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You are here: BAILII >> Databases >> England and Wales High Court (Family Division) Decisions >> Chai v Peng [2014] EWHC 3519 (Fam) (17 October 2014) URL: https://www.bailii.org/ew/cases/EWHC/Fam/2014/3519.html Cite as: [2014] EWHC 3519 (Fam) |
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FAMILY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
PAULINE SIEW PHIN CHAI | Petitioner |
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TAN SRI KHOO KAY PENG | Respondent |
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1st Floor, Quality House, 6-9 Quality Court
Chancery Lane, London WC2A 1HP.
Tele No: 020 7067 2900, Fax No: 020 7831 6864, DX: 410 LDE
Email: info@martenwalshcherer.com
Website: www.martenwalshcherer.com
Vardags)
appeared for the Petitioner
MR. TIMOTHY SCOTT QC, MR. PETER DUCKWORTH and MR. JAMES PULLEN (instructed by Shakespears LLP) appeared for the Respondent
____________________
VERSION
OF JUDGMENT
Crown Copyright ©
[This is the first of two Judgments delivered today and although free-standing should be read together with the second Judgment [2014] EWHC 3519 (Fam) delivered today. I have checked and approved it under considerable pressure of time and other work, so that it will be available for the Court in Malaysia at the imminent hearing there.]
MR. JUSTICE BODEY:
These proceedings raise issues between the parties about (i) jurisdiction; (ii) 'forum conveniens' (i.e. in which jurisdiction a case can be more appropriately dealt with) and (iii) estoppel by foreign judgment (where a party may be stopped from re-litigating a point here which has already been determined by a foreign court as between the same parties). The first two such issues have been bitterly, tenaciously and hugely expensively fought across two jurisdictions, Malaysia and England. Nominally the case centres on the parties' mutual desire for a divorce, but in reality the question is as to where the financial proceedings between them should be heard. Each thinks that his/her desired jurisdiction will produce for him/her a better financial outcome. The wife has issued a divorce petition in this jurisdiction, whilst the husband has issued one in Malaysia. For jurisdictional and procedural reasons, however, he is presently unable to progress it pending a hearing in that jurisdiction next month.
Chai
(whom I will call for convenience "the wife") is able to show jurisdiction here under Article 3 of Brussels II revised, put shortly (as the issue has emerged) on the basis of her habitual residence here for twelve months before her petition. It has raised
very
many disputes of fact. If I am satisfied as to jurisdiction then there is an application by Tan Sri Dr. Khoo Kay
Peng
(whom, for convenience, I will call "the husband") for a stay of the wife's divorce petition here on the basis that this jurisdiction is not the 'forum conveniens', thereby enabling him to proceed exclusively in Malaysia.
(B) Brief Factual Background
very
many other business interests he describes himself as 'non-executive
chairman'
of Laura Ashley Holdings Plc and of Corus Hotels Limited. I stress that the wife's assertions are at present no more than that, the husband having declined at this stage to give any information as to his means. I make no findings about the accuracy or otherwise of the wife's case regarding the husband's wealth.
values
at around £30 million. Although I say 'the parties' estate', the property is
vested
in a British
Virgin
Island company in which the husband accepts that he is the only significant shareholder. He denied in cross-examination that he has any beneficial interest in that property. He accepted in evidence that the purchase price, when it was bought for some £6.7 million in 2000, came from him. The wife does not work. Whilst her domicile of origin is Malaysian, it is her case that she now has a domicile of choice in this jurisdiction. However, she has limited her case on jurisdiction at this hearing to the sole ground that she has been habitually resident here for twelve months before the issue of her petition in May 2014. If she can establish that case, then this court would have jurisdiction under section 5 of the Domicile and Matrimonial Proceedings Act 1973 and Council Regulation EC2201/2003 to deal with the divorce and finances.
very
extensive world-wide travels on business, being at his side and supporting him. He puts the emphasis more on her shopping. From October 2012 it is effectively accepted by the husband that the wife has lived in England, her home having become Rossway Park Estate. This occurred when she remained here after the couple had been at Rossway, the husband returning to Malaysia expecting, as he says, that she would subsequently follow on.
