denies that she has been extravagant. 

Background 

10.  By way of background reference can be made to the judgment on discovery dated the 25 January 2017 and in particular to paragraphs 3 – 6, which in turn refers in part to the Ruling on Education dated the 22 August 2016.

11.  In short the parties met in 1996 in Hong Kong and married on the XX October 1999. Both sides of the family had emigrated to Australia in the 1980’s and both parties were educated in Australia as a result. It seems that the marriage was not a particularly happy one, with periods of separation and subsequent reconciliation. The parties finally separated for good in July 2014 when the husband moved out of the former matrimonial home.  On the 31 July 2015 the wife issued a divorce petition based on the husband’s alleged unreasonable behaviour. This was initially defended, but thankfully the parties were able to come to terms on this aspect of the case at least and in November 2015 the particulars were amended to ones that were more agreeable to the husband. The divorce petition then proceeded on the basis of mild unreasonable behaviour particulars. The decree nisi was pronounced on the 21 December 2015.

12.  The parties have one child C who will shortly turn 6 years of age. Unfortunately, there has been a great deal of disagreement concerning the arrangements for C and the parties have been in and out of court on a fairly regular basis since the petition was issued arguing over arrangements for her care, access and schooling. In the event that the parties are not able to reach consensus it is anticipated that this aspect of the case will need to be set down for trial. The father has made it clear that ultimately he would like an order for joint custody and either shared care or joint care and control. This is resisted by the mother, although there seems to be a tacit understanding that there should be an order for joint custody. However, to date no consent summons has been filed to this effect. It is hoped that the parties will now be able to narrow their issues with respect to C and that the matter can then be set down for trial without further ado. The parties have already attended one Children’s Dispute Resolution hearing and there has also been a further hearing on education.  

13.  There has also been a lot of disagreement with respect to the parties’ finances and there have been ongoing issues with respect to discovery. It is the wife’s case that the husband is a man of great wealth and that this wealth emanates from a number of family companies. She maintains her position that the husband has not been full and frank in his disclosure to date. On a smaller scale there have also been issues with respect to monies held by the wife, which she maintains are ultimately beneficially owned by her father.  

14.  The wife is presently a 46-year-old full time housewife. The husband is also 46 years old and he currently has a very senior role in a financial technology company. He is required to travel on a regular basis.

The law

Maintenance pending suit

15.  The law is well known and not in dispute. Section 3 MPPO Cap192 states that the only governing principle is that the court shall make such order as it considers reasonable in all of the circumstances of the case. Consequently, applications such as these are approached on a broad-brush basis. A detailed examination of the parties’ means may be examined at a later date at a full ancillary relief hearing if there is no agreement in the meantime, when there is then every opportunity to achieve fairness by means of set off. In other words, if there is any overpayment or underpayment that can normally be rectified at a final ancillary relief hearing.

16.  Both counsel have referred inter alia to the Court of Appeal decision in HJFG v KCY (CACV 127/2011, 28 October 2011, where the following principles were reiterated with respect to maintenance pending suit/interim maintenance applications:

a. The sole criteria to be applied in determining the application is “reasonable” which is synonymous with “fairness”.

b. A very important factor in determining fairness is the marital standard of living.

c. In every maintenance pending suit application there should be a specific maintenance pending suit budget which excludes capital or long term expenditure, more aptly to be considered on a final hearing.

d. Where the affidavit or form E disclosure by the payer is obviously deficient, the Court should not hesitate to make robust assumptions about his ability to pay.  The Court is not confined to the mere say-so of the payer as to the extent of his income or resources.  In such situation, the Court should err in favour of the payee.

17.  In so far as this particular case is concerned the reference to the marital standard of living previously enjoyed by the parties is particularly pertinent.

Litigation funding

18.  Currey v Currey [2006] EWCA Civ 1338 continues to be the governing authority on litigation funding in Hong Kong. This states inter alia that:

“the conditions for a ‘costs allowance’ are as follows:

(1) That the applicant spouse has no assets, or none that can reasonably be deployed (at para [19], [20]).

(2) That she can provide no security for borrowing, or none which can reasonably be offered (at paras [19], [20]).

(3) That she cannot reasonably obtain legal services by offering a charge on the outcome of the litigation (at para [20] and see Sears Tooth, per Wilson J).

(4) That she cannot secure publicly funded legal help ‘at a level of expertise apt to the proceedings’ (at para [20])”

19.  There is also a requirement to undertake an overarching enquiry:

At para [20], Wilson J held that the initial, overarching enquiry should be into whether the applicant for a costs allowance could demonstrate that she cannot reasonably procure legal advice and representation by any other means. Therefore, to the extent that an applicant has assets (as in C v C), she has to demonstrate that they cannot reasonably be deployed (whether directly or as the means of raising a loan) in funding legal services …… Other factors may well come into play.  The subject matter of the proceedings would always be relevant, as would the reasonableness of the applicant’s stance in the proceedings.

20.  Reference can also be made again to HJFG v KCY [2012] where it was stated that:

78. Section 3 of the Ordinance, of course, still required the Judge to be satisfied that any contribution towards the wife’s ongoing legal costs was reasonable.  That meant that he had to be able to conduct some analysis of the nature and extent and purpose of the contributions sought.  On the part of the wife, that required some breakdown of her anticipated costs.

79. Aside from the fundamental requirement of supplying a sufficiently detailed breakdown of anticipated costs, I am of the view that the following principles articulated by Wilson LJ in Currey v Currey should in future be adopted as providing prudent guidance to both judges and practitioners in this jurisdiction.

21.  It is therefore essential, in any application for litigation funding, that the applicant is able to supply the court with “a sufficiently detailed breakdown of anticipated costs”. Further

82. The period over which an allowance for legal costs was to be paid was also considered by Wilson LJ to be a factor of considerable relevance.  Applications should not therefore expect that an order that the allowance be paid until the final determination of all proceedings will be the inevitable order.  It was observed that if the application for an allowance for legal costs was made before the FDR hearing, it may well be wise to order that the costs allowance should fund the applicant only up to that hearing:

In that case the Court of Appeal ordered that the wife should receive HK$500,000 per month by way of a contribution towards her litigation funding, such sum to be paid until the FDR hearing or until further order.

22.  It goes without saying that the court has no power to make an interim lump sum order or an interim order for sale, to cover the cost of litigation or otherwise. Consequently, the husband’s suggestion that South Horizons should be sold or the wife’s claim for partial litigation funding in the sum of HK$1.7 million has to be seen in this light.

How much maintenance should the husband pay to the wife as maintenance pending suit for herself and interim maintenance for N?

The reasonable needs of the parties and the husband’s ability to pay

The wife’s needs

23.  During the hearing a schedule was helpfully produced summarizing the present position of the parties. The wife’s claim for maintenance pending suit/interim maintenance had dropped from her original claim of HK$183,695 per month to HK$167,195 per month, whereas the husband’s position was that he should contribute HK$57,975 per month in addition to his continued undertakings as set out in paragraph 7 above (subject to the caveat re the utilities). The schedule stated as follows:

General


Item Amount being claimed by the W (HK$) Amount being offered by the H (HK$)
Utilities 1,600 3,000 (all inclusive)
Food 15,000 7,500
Household Expenses 14,000 7,000
Car Expenses 25,320 6,000 (gas and car parking rental only)
Domestic Helper 4,500 4,500
TOTAL: 60,420 28,000

Personal

Item Amount being claimed by the W (HK$) Amount being offered by the H (HK$)
Meals out of Home 7,000 4,000
Transport (Octopus) 600 500
Clothing/Shoes 8,000 3,500
Personal Grooming 5,500 3,500
Entertainment/ Presents 2,500 1,000
Holidays 35,000 6,000
Medical/Dental 5,000 0 (covered by insurance)
Insurance premia 6,000 0
Others (mobile phone) 800 400
Others (church offering) 10,000 0
TOTAL: 80,400 18,900

Children

Item Amount being claimed by the W (HK$) Amount being offered by the H (HK$)
Tuition (including ECA) 7,975 7,975
School books and Stationery 1,200 1,000
Medical/Dental 5,000 0 (covered by insurance.  Our client will settle this at first instance if jointly appointed.)
Entertainment/ Presents 4,000 1,000
Clothing/Shoes 4,000 1,000
Insurance premia 4,200 0
Other Transport 0 100
TOTAL: 26,375 11,075
TOTAL of All Expenses: HK$167,195 HK$57,975

The items in dispute

Utilities

24.  The husband proposes paying the wife HK$3,000 per month on the premise that she be responsible for all of the utilities on the former matrimonial home and that he be released from his undertaking in that regard. At present the husband is responsible for paying for all utilities save for the gas bill plus the Government rent and rates. This proposal is a matter of some concern, given that the estimate for utilities of the former matrimonial home in the original order of the 24 November 2015 was for HK$6,931 per month. This was reiterated in the orders of the 28 April and 4 November 2016. The wife for her part maintains that in addition to paying the gas bill in the sum of HK$600 per month, that she is also responsible for a number of other expenses including bills for Hong Kong Telecom, Now TV and the internet and that altogether these total HK$1,600 per month. I accept what she says in this respect. In such circumstances I will not release the husband from his undertaking with respect to the utilities and I will allow the wife the additional sum of HK$1,600 per month sought. 

Food

25.  There is a dispute about the cost of food. The wife asks for HK$15,000 per month and the husband says that the cost should be no more than HK$7,500 per month. I have noted the fact that the husband’s original estimate for food for his household in his Form E and in his subsequent affidavit dated the 29 December 2016, is for HK$3,000 per month. This is probably reflective of the fact that he is required to travel for work. In addition, he now claims HK$10,000 per month for eating out and the wife claims HK$7,000 per month. On the face of it I accept that HK$15,000 per month for one adult and one child seems a little on the high side. Consequently, on a broad brush basis I will allow HK$10,000 per month. In doing so I accept that the wife and N enjoy and should continue to enjoy, good quality organic food stuffs.

Household expenses

26.  The wife seeks HK$14,000 per month and the husband offers HK$7,000 per month. The wife’s claim does appear to be on the high side and I am particularly concerned that her budget included the replacement of curtains and other appliances etc. which are more in the nature of a capital expense. In such circumstances I will accept the sum of HK$7,000 per month offered by the husband. It is of note that the husband has offered to reimburse the wife for the cost of the repair of pipes at the former matrimonial home in the sum of HK$13,132. In the event that that sum has not yet been paid I will hold the husband to his promise to make this payment. This should be included as an acknowledgment/agreement in the order. I will expect that payment to be made forthwith.  