(1) The husband's application to dispense with the requirement of a conciliation appointment so as to enable him to issue a petition for divorce in that jurisdiction and(2) the wife's application of 3rd May 2013 above to stay that
very
application of the husband's. That application of the wife's was made on forum conveniens grounds. Both parties were represented by counsel.
The learned judge found in the husband's favour and made orders:
(1) dismissing the wife's stay application, finding Malaysia to be 'overwhelmingly' the forum conveniens;
(2) finding that the Malaysian court had jurisdiction in respect of the husband's application based on the domicile of both parties in Malaysia (both need to be domiciled there for jurisdiction) and applying the domicile of dependence rule; and
(3) allowing the husband's application for a dispensation of the requirement of a conciliation appointment.
(1) It dismissed her appeal against the High Court's refusing her a stay of the Malaysian proceedings.(2) It set aside the High Court's findings about domicile and jurisdiction saying that such decisions should not have been made on affidavit, i.e. without cross-examination, and stating that the concept of 'domicile of dependence' (whereby a wife has to take her husband's domicile) needed more profound argument. It remitted those issues of domicile and jurisdiction for a re-hearing by a different High Court judge, which is the hearing coming up next month.
(3) It set aside and also remitted for re-hearing the High Court judge's dispensation of the requirement for a conciliation appointment.
(4) It did not however, set aside the High Court judge's finding that Malaysia is the forum conveniens. It is on this latter basis that the preliminary point is taken by the husband at this hearing that the wife is therefore estopped from progressing her case in this jurisdiction.
(1) He dismissed the wife's February 2013 petition at her request on the basis that she would then issue a fresh petition. The rationale was that more than twelve months had by then elapsed from October 2012, the date from which the husband appeared to be accepting that the wife has lived in England;(2) he declined to impose a condition on that dismissal that the wife's intended fresh petition be stayed and
(3) he dealt with maintenance pending suit and the wife's legal funding until the end of this hearing. A few days later on 7th May 2014 the wife issued her fresh petition, which is her current petition in this jurisdiction.
virtue
of the Malaysian court's decision that it, the Malaysian court, is the forum conveniens.
(C) The wife's case that the husband is estopped from applying again for a stay of her English divorce petition
v.
Henderson [1843] 3 HARE 100 whereby a party may be estopped from litigating a point which should have been brought forward previously. He says that the husband should have pursued his January 2014 stay application in this jurisdiction instead of agreeing for it to be adjourned. So the husband cannot now re-raise it. In my judgment the rationale of Henderson is not apposite here. The judgment there was in terms of there having been a previous adjudication by the court. It speaks of the court's 'earlier adjudication on the contest' and of the court having been '... actually required by the parties to form an opinion and pronounce a judgment'. That did not happen here. All that happened was that the husband decided not to pursue his stay application at that time. I do not consider that the "could have should have" type of estoppel is applicable. I therefore find that the husband is not himself estopped from advancing his case on estoppel, which I consider next.
(D) The husband's case that the wife is estopped from progressing her case in this jurisdiction by
virtue
of the Malaysian court's finding that it is the forum conveniens.
(i) A stay will only be granted where the court is satisfied that there is some other available forum having competent jurisdiction which is the appropriate forum; that is to say where the case may be tried more suitably for the interests of all parties and the ends of justice. It is for the party seeking the stay to prove the existence of some other available forum which is clearly or distinctly [ see further below] more appropriate.(ii) If the court decides that there is no other available forum which is clearly [see below] more appropriate, then a stay will (almost certainly) be refused.
(iii) If, however, the court concludes that there is some other available forum which is clearly [see below] more appropriate, then a stay will ordinarily be granted unless the applicant who resists the stay can show that a stay would deprive him or her of some legitimate personal or juridical advantage, or can show some other special circumstances by
virtue
of which justice requires that the trial should nevertheless take place here. If the applicant succeeds in showing this then the court must carry out a balancing exercise considering all the broad circumstances of the case, in order to determine the stay application, i.e. to decide where the case should be tried in the interests of the parties and the ends of justice.