Car expenses

27.  There has been considerable argument over the car expenses and in particular the cost associated with hiring a driver. It does not appear to be disputed that the parties originally had a part time driver which they shared with the husband’s mother. The husband strongly objects to paying for a full time driver, claiming that it was never intended that the parties would hire a driver on a long term basis during the marriage. He says that the part time driver was employed on a trial basis as there had originally been some concern about the availability of parking when dropping C off at school.  He also points out that the wife is a full time nonworking mother who also has a driving licence. The wife for her part says that as it is not now possible to share a driver with the husband’s family that she has no option but to hire a full time driver and that this is a reasonable expense in the circumstances.  Consequently, the wife seeks a staggering HK$25,320 per month inclusive of the cost of a driver in the sum of HK$16,250 per month for car expenses.

28.  Having considered all of the above it seems to me that on a broad brush basis it would be reasonable for the wife to employ a part time driver only. There may also be other alternatives including the possibility of employing a domestic helper who can also drive. Consequently, I will allow HK$7,000 per month for this expense, which is in line with the original estimate given by the wife. In addition, the wife seeks HK$9,070 per month for other car related expenses, whereas the husband offers HK$6,000 per month. It is also of note that the husband has undertaken to pay for all the vehicle expenses aside from the petrol and car parking rental in the sum of HK$1,650 per month. On the premise that this undertaking is to continue and on a broad brush basis I will allow the wife an additional sum of HK$8,000 per month.

The wife’s personal expenses

Meals out of the home 

29.  The wife claims an additional HK$7,000 per month for herself for meals outside of the home. As I have said the husband now seeks HK$10,000 per month but correspondingly a far less amount for food within his household. I accept that HK$7,000 per month for a non-working parent seems a little on the high side. I will allow HK$5,000 per month for this expense. 

Transport

30.  I accept that HK$600 per month for an octopus card is a reasonable sum and should be allowed. I too find it hard to understand why this sum could not be agreed.

Clothing/Shoes

Personal grooming

Entertainment/Presents   ;

31.  There has been a lot of dispute about this and the wife’s so called extravagant behaviour. In total the wife claims HK$16,000 for these items. The husband offers HK$8,000 per month. I will allow HK$12,000 per month.

Holidays

32.  There is also a significant dispute over this item. The wife claims HK$35,000 per month for herself and C or HK$420,000 per annum stating that the parties used to go on holiday up to 9 times per year, that she was used to travelling business class before she had C and that she was a X Diamond card holder. In contrast the husband says that they went on holiday a couple of times per year and that he used points to get upgrades.

33.  By any standard HK$35,000 per month is a very high figure indeed for holidays, especially when going forward it is anticipated that C will be spending half of her holidays with each of her parents. By the same token the sum of HK$6,000 per month proposed by the husband seems on the low side. I will allow HK$20,000 per month to cover the holiday costs for both mother and child.

Medical/Dental

34.  Given that the husband has insurance which presently covers the medical and dental requirements of both the wife and C, I will not allow the sum of HK$5,000 in addition. I do not think it reasonable on an interim basis for the wife to seek an emergency fund for medical and dental expenses. I will though hold the husband to his undertaking to reimburse the wife for these items. The wife suggests that the husband shall reimburse her within 7 days of her providing him with the invoice. This seems reasonable. Consequently, this undertaking shall be included in the order.  ;

Insurance premia

35.  The wife maintains that originally she had eight insurance policies for a number of different items that lapsed because of non-payment by the husband etc. She has since purchased other insurance policies. The husband says that these are not required if they are for medical/dental insurance and that if there is a savings element attached for C then this is something that should be discussed between the parties as opposed to being unilaterally imposed by the wife. Longer term I accept that the wife is unlikely to be able to claim against the husband’s corporate insurance for her own medical and dental needs. The husband says that he will nevertheless reimburse the wife for her reasonable expenses. I will hold him to that. This should include the cost of the wife’s counselling/therapy for herself. Consequently, the sum of HK$6,000 per month in addition shall not be allowed on an interim basis.

Others

36.  I will allow the additional sum of HK$800 per month for the wife’s mobile phone but I will not allow HK$10,000 per month as a church offering. It does not seem to me that it would be reasonable to expect the husband to pay this sum as part of an order for maintenance pending suit given that this is not actually a maintenance item.

C’s other expenses

Tuition and school books and stationery

37.  A sum of HK$7,975 per month is agreed in addition to the cost of school fees etc. I will allow an additional sum of HK$1,000 per month for school books and stationery as suggested by the husband.

Medical/Dental

38.  As with the mother’s claim I will not allow the sum sought for medical and dental expenses in addition to the provision by the father of insurance for this purpose.

Entertainments/presents

Clothing/shoes

39.  I will allow HK$5,000 per month to cover C’s other expenses. The mother seeks HK$8,000 and the father offers HK$2,000 per month. I accept that C probably goes to a lot of children’s birthday parties and that as is customary it would be expected that she buys a birthday present and card. This can become expensive. Further I accept that the mother will wish to continue to buy good quality clothes and shoes for C.

40.  The mother also says that she is paying for C’s therapy. For the avoidance of doubt it seems to me that the husband should be paying for these items on the same premise that he is also paying for C’s other medical/dental expenses. This should also be included in the husband’s undertaking and the mother should be reimbursed for these expenses within 7 days of production of the relevant invoice.  

Insurance

41.  As indicated above the cost of insurance premia for C will not be allowed.

The husband’s needs and his ability to pay

42.  There is little doubt that the husband can afford to pay a reasonable sum for maintenance. On his own evidence his salary, including a discretionary bonus for the year ended August 2016, amounted to HK$376,380 per month. In addition, he receives income from his rental properties plus dividends and interest on stocks and bonds. According to his Form E this amounts to an additional HK$154,700 per month (see paragraph 3.6 of the husband’s Form E). Thus the husband’s income appears to be in excess of HK$530,000 per month. In addition, he originally had cash savings of about HK$5 million plus stocks and shares of nearly HK$22 million plus properties etc. This is without the other significant assets that the wife maintains belong to the husband beneficially.

43.  The husband maintains that his own outgoings amount to HK$187,532 per month which at that stage included some provision for the wife and C which should be removed from the schedule for the purposes of this calculation. It seems to me that some of the husband’s own expenses are also capable of some reduction. However even without that the husband has additional income of approximately HK$343,500 per month. Thus I agree that he should be able to afford whatever the wife reasonably requires.

Summary

44.  In summary then the following sums shall be provided to the wife and C by the husband.

a)  ; The husband’s undertaking shall continue as set out in paragraph 7 above namely that he shall continue to pay:

a. ;  Mortgage repayment of the former matrimonial home known as … (“the Former Matrimonial Home”) (HK$25,891);

b. ;  Utilities of the Former Matrimonial Home (approximately HK$6,931), save and except gas;

c. ;  School fees of the child of the family, C, a girl, born on XX August 2011 (“C”) (approximately HK$15,900); and

d. ;  All vehicle expenses aside from petrol and car parking rental (approximately HK$1,650);

As indicated above this amounts to approximately HK$50,372 per month.

b)   Further the husband shall undertake to reimburse the wife for the cost of medical/dental expenses for herself and C, plus the cost of any therapy/counselling for herself and C within 7 days of the production of the invoice for the same.

c)  ; In addition, the husband shall pay the sum of HK$13,132 as a one off expense for the reimbursement to the wife for the cost of replacing pipes at the former matrimonial home. This sum shall be paid forthwith if it has not been paid already and shall be included in the order as an acknowledgment/agreement.

d)   The husband shall also pay maintenance pending suit/interim maintenance in the total sum of HK$90,500 per month. This is made up as follows:

   General

Utilities 1,600
Food 10,000
Household Expenses 7,000
Car Expenses 7,000
8,000
Domestic Helper 4,500
TOTAL: 38,100

Personal

Meals out of Home 5,000
Transport (Octopus) 600
Clothing/Shoes  
Personal Grooming 12,000 (in total for three items)
Entertainment/ Presents  
Holidays 20,000 *
Medical/Dental 0
Insurance premia 0
Others (mobile phone) 800
Others (church offering) 0
TOTAL: 38,400

Child

Tuition (including ECA) 7,975
School books and Stationery 1,000
Medical/Dental 0
Entertainment/ Presents 5,000 in total
Clothing/Shoes 
Insurance premia 0
Other Transport 0
TOTAL: 13,975
TOTAL of All Expenses: HK$90,475

Of this sum HK$47,500 shall be paid to the wife and HK$43,000 shall be paid to the wife as maintenance for C, such sum to be paid into the Petitioner’s bank account namely HSBC account no 0XX-0XXXXX-8XX. (*Please note that the allowance for holidays has been divided equally between mother and child)  

Litigation funding  

45.  The wife seeks the sum of HK$1.7 million being her outstanding legal costs as follows:

Invoice DateAmount (HK$)
27th April 2016 270,179
22nd June 2016 445,899
5th August 2016 472,882
15th September 2016 524,569
Total: 1,713,529

46.  Of this sum the wife says that she had to borrow from her father in order to pay for the first three bills and that the sum of HK$524,569 is still outstanding. She now wishes to repay her father and to settle the last bill. She also seeks funds to pay for her costs between the date of the hearing and the FDR hearing in the sum of HK$121,000 per month spread over 9 months. She estimates her legal costs going forward as follows:

39. ;  I am advised and verily believe that my estimated legal costs up to and including the FDR is HK$1,090,000 which are as follows:-

 ItemEstimated CostsHK$
1. Preparation and attendance of specific discovery hearing on 6th November 2016 Counsel’s fees – HK$250,000
Solicitor’s costs – HK$170,000
420,000
2. Professional charges of Messrs. KLC Kennic Lui CPA 120,000
3. Preparation and attendance of FDR Counsel’s fees – HK$300,000
Solicitor’s costs – HK$250,000
550,000
   Total: 1,090,000

If the discovery process is completed shortly after the specific discovery hearing, it is my hope that we will be able to proceed to an FDR in about 9 months.  Based on this assumption, the monthly legal costs maintenance I require is around HK$121,000.

47.  The first difficulty with the wife’s estimate is that it includes preparation for and attendance at the Discovery hearing given that that hearing was still pending at that time. I queried this during the hearing and was told that item 2 as well as item 1 related to the issue of discovery. Consequently, it seems to me that this should not now be included in the estimate of costs given that this is supposed to provide the wife with funding for and up to and including the Financial Dispute Resolution hearing. The issue of costs pertaining to discovery will need to be dealt with separately and although I appreciate that an order for costs is not the same thing as litigation funding meant to cover solicitor and own client costs, there will nevertheless be significant overlap. Thus I am only concerned with the third item – namely the estimate of HK$550,000 for preparation and attendance at the FDR hearing. ; 

The Currey protocol

(1) That the applicant spouse has no assets, or none that can reasonably be deployed (at para [19], [20]).

48.  I accept that the wife only has limited assets at her disposal and that these cannot be reasonably deployed for litigation costs going forward. She is living at the former matrimonial home that she owns jointly with the husband and there is no agreement that South Horizons be sold. In the context of this case I also accept that it would not be reasonable to expect her to sell South Horizons in the short term or to for her to continue to borrow funds from her father.

(2) That she can provide no security for borrowing, or none which can reasonably be offered (at paras [19], [20]).

(3) That she cannot reasonably obtain legal services by offering a charge on the outcome of the litigation (at para [20] and see Sears Tooth, per Wilson J).

49.  I also accept that it would be difficult for the wife to borrow from a bank or from other financial institutions given that she is not currently working and that the only forms of security that she might be able to offer are the same assets that she jointly owns as set out above. Just as it does not seem to me that it would be reasonable for her to sell the former matrimonial home or South Horizons I also accept that it would not be reasonable for her to borrow funds using these assets as collateral. I further accept that it would not be feasible for her to obtain legal services by offering a charge on the outcome of the litigation – which would be very unusual in a Hong Kong litigation context in any event.

(4) That she cannot secure publicly funded legal help ‘at a level of expertise apt to the proceedings’ (at para [20])”

50.  The wife applied for legal aid on the 8 September 2016 and perhaps not surprisingly in the circumstances was unsuccessful. Therefore, it is not possible for her to secure publicly funded legal help.

Overarching enquiry

51.  The wife also complains that she had no option but to take the stance that she has with respect to some of the issues before the court. She says that she should not be denied her choice of legal representation. I accept what she says in this respect. It is of note that both sides accuse the other of being unreasonable. For the avoidance of doubt I accept that the mother has had no choice but to seek further information from the father with respect to his finances. Both sides have also had some valid concerns with respect to C who continues to be caught in the “miserable middle”. 

52.  Having considered all of the above I will not make an order with respect to the sum of HK$1.7 million. I will though order that the husband do contribute the sum of HK$550,000 as litigation funding i.e. HK$110,000 per month for a five-month period to be back dated to the 1 May 2017 and to be paid directly on account to the wife’s solicitors for five consecutive months (May – September 2017). This should take the parties through to the FDR hearing. In the event that there is no settlement then this matter can be further reviewed. ; 

Backdating

53.  The wife asks that the maintenance be backdated to the 1 August 2016. However, given the fact that she requested and was given significant funds on a Charman basis, meant in part to cover her maintenance and litigation funding needs, it seems to me that it would not be appropriate to backdate the order to that date. By the time the matter came back to court the wife’s position, rightly or wrongly, was that she was out of funds. She did not want a further Charman order and was probably concerned about the impact that this might have on any final award. However, she did accept a further sum of HK$750,000 on the 4 November 2016, shortly after she restored this hearing on the 25 October 2016. In such circumstances there will not be significant backdating. The order will take effect from the 1 April 2017, credit to be given for any sums paid by the husband other than the Charman amounts.

Costs

54.  Neither party has been entirely successful here. However, given that the wife really had no option but to make this application, and the fact that she has beaten the husband’s open offer by a significant margin, I shall make an order nisi to be made absolute in 14 days’ time that the husband shall also pay the wife’s costs of and occasioned by this application on a party and party basis to be taxed if not agreed. There shall be certificate for all counsel involved.

55.  In addition, I would now like to deal with the issue of the costs arising out of the Discovery judgment, prior to the Financial Dispute Resolution hearing. It seems to me that this issue may be dealt with on paper. Consequently, leave is given for both sides to file and serve a short written submission on this issue within the next 28 days. 

Order

56.  Upon the Respondent’s undertakings and acknowledgment and agreements as set out in paragraph 44 above:

1) The Respondent shall pay maintenance pending suit to the Petitioner for herself in the sum of HK$47,500 per month, such sum to be back dated to the 1 April 2017 and thereafter to be paid on the 1st day of each succeeding month until further order, such sum to be paid into the Petitioner’s bank account namely HSBC account no 0XX-0XXXXX-8XX.

2) The Respondent shall also pay maintenance pending suit to the Petitioner in the sum of HK$110,000 per month as litigation funding for a five-month period commencing on the 1 May 2017 and thereafter to be paid on four further consecutive months, such sum to be paid directly on account to the Petitioner’s solicitors.  

3) The Respondent shall pay interim maintenance to the Petitioner for the child of the family in the sum of HK$43,000 per month the first payment to be backdated to the 1 April 2017 and thereafter to be paid on the 1st day of each succeeding month until further order, such sum to be paid into the Petitioner’s bank account namely HSBC account no 0XX-0XXXXX-8XX.

4) There shall be an order nisi to be made absolute in 14 days’ time that the Respondent do pay the Petitioner’s costs of and occasioned by this application on a party and party basis to be taxed if not agreed. There shall be certificate for all counsel involved.

5) The parties shall file and serve written submissions on costs arising out of the Discovery judgment dated the 25 January 2017 within the next 28 days.



 (Sharon D. MELLOY)
District Judge

Mr Richard Todd and Ms Sasha Allison instructed by Payne Clermont Velasco for the Petitioner

Mr J Chan instructed by Withers the Respondent

108612-EN-2017-01-25

A v. B

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FCMC 9824 / 2015

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

MATRIMONIAL CAUSES

NUMBER 9824 OF 2015

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BETWEEN

 APetitioner
and
 BRespondent

----------------------------

Coram: Her Honour Judge Sharon D. Melloy in Chambers (Not open to public)
Date of Hearing: 4 November 2016
Date of Judgment: 25 January 2017

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J U D G M E N T
(Discovery)

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Introduction

1.  This is a cross application for discovery. The wife seeks fairly significant further discovery from the husband on a “best endeavours” basis. The husband for his part says that he has disclosed all that he can subject to a couple of exceptions, which he is said to be working on. The husband also seeks limited further discovery from the wife, which has now been largely agreed.

2.  Given that this hearing was back in November I am proceeding on the premise that the parties may have now submitted further documents to each other, as indicated by them during the hearing. If not, and given the time lapse, I will now give both sides a fairly short time frame within which to comply. I have also taken the opportunity of reproducing the questions in issue, so that there is an easy point of reference going forward.   

Background

3.  In a short Ruling on education dated the 22 August 2016 I briefly set out the background to the party’s marriage as follows:

4. Both counsel have set out the background to this matter in their respective submissions. Mr Pilbrow S.C. for the mother says as follows:

(i)  Both the Petitioner’s and the Respondent’s families emigrated to Australia in 1984.  As a result, both parties received most of their secondary and the whole of their tertiary education in Australia.  The parties and C carry HKSAR and Australian passports.  Both parties returned to Hong Kong after graduation in 1992.  The parties met in 1996 and married in 1999.

(ii) C was born on XX August 2011 and will thus very shortly be 5 years old.  The Petitioner ceased employment in 2008 and so became C’s primary carer from birth.  The parties separated for 9 months or thereabouts in 2004 but reconciled.  From 2012 onwards, both parties, according to the Social Welfare Officer, accept that their marital relationship deteriorated.  In July 2014, the Respondent moved out of the matrimonial home and in July 2015, the petition herein was issued.

4.  It is the wife’s case that the husband comes from a very wealthy family and there has been references to significant sums of money which she says belong to him and his other siblings beneficially. The husband says that all such monies belong beneficially to his mother. There is also an issue concerning a trust. In addition, there are a number of bank accounts held in the wife’s name that she maintains are held by her for her father, who is the sole beneficial owner.

5.  There are three family companies on the husband’s side that are of particular interest to the wife namely D Limited, E limited and F Limited. It is accepted that the husband has never been a shareholder of any of these companies. However, he was until recently a Director of all three. Mr Todd for the wife sets out her position generally with respect to the husband’s financial position in his opening submission thus:  

12. The Respondent’s financial position

    Before turning to the detail of the questions it might be helpful to understand a little of the background here.  It is fully set out in W’s 7th Affidavit of 3rd August 2016.  This is found in Bundle A3 at p 993 to 1006.  We invite it to be read to give the proper context.  It sets out the background of H’s family and information about the family trust, namely The G Trust (“the Trust”).  It emphasises W’s belief that H is concealing his financial assets, particularly the funds from the sale of the shares in J Limited.  As stated in paragraph 16 (A3-997) the HK$400 million proceeds of sale (and 4.8% inter per annum) was distributed to the Respondent and his brother I as beneficiaries of the Trust in equal share by 5 equal instalments on 1 August 2007, 1 January 2008, 1 July 2008, 1 January 2009 and 1 July 2009 (“J Distribution”).

13. H would have been paid over HK$200 million from this distribution.  W believes he used the funds from the J Distribution to pay off the mortgage of the former matrimonial home (although with no apparent reason as he subsequently obtained another mortgage on the property).  He also seems to have purchased properties at Finnie Street and South Horizons without mortgage.  In his Supplemental Answers, the Respondent admitted that he received a sum of HK$9.6 million from his mother after the sale of the J Group shares but said that he did not receive any distribution from his family trust, The G Trust after the sale of the shares in or around 2008.  W does not believe that and suspects money has been “parked”.  She does not accept that H did not receive any distribution from the Trust and believes he received substantially more funds through the J Distribution which was handled by the various companies which were incorporated by the Respondent around 2007 to 2010.

14. Suspicion is yet further heightened by the timing of the Respondent’s removal as a beneficiary of The G Trust and recent removal as a direct of the family companies in May/June 2016.  No good reason has been given.  It was likely orchestrated so that the Respondent can claim that he has no interest and/or involvement in the Trust and/or the companies.  The Respondent also stated that he was removed as a director of K Limited on 29th June 2016.  That was the company which received the distributions from the Trust before it was transferred to the Respondent’s HSBC account through F Limited.  These events all happened within a matter of weeks of the sagacious Jonathan Mok reminding H that as a director of these companies, he could and should give disclosure - see his letter of the 21 April 2016 (B1-2 and the reference to B v B [1979] 1 All ER 801.

15. At the time of the Respondent’s Form E (2nd November 2015) the value of his shareholdings was said to be HK$21,826,517.  The reported dividend and interests from the stocks and bonds, HK$1.2 million per annum.  H also earns HK$321,000 per month.  His bonus is usually paid in August of every year.

6.  This description is of course disputed by the husband, but I accept that it is against this background that the wife poses her additional questions prior to FDR.

The law

7.  The law is straightforward and not in dispute.  Order 24 Rule 7 of the Rules of the High Court (“RHC”) is made applicable to Matrimonial Proceedings by Rule 3 of the Matrimonial Causes Rules (“MCR”).