(iv) A stay should not be refused simply because the applicant will be deprived of some personal or juridical advantage if the court is satisfied that substantial justice will be done in the available appropriate forum.
v
Cansulex Ltd [1987] AC 460, particularly at 475B to 478 E; from de Dampierre
v
de Dampierre (1988) 1 AC 92 and from SPH
v
SA FACV 22 of 2013 Court of Final Appeal Hong Kong, the judgment being dated 9th June 2014. Subject to one disputed point between counsel, these are also the forum conveniens principles and guidelines which are applicable in this jurisdiction as part and parcel of applying the statutory rule for discretionary stays in proceedings about marriage as per the Domicile and Matrimonial Proceedings Act 1973 Schedule 1, paragraph 9 (the 'balance of fairness and convenience' etc) which I deal with in Judgment 2: de Dampierre
v
de Dampierre. The disputed point arises from Butler
v
Butler Nos 1 and 2 [1977] 2 FLR 311 and is, as to whether the words "clearly or distinctly" in subparagraphs (i) above and the word "clearly" subparagraphs (ii) and (iii) above are applicable when applying the 1973 Act. I will revert to that in Judgment 2.
v
Rayner & Keeler Ltd (No 2) [1967] AC 853. At 967 A Lord Wilberforce there pointed out that in the nature of things an assessment of a foreign judgment may necessitate caution arising, among other things, from the possible difficulty of ascertaining the precise issue decided there and/or from the fact that the substantive law may not be the same as that applied in this jurisdiction. In Rule 42, 14-032, Dicey analyses the requirements for an issue estoppel by foreign judgment as follows:
" ... first the judgment of the foreign court must be: (a) of a court of competent jurisdiction in relation to the party who is to be estopped (b) final and conclusive and (c) on the merits; secondly, the parties to the English litigation must be the same parties as in the foreign litigation; and, thirdly, the issues raised must be identical. A decision on the issue must have been necessary for the decision of the foreign court and not merely collateral."
various
rules to the particular facts of this case. With no disrespect to counsel I pass over many of the points raised although I have them well in mind and concentrate on the four which strike me as the most significant.
vis-à-vis
the wife. Reference was made to section 33 of the Civil Jurisdiction and Judgments Act 1982 by which:
"... For the purposes of determining whether a judgment given by a court of an overseas country should be recognised or enforced in England ..., the person against whom the judgment was given shall not be regarded as having submitted to the jurisdiction of the court by reason only of the fact that he appeared (conditionally or otherwise) in the proceedings for all or any one or more of the following purposes, namely —
(a) to contest the jurisdiction of the court;
(b) to ask the court to dismiss or stay the proceedings on the ground that the dispute in question should be submitted ... to the determination of the courts of another country ..." etc.
very
issue of forum conveniens which she herself had asked it to determine.
virtue
of the pending remitted hearing.
Voth
v
Manildra Flour Mills Pty Ltd. [1992] 1 LPR 205. There the High Court of Australia had held that the test for forum conveniens is whether the party seeking the stay from the court seized can show that that court is a clearly inappropriate forum. The Malaysian Court of Appeal acceded to that submissions and applied exactly that test, concluding that the wife had not shown that the Malaysian jurisdiction was a clearly inappropriate jurisdiction.
v.
British and French Trust Corporation Ltd [1939] AC 1 and Thyssen-Bornemisza (1985) 2 FLR 670 at 692. He further submits that the Malaysian decision only decides forum conveniens as at April 2014 whereas time has now moved on. There were other differences upon which he relied as between then and now, although none of them struck me as a sufficient change of circumstance to justify not giving effect to the Malaysian court's decision if it would otherwise be right to do so.
v
Chief Constable of the West Midlands Police [1982] AC 529: Arthur Hall & Co
v
Symons [2002] 1 AC 615 at 702H. In the circumstances of this case I do not however consider that this adds anything to Mr. Scott's main argument. If, as I have found, the underlying issue decided in Malaysia is not the same as the underlying issue as it would fall to be decided in this jurisdiction, then I cannot see that it would be 'manifestly unfair' to the husband for the wife to be able to continue in this jurisdiction in her attempt to establish that this court has jurisdiction.
v. SLC [2005] 3 HKC 293 at paragraphs 20 and 21. I will now proceed to deliver Judgment No 2.