Order 24 r 7(1) RHC states that:

Subject to rule 8, the Court may at any time, on the application of any party to a cause or matter, make an order requiring any other party to make an affidavit stating whether any document specified or described is, or has at any time been, in his possession, custody or power, and if not then in his possession, custody or power when he parted with it and what has become of it.

Further Order 24 r.8 RHC says:

On the hearing of an application for an order under rule 3, 7 or 7A the Court, if satisfied that discovery is not necessary, or not necessary at that stage of the cause or matter, may dismiss or, as the case may be, adjourn the application and shall in any case refuse to make such an order if and so far as it is of opinion that discovery is not necessary either for disposing fairly of the cause or matter or for saving costs.

8.  The above rules enable the Family Court to order a party to the proceedings to make discovery of specific documents or a class of documents.

9.  In CWK v YCHS, FCMC 6082/2014 dated the 18 November 2015, Deputy Judge George Own, as he then was, helpfully summarized the current law as follows:

21. The settled principles governing specific discovery have been succinctly summarised by Hon Ng J in a recent decision of Jade’s Realm Ltd v. Director of Lands (HCA No. 1509/2012) dated 9 January 2015 as follows :-

“(1) “There is no jurisdiction to make an order for specific discovery under RHC O.24 r.7 unless there is sufficient evidence or prima facie case that: (a) the documents or classes of documents exist which the other party has not disclosed; (b) the documents relate to a matter in issue in the action; and (c) the documents are in the possession, custody or power of the other party;

(2) Once it is established that those three prerequisites for jurisdiction do exist, the court has discretion whether or not to order discovery.

(3) The Court will not make an order unless the discovery sought is necessary either for disposing fairly of the cause or matter or for saving costs.

(4) The Peruvian Guano test remains the test of relevance.  A document is relevant if:

(i) it is reasonable to suppose that it contains information which may, not must, either directly or indirectly enable the party requiring the same either to advance his own case or to damage the case of his adversary; or

(ii) it is a document which may fairly lead the party to a train of inquiry which may have either of those two consequences.

(5) For the purpose of discovery, the pleadings have to be looked at broadly.

(6) The order must identify with precision the documents or categories of documents which are required to be disclosed, for otherwise the person giving the discovery may find himself in serious trouble for swearing to a false affidavit, even though doing his best to give an honest disclosure.

(7) Notwithstanding the Peruvian Guano test, ‘fishing’ is not allowed, and discovery should not be oppressive.

(8) The respondent may answer an application for specific discovery by an affidavit stating that he does not have the documents, and this will be conclusive at the interlocutory stage.”

10.  However in Cyberworks Audio Video Technology Ltd v Mei Ah (HK) Co. Ltd, unrep., HCA 677, 678, 2780/2006 and 658/2011, 15 April 2016, Registrar Lung, added at paragraph 20 as follows:

“20. The fact that Ds can simply say that they do not have the documents on affidavit should be final at the interlocutory stage under the above authorities may apply to some circumstances where the answer to the requests is simply no such documents were ever in possession, custody or power and no further explanation may be required. But this is not an absolute answer and the principle should not be applied mechanistically.”

11.  Further it goes without saying that both parties also have an ongoing obligation to make full and frank disclosure of their finances that is quite independent of applications of this type. Both parties to ancillary relief proceedings are under a continuing “duty to the court to make full and frank disclosure of all material facts to the other party and the court”: Livesey (formerly Jenkins) v Jenkins [1985] 1 AC 424 at 437H-438C per Lord Brandon of Oakbrook.

12.  As pointed out by Mr Chan for the husband the 18th edition of Rayden is also of some assistance as to the correct approach to be taken. At paragraph 17:30 and 31 it states as follows:

Discovery of documents: questionnaire

17.30   In ancillary relief proceedings discovery begins with service of the Form E and the documents which are required to be attached to the Form E, and any other documents necessary to explain or clarify any of the information contained in the Form E.  Thereafter discovery is by mutual request by means of a questionnaire served in advance of the first appointment, and by further questionnaire at a later stage of the proceedings with the court’s permission. Questionnaires can, like interrogatories, request information as well as seeking production of documents.  As part of its case management role, the court should regulate the extent of the disclosure of documents so that the exercise is proportionate to the issues in question, and to ensure that the discovery process does not become a fishing expedition approved by the court. An order for discovery can only be made against a party to the application. Discovery encompasses all documents which are or have been in a party’s possession, custody or power relating to matters in question in the application for ancillary relief; it is a two-stage process: where objection is taken to production of a document in the possession or power of a party, the proper course is for the existence of the document to be disclosed and objection then taken to its production.  A party giving discovery is not obliged to disclose any part of a document which is irrelevant to the issues, and it is established practice to redact irrelevant parts of the document provided that the irrelevant part could be covered without destroying the sense of the rest of the document or make it misleading.

Meaning of: documents in the possession, custody, or power

17.31   In the context of discovery, ‘documents’ are given a wide interpretation and cover all mediums used for storing information, e.g. tape recordings and material stored on disk and computer.  Documents that are or have been in a party’s (or his agent’s) possession or custody are self explanatory; documents that are or have been in a party’s power include documents which, though they are not in his possession or custody, he has a right to obtain them from the person who has them.  ‘Power’ in this context means the enforceable right to inspect or obtain possession or control of the document.  If, however, a party is unable to produce documents because his solicitors are exercising a lien over them pending payment of fees on account, a subpoena duces tecum may be served compelling the solicitors to produce the documents notwithstanding the existence of the lien.

13.  In addition Mr Todd for the wife made a number of references to the well known case of B v B [1979] 1 ALL ER 801. This held as follows:

Held - (i)  Under RSC Ord 24, r 7(1)a the court had a discretion to order disclosure of particular documents specified or described in the application of the party seeking discovery which were in the possession, custody or power of the other party to the suit.  Accordingly, company documents which were relevant to the matters in issue in the litigation, although in the legal possession of the company, might be required to be disclosed by a director of the company who was a party to the suit if they were or had been in his actual physical possession, even though he held them merely as servant or agent of the company, since in that circumstance they were or had been in his custody.

Furthermore, even where the relevant company documents had never been in his custody, he might be required to disclose them because they were within his power, in the sense that he had an enforceable right to inspect them or to obtain possession or control of them.  Whether company documents were within a director’s power was a question of fact depending on his shareholding, whether the minority shareholders were adverse to him, the constitution of the board of directors and whether they objected to disclosure of the documents.  Documents would not be within his power merely because he had a right under s 12b of the Companies Act 1976 to inspect them; but where the company was the director’s alter ego, so that he had unfettered control of its affairs, company documents would be within his power (see p 806 d e, p807 a b and d to h, p 809 a b and e and p 811 c to e, post); Alfred Crompton Amusement Machines Ltd v Customs and Excise Comrs (No 2) [1973] 2 All ER 1169 applied.

(ii) Where disclosure was ordered of relevant company documents in the custody or power of a husband who was a director of the company, the court’s discretion under RSC Ord 24 whether to order production of them should be exercised by balancing the relevance and importance of the documents and the hardship likely to be caused to the wife by their non-production against any prejudice likely to be caused to the husband or to third parties, such as other directors and shareholders, if an order for production was made.  However, it was not the court’s practice to order production of company documents where the board of directors of the company objected on affidavit to production, provided that the objection was not contrived to frustrate the court’s powers (see p 810 h j and p 811 e f, post).

(iii) Although, in an application by a wife for financial provision, disclosure of the audited accounts of a company of which the husband was shareholder would in most cases be sufficient disclosure, together with full disclosure of the husband’s financial records, there were cases where the court would go behind the company accounts and order discovery of specific company documents.  The documents relating to the husband’s entertainment and travel expenses and his expenditure on his family were relevant to the applications which were before the court, and since those documents had been in the husband’s custody, they should be disclosed and, subject to any objection to their production, produced for inspection.  However, the documents specified in cl 17 of the order did not appear to be relevant to the matters in issue, nor could it be said that the company was the husband’s alter ego so as to confer power on him to produce those documents.  Accordingly cl 17, save for certain provisions, would be deleted from the order (see p 810 c d, p 812 b to f and h and p 813 a, post).

With respect I agree.

Discussion

14.  I shall now turn to each party’s summonses and to the requests that remain outstanding for further discovery, which I will deal with in turn.

Wife’s outstanding Requests

Request 1

Notwithstanding the objection of the company, the Respondent do within 14 days answer the following questions in relation to (i) D Limited; (ii) E Limited; (iii) F Limited and (iv) save as already disclosed, other similar company(ies) comprising his family members as directors:-

(1) Please state the purpose of incorporation and the details of the directors and shareholders of this company.  Please also provide a copy of the certificate of incorporation, Register of Members and Register of Directors.

(2) Please provide a copy of the company’s audited financial statements since incorporation.  If the same is not available, please explain the reasons and provide the management account in support instead.

(3) Please confirm whether this company owns any real properties in Hong Kong or elsewhere in the world. If yes, please identify these real properties and provide details of their purchase (i.e. date of purchase, consideration and source of funding) and their present values and provide documentary evidence in support.

(4) Please confirm whether this company has any subsidiaries.  If yes, please identify the subsidiaries and provide copy of bank statements and audited financial statements since its date of incorporation.

15.  Mr Todd said that the husband’s initial response namely that a) he was no longer a director of the companies, b) that in any event he has never held a beneficial interest in them and c) that he has filed an affidavit to that effect, was insufficient. He argued that the wife was entitled to the information that had been in the husband’s custody, possession or power, during the period of time that he was a director, when he should still have had access to the information in question in any event.

16.  Mr Chan for his part pointed out that a great deal of information had been provided already and that the husband had given everything that he has on affidavit. He queries what else can be done is the circumstances and what in reality is still outstanding.

17.  I accept that the husband has largely dealt with sub paragraphs 1 and 2. In so far as sub paragraphs 3) and 4) are concerned he shall use his best endeavours to provide the information sought and to put his answers in affidavit form both as a former Director of the companies and generally. He is to provide whatever additional documents he can. For the avoidance of doubt he is not required to reproduce those documents that are already on the court record. He must also show what further attempts he has made in that respect. An affidavit in this regard shall be filed at court within the next 14 days.

Request 3

The Respondent do within 14 days gives full particulars of the purpose and sources/destination of the deposits/withdrawal in his HSBC Premier Hong Kong Savings and Foreign Currency Savings accounts (607-0XXXXX-888) including identifying the accounts and producing copies of banks statements as well as copies of the cheque deposits/withdrawals in respect of the following accounts where the deposits/withdrawals came from/to in which the Respondent has interest:-

(1) 2XX-2XXXXX-8XX

(2) 8XX-7XXXXX-0XX

(3) 4XX-1XXXXX-0XX

(4) 5XX-4XXXXX-8XX

The Respondent do within 14 days answer the following requests with supporting documentary evidence in respect of the sale of J Group shares in 2008 from the documents that are or will be in his possession:-

(i) Of the Respondent’s statement that the shares in J Group which were sold in or around 2008, the Respondent to confirm the number of shares sold, the amount of sale proceeds received and identify the recipient of the sale proceeds together with supporting evidence.

(ii) Of the statement that “the Respondent does not have a beneficial interest in the shares nor the sale proceeds arising therefrom as the same belongs to his mother entirely”, the Respondent to confirm whether he has ever received any amount or interest of and in the sale proceeds from the sale of the J Group shares, or any part thereof, whether directly or indirectly, with others in joint names with persons or bodies other than the Respondent, in the name of bodies corporate, pseudonym or numbers.  If so, the Respondent to produce details of the amount received together with supporting documentary evidence.

18.  The first part of this request is more problematic. The wife is asking the husband to produce further information in relation to accounts which are not held in his name. Further she has not identified the particular deposits or withdrawals going either into or out of the husband’s accounts that she has a difficulty with. The wife suspects that money is going in and out of other family held accounts and that the husband has a beneficial interest in those accounts. But as Mr Chan points out how can the husband be asked to disclose information about accounts that he does not legally hold? Unfortunately, this request seems very close to a fishing expedition and as such cannot be allowed. In any event I question the need for this level of disclosure prior to the Financial Dispute Resolution hearing. I accept that the wife may wish to revisit this line of enquiry if agreement is not reached and this matter proceeds to trial. In that event she will need to further particularize her request with reference to monies going in and out of the husband’s account.

19.  In so far as the second part of the question is concerned in sub paragraphs (i) and (ii), the husband has agreed to trace the records of distribution and thereafter their usage, so as to demonstrate that his mother is the sole beneficial owner of the G trust. When I asked during the hearing how quickly this and other tables could be produced I was told, when pushed, that he could do so within the next 42 days. That time has now elapsed. Consequently, this and other such tables shall now be produced, in the event that they have not been produced already, within the next 14 days.

Request 5

The Respondent do within 14 days answer the following questions with supporting documentary evidence in respect of G Trust from the documents that are or will be in his possession:-

(i) The Respondent to produce copies of all Letters of Wishes or Memorandum of Trust of The G Trust or their equivalent copy by the Settlor and/or Protector of the Trust to the Trustees of The G Trust.

(ii) The Respondent to produce copies of the Annual Accounts of The G Trust since 1 January 2010 to date.

(iii) The Respondent to give particulars of all advances, distributions and/or other amounts paid to or on behalf of all or any of the beneficiaries of The G Trust by the Trustee of The G Trust since 1 January 2010 to date.

(iv) In respect of all amounts under Request 80 above which were paid to the Respondent directly or indirectly:

(a) Please state into which bank account(s) the same were paid, identifying the date and amount of each payment; and

(b) Please identify all such amounts in the bank statements produced or to be produced.

20.  As indicated above the concern here is that the husband appears to no longer be a beneficiary of the trust. According to Mr Todd they now know that the husband was a beneficiary on the 8 April 2016 but that by the 25 May 2016 he had ceased to be a beneficiary. Further details have not been forthcoming. Mr Todd asks that the husband provide all the necessary information until such time as he was excluded as a beneficiary, on a best endeavours basis. The husband for his part says that he has provided what he can and that in any event as a beneficiary of a trust is not entitled to sight of the relevant Letters of Wishes. Mr Chan adds that his client does not have this document in any event. There is therefore no basis upon which he can comply with the request that has been made. I accept what he says in that respect.

21.  In addition, in so far as sub paragraphs (iii) and (iv) are concerned the husband has again offered to put “…together a table, setting out the various distributions of G Trust to the best of [his] knowledge and information which [he] handled for [his] mother, to prove all such distributions were expended for [his] mother’s benefit and that [he] had and [has] no beneficial interest in these funds at all. Again in the event that this information is still outstanding I will make an order that the husband produce the same within the next 14 days. I do not intend to make any other orders with respect to Request 5 save that the husband is to use his best endeavours to comply with sub paragraph (ii) to the extent that he has not already done so. Again for the avoidance of doubt such information shall be provided in the same affidavit which is to be filed and served within the next 14 days.  

Husband’s outstanding request

22.  The husband has a number of requests which relate to the provision of outstanding documents under question 1, question 2.1, question 3.1(a) and question 3.1(c) of his third questionnaire dated the 6 June 2016 as follows:

Part 2- Assets

1.   In respect of the matrimonial home at XXA, Tower X, X Towers, Tin Hau, Hong Kong, please provide documentary evidence in support of the Petitioner’s claim that she made a total of HK$5.8million as contribution to the downpayment (around HK$4million) and renovation expenses (around HK$1.8millin) in relation to this property as per the Petitioner’s Answer dated 30th December 2015.

Part 2.3 - Bank Accounts

2.1   Please state the source, including but not limited to the identity of the recipient(s)/payer(s), and purpose of the following deposits or withdrawals in the following account(s) and provide documentary evidence to support the answer:

for CheckLink Savings 11XXXXXX HKD


Date

Description

Deposit (HKD)

Withdrawal (HKD)

07/04/2014

Transfer
 
21,302.18

10/04/2014

Cash Withdrawal
 
20,000

3.1   Please state the source, including but not limited to the identity of the recipient(s)/payer(s), and purpose of the following deposits or withdrawals in the following account(s) and provide documentary evidence to support the answer:


Date

Description

Deposit (HKD)

Withdrawal (HKD)

19/06/2014

GOLD/
EXCHANGE CREDIT

58,057.60
 

Date

Description

Deposit

Withdrawal

13/09/2013

DEPOSIT

AUD18,900
 

24/10/2013

WITHDRAWAL
 
AUD17,500

06/12/2013

DEPOSIT

AUD106,000
 

10/12/2013

WITHDRAWAL
 
AUD105,968.78

13/03/2014

DEPOSIT

AUD18,900
 

23.  The wife has answered either that she has not been able to find the relevant documentary evidence yet and that she needs more time or that she is checking with the bank or that she could not recall. Initially the husband asked the wife to produce these outstanding documents within the next 28 days. Infact given the length of time since the hearing the wife has also had longer than that to produce these documents in any event. Mr Todd also accepts that she should now be ordered to produce them. Consequently, the wife shall now produce these outstanding documents within the next 14 days, to the extent that they have not been produced already.

Question 5 and 11

5.  From the bank statements or other records provided or to be provided of the following accounts:

(a) Citibank

(i) Savings (and Investment) Account no. 1XXXXXXX;

(ii) Checking Account no. 1XXXXXXX;

(iii) Call Deposit Account no. 8XXXXXXX;

(b) HSBC China Savings Account no. CN-HSBC-1XX-1XXXXX; and

(c) Westpac Bank Savings Account no. 6X-1XXX.

Please identify:

(a) all incoming deposits into the accounts coming from the Petitioner or any funds or accounts held in her name (identifying the source account and records);

(b) all incoming deposits into the accounts that the Petitioner alleges comes from her father, together with documentary support evidencing that such funds come from the Petitioner’s father;

(c) all incoming deposits into the accounts that the Petitioner alleges comes from person(s) other than the Petitioner or her father, together with documentary support evidencing the origins of such funds;

(d) all outgoings or withdrawals from the accounts that the Petitioner directly or indirectly went to or through the hands of the Petitioner or any account held in her name (identifying such account and records);

(e) all outgoings or withdrawals from the accounts that the Petitioner alleges went to her father, together with documentary support evidencing that such funds did in fact go to the Petitioner’s father;

(f) all outgoings or withdrawals from the accounts that the Petitioner alleges went to person(s) other than the Petitioner and her father, together with documentary support evidencing the destination o f such funds; and

(g) all funds or monies originating from the accounts that the Petitioner alleges went to pay for or discharge her father’s expenses, together with documentary support evidencing that the money has in fact been so used.

11.   From the bank statements or other records provided or to be provided of the following accounts:

(a) Citibank Bonds Brokerage Service Account no. 2XXXXXXX;

(b) HSBC Premier

(i) Investments Account no. 0XX-0XXXXX-8XX;

(ii) Foreign Currency Savings Account no. 0XX-0XXXXX-8XX;

(c) ANZ Bank

(i) Term Deposit Account no. 9XXX-5XXXX;

(ii) Term Deposit Account no. 9XXXX-2XXXX; and

(iii) Term Deposit Account no. 9XXX-6XXXX;

, please identify:

(d) all incoming deposits into the accounts coming from the Petitioner or any funds or accounts held in her name (identifying the source account and records);

(e) all incoming deposits into the accounts that the Petitioner alleges comes from her father/aunt (as the case may be), together with documentary support evidencing that such funds come from the Petitioner’s father/aunt;

(f) all incoming deposits into the accounts that the Petitioner alleges comes from person(s) other than the Petitioner or her father/aunt (as the case may be), together with documentary support evidencing the origins of such funds;

(g) all outgoing or withdrawals from the accounts that directly or indirectly went to or through the hands of the Petitioner or any account held in her name (identifying such account and records);

(h) all outgoings or withdrawals from the accounts that the Petitioner alleges went to her father/aunt (as the case may be), together with documentary support evidencing that such funds did in fact go to the Petitioner’s father/aunt;

(i)  all outgoings or withdrawals from the accounts that the Petitioner alleges went to person(s) other than the Petitioner and her father/aunt, together with documentary support evidencing the destination of such funds;

(j)  all funds or monies originating from the accounts that the Petitioner alleges went to pay for or discharge her father/aunt’s expenses (as the case may be), together with documentary support evidencing that the money has in fact been so used.

24.  It is the wife’s case that she will need to instruct an accountant to trace the movement of the funds in question and that she needs further litigation funding in order to do so. Consequently, it has been agreed that both of these questions shall be adjourned to the maintenance pending suit hearing which has now been listed for the 19 April 2017 at 10:30 am.

Question 6 and 12

6. Please provide the account opening documents of the following banks:

(a) Citibank

(i) Savings (and Investment) Account no. 1XXXXXXX;

(ii) Checking Account no. 1XXXXXXX;

(iii) Call Deposit Account no. 8XXXXXXX;

(b) HSBC China Savings Account no. CN-HSBC-1XX-1XXXXX; and

(c) Westpac Bank Savings Account no. 6X-1XXX.

12. Please provide the account opening documents of the following accounts:

(a) Citibank Bonds Brokerage Service Account no. 2XXXXXXX;

(b) HSBC Premier

(i) Investments Account no. 0XX-0XXXXX-8XX;

(ii) Foreign Currency Savings Account no. 0XX-0XXXXX-8XX;

(c) ANZ Bank

(i) Term Deposit Account no. 9XXX-5XXXX;

(ii) Term Deposit Account no. 9XXX-2XXXX; and

(iii) Term Deposit Account no. 9XXX-6XXXX.

25.  I accept that as the legal owner of the accounts in question that the wife is entitled to ask for these documents. In the same way as the husband, it seems to me that the wife needs to use her best endeavours to obtain such documents and to file an affidavit exhibiting the same within the next 14 days.

Question 7

7.  Please provide all documentary evidence showing the source of the initial funds deposited/transferred into the following accounts, if the Petitioner’s allegation is that those funds came from person(s) other than herself:

(a) Citibank

(i) Savings (and Investment) Account no. 1XXXXXXX;

(ii) Checking Account no. 1XXXXXXX;

(iii) Call Deposit Account no. 8XXXXXXX;

(b) HSBC China Savings Account no. CN-HSBC-1XX-1XXXX;

(c) Westpac Bank Savings Account no. 6X-1XXX.

26.  Likewise, I also accept that this is a relevant question and one that needs to be answered on the same premise. In particular, the wife has said that she will reactivate her HSBC China savings Account in order to obtain the necessary documentary evidence to supplement her answer. This now needs to be done and I therefore make an order that the wife provide the information in paragraph 7 on the same basis as above.

Costs

27.  Costs shall be reserved in the first instance to the maintenance pending suit hearing for further direction.

Further directions

28.  Further and for the avoidance of doubt there shall be a further First Appointment hearing on the 19 April 2017 at 10:30 am. Both parties do personally attend that hearing.

 ( Sharon D. MELLOY )
 District Judge

  

Mr Richard Todd instructed by Mayer Brown JSM for the Petitioner

Mr Jeremy Chan by Withers for the Respondent


a Rule 7(1), so far as material provides: ‘… the Court may at any time, on the application of any party to a cause or matter, make an order requiring any other party to make an affidavit stating whether any document specified or described in the application or any class of document so specified or described is, or has at any time been, in his possession, custody or power, and if not then in his possession, custody or power when he parted with it and what has become of it.’

b Section 12, so far as material, is set out at p 807 e, post

105883-EN-2016-08-22

A v. B

HTML content

FCMC 9824/2015

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

MATRIMONIAL CAUSES

NUMBER 9824 OF 2015

----------------------------

BETWEEN
 APetitioner
and
 BRespondent

----------------------------

Coram: Her Honour Judge Sharon D. Melloy in Chambers (Not open to public)
Date of Hearing: 16 August 2016
Date of Ruling: 22 August 2016

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RULING
(Choice of schools and access arrangement)

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Introduction

1.  There are two applications before me that now require determination. The first dated the 26 April 2016 is an application by the Petitioner mother for leave for the child of the family, a little girl called C who was 5 years old on Saturday to attend a new school. The mother wishes the child to attend year one at the School Q. The father for his part wishes her to remain at School R and to retake K2. There are difficulties with both suggestions which I will go into in more detail below.

2.  Time is of the essence with respect to the schooling issue given that the School Q term starts on Monday the 22 August and the School R term commenced last week. I directed that C start at School R as I could see little harm in her doing so. This was however without prejudice to any final decision on the matter.

3.  The second application is the father’s summons for overnight staying access from after school on Friday each week until 6:00 pm on Sunday or on any other two nights during the week. This summons is also dated the 26 April 2016.    

Background

4.  Both counsel have set out the background to this matter in their respective submissions. Mr Pilbrow S.C. for the mother says as follows:

(i) Both the Petitioner’s and the Respondent’s families emigrated to Australia in 1984.  As a result both parties received most of their secondary and the whole of their tertiary education in Australia.  The parties and C carry HKSAR and Australian passports.  Both parties returned to Hong Kong after graduation in 1992.  The parties met in 1996 and married in 1999.

(ii) C was born on XX August 2011 and will thus very shortly be 5 years old.  The Petitioner ceased employment in 2008 and so became C’s primary carer from birth.  The parties separated for 9 months or thereabouts in 2004 but reconciled.  From 2012 onwards, both parties, according to the Social Welfare Officer, accept that their marital relationship deteriorated.  In July 2014, the Respondent moved out of the matrimonial home and in July 2015, the petition herein was issued.

(iii) C started attending School R commencing in September 2013.  She started in K1 in 2014 and K2 in 2015. Normally, C, would be set to commence K3 this month, but the school has indicated that, if she is to continue at School R, then they would require her to repeat this year in K2.  The Petitioner believes that the environment and teaching methods of School R do not suit C at this time and wishes her to attend an international school, namely School Q.  It appears to be common ground that C should attend School S in Sydney, Australia in Year 7, where she had already been accepted.

(iv) With the assistance of a mediator, the parties were able to agree an interim arrangement for the Respondent’s ongoing access to C.  C continues to live at the former matrimonial home with her mother.  The access arrangements so agreed were incorporated into an order of the Court dated 28th December 2015 (A1/171 Tab 13).  In accordance with that order, the Respondent has access as follows:

(a) from 8:30 - 9:00 a.m. to take her to school 2 times per week provided that he notifies the Petitioner of the days he wishes to take C to school by 8 p.m. on the Sunday previous.  If he has to miss such access due to his work schedule, he is entitled to make-up access within the following week.

(b) on Thursdays from 5:30 - 8:30 p.m. for dinner.  Again, if he is unable to exercise such access due to work requirements, he is entitled to make-up access within the next 7 days.

(c) 2 extra access times each month between 5:30 - 8:30 p.m. provided he gives 7 days prior notice by 8p.m. on a Sunday informing the Petitioner of which day during the forthcoming week he would like to exercise such access.

(d) Access on Saturdays from 9:30a.m. to 8:30 p.m.

(e) Single public / school holidays on an alternating basis.

(f) Staying access for half the school holidays.

(v) The Respondent seeks to vary such access.  His proposals to the extent of variation have changed since the issue of his summons.

In the interests of saving some time I have taken the liberty of reproducing Mr Pilbrow’s shorter summary in full as set out above.

The law   

5.  The law governing applications concerning the education of children in Hong Kong is the same as that for the arrangements for children generally. For the avoidance of doubt I will repeat the relevant section namely s 3 Guardianship of Minors Ordinance, Cap 13, which states that:

(1) In relation to the custody or upbringing of a minor, and in relation to the administration of any property belonging to or held in trust for a minor or the application of the income of any such property-

(a) in any proceedings before any court (whether or not a court as defined in section 2) the court -

(i) shall regard the best interests of the minor as the first and paramount consideration and in having such regard shall give due consideration to -

(A) the views of the minor if, having regard to the age and understanding of the minor and to the circumstances of the case, it is practicable to do so; and

(B) any material information including any report of the Director of Social Welfare available to the court at the hearing;

6.  Both sides have also referred me to a number of different cases on point which I have taken into account when coming to my decision.

Discussion

7.  I shall now turn to consider the issues, the law and the parties’ evidence as set out in their affidavits and respective Children’s Forms – Form J.

Choice of schools

8.  As set out above it seems to me that there is some difficulty with each suggested school. As indicated during the hearing I also intend to direct that C have an educational assessment in order to rule out any possibility of a learning issue. I will also expect C to have some kind of therapeutic support going forward. Dr Y has diagnosed her with having a mild separation anxiety disorder and this will need to be addressed. Likewise I will expect both parties to have some therapy/counselling as recommended by Dr Y. For the avoidance of doubt Dr Y should not take on the role of the recommended therapist or counsellor. 

9.  I accept that if C enrols at School Q that that will mean that she will be effectively barred from applying later for either a local school or a Direct Subsidy School. Both of these options would normally require a pupil to have completed K3 prior to entry. Therefore if she moves to School Q she will of necessity have to remain in an international school environment for the remainder of her primary school years.  

10.  As C is presently one of the youngest in her class, if she repeats K2 that she will then become one of the oldest in her class. Consequently she will not proceed to P1 until she is over 7 years of age. School R identified this as a possible issue when they wrote to the solicitor’s for the mother on the 4 July 2016 inter alia in the following terms:

Our recommendation that C repeat K2 in the year 2016/17 was made with C’s best interest at heart.

Over the years, we have had a number of students repeat their K2 year.  It is our experience that these students have benefitted from doing so, not only in terms of their academic progress, but also in terms of their self-confidence and social skills.  The students who repeat will typically be young for his/her age group, and repeating the year gives them the opportunity to catch up with their peers in any aspects in which they may be less advanced, with less pressure than they otherwise would feel if they continued onto K3 immediately.  Amongst other things, the students who have repeated have enjoyed a broader range of options for primary school as a result of the additional time spent in kindergarten. As to the possible emotional impact which repetition of a year may have on a child, the school has in past cases always been sensitive to this issue, and our teachers and staff work together to ease the child into his/her new class. Repeating a year is not intended to be some form of “humiliation”, but rather, an opportunity for the child to become more confident in his/her abilities. The feedback we have received from the parents of students who have repeated their K2 year in the past has generally been very positive, and they have been glad to have had the opportunity of repeating.

The school believes that C is a student, who would benefit from repeating the K2 year. Hence we made the recommendation that we did (and not by reason of some “favour” to C’s paternal family, as you suggest).  Previously, we had not made the recommendation to repeat as C is August-born, so we had some concerns as to whether this would lead to her subsequently being over-aged for the primary school intake in September 2018.  We have since looked further into this following the case of another student who will be repeating a year and we understand that whilst government and aided schools may have restrictions as to the age range of students which they can accept, other schools are not so bound.  Nevertheless, as we have pointed out to C’s parents, this does rule out some primary schools from consideration in the future.  On the other hand, this should be weight against the range of primary schools which would accept C if she were to continue on with K3 at this stage.

We are aware that C has been accepted by School S in February 2024.  I would make the general observation that since the start of the academic year in Australia (January/February) differs from that in Hong Kong, students from Hong Kong going to school in Australia will in any event either be repeating or skipping part of a year’s schooling, so there is no direct correlation between the school grade which a student is leaving in Hong Kong and the grade which he/she is entering Australia.  If School S has already accept C for entry in 2024 then whether or not she has to repeat K2 should not be of any real concern.  What will be important is whether C is sufficiently prepared for her new school, which will depend in part on which primary school C attends and the standard of educational and care she receives there.

11.  According to the document produced by the mother’s legal team after lunch, C may be afforded a low priority in the allocation system in the Primary One Admission System in the event that she is “over aged”. This document stated as follows:

Primary One Admission System

1. All children with the right of abode in Hong Kong and reach the age of 5 years 8 months (as at 1 September of the year of entry to P1) are eligible to participate in the POA System except those who are already attending a primary school or have been allocated a P1 place previously. Direct Subsidy Scheme (DSS) primary schools, private primary schools and primary schools of the English Schools Foundation are excluded from the POA System.  Parents who wish to send their children to these schools may apply direct to the schools.

2. Entry to primary schools will as at present be compulsory from the start of the school year following the child’s reaching the age of 6, but will be permitted from 5 years 8 months.  It is not intended, for the time being, to allow new entrants to Primary 1 to join the class other than at the beginning of the school year. The effect of this in practice is that children entering Primary 1 will range in age from 5 years 8 months to 6 years 11 months. Parents will be encouraged, where applicable, to take advantage of the opportunity to enter their children before the age of 6.

3. To ensure that this relatively wide age range does not become even wider, it is intended to enforce rigorously the regulations governing the age of entry to primary school described in paragraph 2.13.  In Chapter 7 the intended method of allocating Primary 1 school places, which is primarily based on parental choice, is described.  Any over-age children applying for Primary 1 places will be accorded very low priority in this allocation.

For the avoidance of doubt I accept that to be the case.

12.  Thus if C repeats K2 at School R she is likely to be limited in her choice of schools for primary 1, in the event that her parents wish her to be educated in the local system. The father has indicated that this may not be the case and that he would be interested in reapplying for School T (C’s application this year was not successful). In any event the parents would still have a relatively wide choice as they would still be able to apply for Direct Subsidy Schools, private local schools, English School Foundation schools and other international schools.    

The mother’s case

13.  In a nutshell the mother’s case is that she had been informed by School R that C was struggling academically and that the parents should consider other alternative schools for her. Consequently the parties applied to School T and School Q. At that stage there was no suggestion that C could repeat K2. In any event the mother is now concerned with the stigma attached to C repeating a year. She points out that School R is a very academic traditional school and she believes that C would do better in an international school environment. She believes that the father and/or his family have pressurized School R to put forward the proposal that C repeat a year.

14.  The father for his part is very concerned that C may be removed from a school with a proven track record to one that is new on the market. He is strongly of the view that the parents should take up the offer from School R and that this is the very best alternative at the present time. He denies that he or his other family members have asserted any pressure on School R and he seems somewhat dismayed by the mother’s insistence that C start School Q today.

The reports  

The Social Investigation Report

15.  Recommendations made to the court in social welfare reports and psychologist reports although not binding are generally considered to be persuasive. In this instance there were two reports from the social welfare officer, the latter being the most important for the purposes of this Ruling. This is dated the 15 July 2016. In addition the court benefitted from a report from a psychologist – Dr RY dated the 8 August 2016.

16.  The social welfare officer helpfully provided an in depth report from direct contact with staff at School R as follows:

15. C studies K.2 in School R at present.  She attends English class in the morning session.  According to Ms M, C’s English class teacher, C showed improvement, but not significant, on her academic performance, in recent few months. Comparing the assessment arrangement for two terms of K.2, C needed Ms M to sit beside and offer assistance to her in Term 1 while she could do assessment paper by herself in Term 2.  C managed appropriately her listening assignment or story telling activities.

16. However, C was not confident to ask for questions; and to come to seek help from teacher.  C was required to do a lot of worksheets in class, but she usually completed it beyond schedule time.  C was far behind the basic reading requirement of the school syllabus.  Ms M elaborated that the school syllabus consisted of large amount and high standard of reading work or vocabulary building.  She considered C to reach less than half of the requirement.  She observed C spent much more time than others in vocabulary work.  Ms M furthered that she offered assistance to C individually in class for about 5 mins daily; gave much reinforcement to C and allowed her parents keeping the student’s reading cards for longer periods of time for revision at home.  She considered no other extra assistance could be offered to C in classroom and opined that C’s present performance was an individual learning difference and partially influenced by her previous unpleasant mood resulted from parental separation.  C needs much assistance in catching up the present English syllabus.  On the other hand, Ms M observed that C showed stable mood for changing class routine and was helpful to other classmates.

17. C attends Chinese class in the afternoon session.  According to Ms W, C’s Chinese class teacher, C was attentive in class and cheerful with classmates.  She was observed to have average learning ability and neat hand writing.  C was weak in identifying vocabulary in the last term, but she showed significant improvement in recent assessment in June 2016.

18. However, C was passive in reading vocabulary in class due to lack of confidence.  With much encouragement, C was willing to read the assigned words.  Hoping to provide her more practice in class, C was selected to play the reading games several more time, but she showed anxious reaction for playing.  She failed to meet the vocabulary dictation requirement.  When she failed to perform the required work, C easily cried in class.  At present, C did not catch the academic requirement of the school syllabus.  Ms W elaborated that she spent much time in teaching Maths and General study in class with no class assignment. C needed to complete homework assignments at home with parents’ assistance. She also taught student much writing work in class.  As Ms W’s observation, C sometimes was not confident and needs much assurance in writing, but she was self-aware her weakness and showed her beautiful handwriting to teacher.  She liked drawing and was creative in learning.  C had comparatively weak performance in abstract and logical thinking concepts in Maths, but she considered it the individual learning difference at this young age.  Ms W also explained that C failed to meet the school academic requirement because of C’s younger age in class and very high standard of the school syllabus.  Ms W shared that she could only pay individual attention to C in class when the teaching schedule was not tight at lessons.  Ms W did not sure that C would have good academic performance even though she repeated K.2 when she became older at that time, but she was sure that C would encounter much difficulty if she would promote to K.3 in coming school year.

19. School visits were conducted during this adjournment.  C’s school worksheets, homework book and assessment papers were seen.  It showed that C’s handwriting performance was consistent in worksheets and homework books.  She sometimes erased the untidy writing.  For the assessment papers, C needed to answer a series of different types of questions which required student to have comprehension skill, good memory, writing (copying words) and good dictation.  C used different colours in the drawing column of assessment paper.

20. Ms X, the school Principal and Ms Z, the Vice-Principal were met during school visit on 28.6.2016.  Ms X emphasized that school would provide good Chinese learning with Cantonese as teaching media and building students with strong English reading and self-learning skills.  Both Ms X and Ms Z informed that C was not up to standard of K.2 academic requirement and was not desirable for promotion to K.3 at the present stage.  Ms Z furthered that C caught up almost half of the requirement of school syllabus.  Both opined that C’s learning incapability related to her younger age in class, so she naturally was able to acquire better academic performance when she grew older.  Being a repeater, C would be familiar with the syllabus and served as a “Big Sister” in class, so C’s confidence would be boosted up at that time.  Both assured that different class materials with similar K.2 standard would be used and the class teacher would pay attention to C, so as to avoid labelling effect or loss of study interest. No other school support outside class was mentioned upon enquiry.

21. Observation to C was arranged in English class on 28.6.2016.  During the process, C was attentive and well participated in teaching time.  She raised her hand to answer questions occasionally.  Being chosen, C wrote the answer (her name) on the whiteboard.  During snack time, C approached teacher for extra food by herself and chatted with classmates happily.  She initiated questions to teacher about the artworks on the notice boards.  When C was required to complete worksheet in class, she used pencil to write first.  She repeatedly sought teacher’s assurance before or after writing and she was reminded of appropriate writing skills.  When teacher offered support by sitting near her, C moved her seat next to teacher happily.  She looked at other’s writing from time to time.  C moved back to her original seat about a few minutes later when she completed writing column.  She then used colour pens to decorate her writing.  During the process, she asked her classmates twice for getting colour pens, but she was ignored.  She showed a disappointed face and sat there a while.  Until another classmate got the colour pens basket for her, she started to colour her rainbow writing.  When card-reading time, C was the last one as she completed her worksheet late.  The other students played the toys when she was reading.  C needed much hints in reading card before teacher.

17.  The Social Welfare officer concluded that C was more suited to “an international school mode of learning” and that the mother should make the school arrangement for C. Ms Rattigan said, and I would agree with this, that it is wrong as a matter of principle where parties enjoy joint custody and where there is disagreement, to allow one party to make such an important decision over the obvious disagreement of the other. 

The Psychological Report

18.  Dr Y recommended that:

22. At the end of this past school term, School R recommended that C repeat her study in K2.  Apart from the unfavourable factor that she was the youngest in her class, it was also very likely that C’s performance anxiety impeded her from manifesting her academic potential.  Given that School R is a highly competitive traditional school, C would feel strong pressure to perform.  Yet having also to deal with abundant stressors in her home life, it is understandable why her study results did not measure up.  In contrast, her private tutors in English and Chinese language both concurred that C was an enthusiastic and effective learner.

23. Before C’s parents could settle their nonstop battles and unwittingly put C right in the middle of their battle ground, they are bound to lose sight of what is best for their child.  At this juncture, an educational environment that could facilitate C’s optimal learning would be one in which the school personnel would be understanding and accepting of C’s need for emotional security and that more time, attention and instructional support are available from teachers.

19.  I should add that there is nothing to suggest that the school personnel at School R are not understanding or accepting of C’s needs or that the staff at School Q would be better suited to cater for this than the staff at School R. Neither is there any evidence to support the suggestion that the staff at School Q would be able to provide more time, attention or instructional support than their counterparts at School R. 

Conclusion

20.  I accept that in due course it may be sensible for C to change schools and that a more international school environment may be a better option for her in the long run. I am though concerned that by placing her in an international school environment at the present time that I may be limiting her educational options considerably going forward. This is of particular concern given that her family are a traditional middle class Cantonese family. I accept that in keeping with a great many other families in Hong Kong the father’s preference is that C should have a strong grounding in Chinese culture first – which normally means a strong grounding in Cantonese – both spoken and written before she goes to school in Australia for her senior years. As I understand it the School R caters for this – i.e. a desire for a strong foundation in Cantonese plus some emphasis on English. As I understand it the expectation often is that the children will then be expected to pick up Mandarin later – which presumably is where School T came in – given its emphasis on Mandarin as a teaching medium. This approach has much to recommend it – but it doesn’t suit all children. It may not suit C longer term. In the short term however, and as indicated above, I would like her to be tested to make sure that she does not have any educational problems which might preclude this sort of approach.

21.  Given these concerns it seems to me that it would be more appropriate for C to remain at School R and to repeat K2. If she has an educational issue that needs to be addressed and/or she does not do well, even by repeating K2, then the parents may have no alternative but to enrol her in a different school going forward. In that event School Q may be one option to consider. I have no doubt that there may be others. If however there are no learning issues to be addressed and she does well by repeating then she should be able to progress to K3. In that event the parents will have a much wider choice of primary schools than if they moved her into the international school environment now – even with the cut off point of 6 years 11 months. I have also taken into account the comments made by School R in the letter sent to the mother’s solicitors as set out in paragraph 10 above namely that repeating a year should make little difference if the ultimate goal is that she should study in Australia in her senior years.      

Access arrangements

22.  There have been difficulties over access previously which led initially to the court orders dated the 6 August 2015 and the 12 October 2015. The parties then sensibly entered into mediation which led to the consent order dated the 28 December 2015. They agreed inter alia that they would share parental responsibility and that they would have joint custody of C with defined access to the father. Given the father’s heavy work schedule which also necessitated regular overseas travel, the party’s also agreed as follows:

E.   AND UPON the Petitioner and the Respondent agreeing to vary the Respondent’s access to C under the Order as follows:-

(1) The Respondent shall have access to C from 8:30 am to 9:00 am to take her to school two times a week during school days Provided That the Respondent will send a prior notice to the Petitioner by 8:00 pm on every Sunday through the designated email account or WhatsApp group informing the Petitioner which of the two days in the forthcoming week he would like to take C to school or he is only available to take C to school for one day only in the week or none at all.  If the Respondent has to miss his access due to his work schedule under this subparagraph, he is entitled to have a makeup access within 7 days from the date when access was missed i.e. within the following week but not any otherwise.

(2) The Respondent shall have access on Thursdays from 5:30 pm to 8:30 pm for dinner.  If the Respondent has to miss his access due to his work schedule under this subparagraph, he is entitled to have a makeup access within 7 days from the date when access was missed i.e. within the following week but not any otherwise.

(3) The Respondent shall have two extra access times to C every month from 5:30 pm to 8:30 pm for dinner (“Extra Dinner Time”) Provided That the Respondent shall send a 7 days’ prior notice to the Petitioner through the designated email account or WhatsApp group by 8:00 pm on a Sunday informing her which day during the forthcoming week he would like to have the Extra Dinner Time.

(4) Access on Saturdays from 9:30 am to 8:30 pm.

(5) Single public/school holidays shall be alternated between the parties.

(6) The Respondent shall have staying access to C for half of the school holidays Provided That during the staying access the Petitioner’s maid shall be allowed to stay with C throughout the whole time until one month after the Respondent’s new maid started to work for the Respondent.  Regarding the school holidays which consist of the Christmas and New Year Holidays, the Chinese New Year Holidays, the Easter Holidays and the Summer Holidays, the parties agree that it will be divided into two periods as first half and second half to be shared between the parties on an alternate basis.  Commencing from the school holidays starting in 2016, the Respondent will have C for the first half and the Petitioner will have C for the second half in the even years (e.g. 2016, 2018, 2020, etc.). This arrangement is reversed in the odd years (e.g. 2017, 2019, etc.) where the Petitioner will have C for the first half and the Respondent will have C for the second half.  It is further understood by both parties that either party can take C on overseas vacation so long as the duration is within the period in which the parent is entitled to have C.

(7) For the avoidance of any doubt, it is agreed that save and except as provided in Clauses E(1) and E(2) above, there is no makeup access to be arranged if for any reason whatsoever the Respondent cannot attend any of other access time provided in the above.

23.  Unfortunately difficulties have continued with respect to weekly staying access and although the father has for example recently taken C away over the summer for a short break in Taiwan, the mother remains resistant to regular overnights during the week in term time.

The father’s proposal

24.  In light of the recommendations in the reports (please see paragraph 25 and 26 below) the father has put forward the following proposals on a week on week off basis:

71.

First Month after the Order
 For the 2 weeks when he does not need to travelFor the 2 weeks when he is travelling
Morning Access 8:30am to 9:00am every Monday, Wednesday and Friday to take C to school No access scheduled
Thursday Dinner Access 5:30pm to 8:30pm for dinner 5:30pm to 8:30pm for dinner if he happens to be in Hong Kong - notice will be given
Extra Dinner Access (as per the existing Order)
 
5:30pm to 8:30pm on Monday 5.30 to 8.30pm for dinner if he happens to be in Hong Kong - notice will be given
Weekend and Overnight Access Friday night at 5.30pm until 8.30pm on Saturday Friday night at 5.30pm until 8.30pm on Saturday.
Due to his travel arrangements he sometimes may not be able to be back until late on Friday night, if this occurs he would like the Mother to be amenable to changing this so that the access is from 9.30am on Saturday to Sunday at 9.30am.  He will give as much notice as possible.
Second Month after the Order
After one month of one night staying access per week the Father would like to build up to having two nights as follows:
 For the 2 weeks when he does not need to travelFor the 2 weeks when he does need to travel
Morning Access 8:30am to 9:00am on Monday, Wednesday and Friday to take C to school No access
Thursday Dinner Access 5:30pm to 8:30pm for dinner 5:30pm to 8:30pm for dinner if he happens to be able to be in Hong Kong - notice will be given
Extra Dinner Access 5:30pm to 8:30pm on Monday 5.30pm to 8.30pm if he happens to be in Hong Kong - notice will be given
Weekend and Overnight Access 5.30pm on Friday until 9:30am on Sunday 5.30pm on Friday to 8.30pm on Saturday.
Due to his travel arrangements he sometimes may not be able to be back until late on Friday night, if this occurs he would like the Mother to be amenable to changing this so that the access is from 9.30am on Saturday to Sunday at 9.30am.  He will give as much notice as possible.
72.In addition to the above, the arrangement of the alternate and sharing of public/school holidays, as per Recitals E(5) and E(6) of the Consent Order should remain unchanged.

The mother for her part says that she will be guided by the recommendations made in Dr Y’s report.

The Reports

The Social Welfare Report

25.  The Social Welfare officer recommended in her updated report dated the 15 July 2016 that:

40. In view of above, I thus recommended that the Petitioner, A, should make the school arrangement of the child, C at present, the Respondent, B, be granted the weekly weekend staying access for 1 or 2 nights at their agreeable time from Friday evening to Sunday morning, provided that B would be available to provide emotional support to C directly during her bedtime.

The Psychologists Report

26.  Dr Y for her part emphasized the need as highlighted by Ms Rattigan, for C to have familiarity, stability and predictability if she was to formulate a much needed sense of security. In making her recommendations as adopted by the mother she said that:

23. C’s separation anxiety disorder indicated that she was suffering from harmful effects of her parents’ divorce and ensuing emotional battle.  Based on observations of C’s reactions to access arrangements in the past months, I recommend that some adjustments be made so C’s developmental needs for emotional security be given top priority:

a. Twice a week morning access be removed

b. Weekly evening access on Thursdays

c. Weekly weekend access from Friday evening to Saturday night, with overnight staying access on Fridays, provided that the father would be available to follow a bedtime routine and rituals so that the child’s trust in dependency on her parents can be ensured.

d. When C overcomes her anxiety disorder and she becomes mature enough to indicate her preference, extending the weekly overnight staying access to two nights could be feasible.

e. Single public/school holidays alternated between the two parents as previously enforced.

Conclusion  

27.  It is important that both parents have regular quality time with their daughter preferably in a stress free environment. At present C has an Extra Curricular Activity on most days after school as follows: Tuesday – Chinese,
Wednesday – English,
Thursday – Picasso and Art
Friday – ballet.
In addition I was told that the father takes her to swimming lessons on Saturday and that she also enjoys other ad hoc interest classes.

28.  Unfortunately C is struggling a little. In the words of Dr Y:

19. Her anxiety is mostly manifested in her hyper-vigilance when away from her primary attachment figure, namely her mother, refusing to sleep alone, taking a long time to fall asleep, bed-wetting, nightmares and her poor school performance. It is most likely that her anxiety is related to the lack of appropriate parental interaction, extensive parental conflict, tension from the divorce proceeding, being overly protected by mother on the one hand and ambivalent reaction toward father on the other.

29.  This needs to be taken into account in any order that I now make for access. I accept therefore that it is important that as far as possible there is some form of regularity in the contact that C has with her father. Consequently I suggested that during his “week off” that the party’s consider a skype date between Father and child. I also accept that the early mornings, when the father has traditionally taken C to school may cause more harm than good at present and should be removed for the time being.

20. A few issues emerged with the access arrangement of B to his daughter in the past seven months.  It appeared that the morning access twice a week was not particularly conducive to building stability in C’s routine.  Owing to B’s business travel needs, the two morning access often did not fall on the same days in a week.  Although the changes appeared to be small, they caused psychological disruption and forced C to having to make constant adjustment in order to cope.

30.  With this in mind I shall make an order on a week on/week off basis as follows:

Week One – Father in town

Monday and Thursday – 5:30 pm – 8:30 pm – dinner access

Overnight staying access from Friday night at 5:30 pm to 8:30 pm on Saturday

Week Two - Father not in town

Monday and Thursday – skype date at time to be agreed between the parties between the hours of 5:30 – 8:30 pm. This may be replaced by dinner access in the event that the father is in Hong Kong. The father to inform the mother, as before, by 8 pm the Sunday before the access is to take place in the event that he wishes to have dinner access with C.

Overnight staying access from Saturday at 9:30 am to Sunday at 9:30 am.

There will be no makeup access.

Costs

31.  Given that this is a children’s matter there will be no order as to costs.

The order

32.  a) The mother’s summons dated the 26 April 2016 be dismissed;

  b) It is further directed that C have an educational assessment, such assessment to be filed at court prior to the adjourned Children’s Appointment;

  c) It is also directed that C attend therapy (possibly play therapy) for her mild anxiety disorder and generally. In the event that the parties are unable to agree on the name of a therapist both shall write to the court with no more than two suggestions within the next 7 days. Copies of the therapists CV’s and an indication of the cost involved shall also be provided;

  d) It is also directed that both parties have therapy or attend counselling for their own issues as recommended by Dr Y;

  e) There be no order as to costs with respect to the mother’s summons dated the 26 April 2016;

  f) Paragraphs E (1) – (4) and (7) and order 1 of the court order dated the 28 December 2015 shall be dismissed and replaced by paragraph 30 above. For the avoidance of doubt paragraph E (5) and (6) shall remain in place in so far as they remain relevant;

  g) There shall be no order as to costs with respect to the father’s summons dated the 26 April 2016;

  i) The Children’s Appointment adjourned sine die with liberty to restore in the court order dated the 28 December 2015 shall be restored and adjourned to the 25 April 2017 at 9:30 am. Both parties shall personally attend that hearing.

  j) An updated Social Investigation report to be filed 14 days prior to the Children’s Appointment.     



 (Sharon D. MELLOY)
District Judge

Mr David Pilbrow SC instructed by Mayer Brown JSM for the Petitioner

Ms Mairead Rattigan instructed by Withers for the Respondent