Insights

This edition of DCC Commercial Digest features a selection of significant judgments released in October 2026. Curated by Abigail Liu and Ted Chan, this issue highlights six noteworthy cases, each accompanied by a concise summary. Our aim is to provide valuable insights into recent legal developments and enhance understanding of critical issues in commercial law.

Summary of Cases
Case 1: Court of Appeal grants conditional stay of delivery-up order: common interest privilege and access to former solicitors’ files Cosimo Borrelli and Others v Linklaters (a firm) [2026] HKCA 1731

Date of Decision: 2 October 2026

Coram: Au and Coleman JJA

The Court of Appeal granted a conditional stay of an order requiring a firm of solicitors to deliver documents to its former client, SIL, pending an appeal by CNG, another former client which had separately retained the firm in the same arbitration and asserted privilege over certain documents. CNG’s principal ground concerning SIL’s entitlement to the documents just met the reasonable-prospects-of-success threshold, and delivery up risked rendering the appeal nugatory. The stay was therefore granted on condition that the appeal be immediately set down for hearing.

Case 2: Court of Appeal clarifies sham transactions and consideration in the context of marital settlement and bankruptcy challenge Chan Pui Sze and Mak Hau Yin (The Joint and Several Trustees of the Property of the Bankrupt) v Wang Jue [2026] HKCA 1776

Date of Judgment: 8 October 2026

Coram: Chu VP, Barma and G Lam JJA

The Court of Appeal dismissed a bankruptcy trustees’ challenge to a bankrupt husband’s transfers of properties to his wife under a marital settlement agreement. The judgment explained the relevant legal principles regarding an allegation of sham agreement in the context of bankruptcy.

Case 3: No rescission by self-help for innocent misrepresentation: CFA rejects proprietary recovery against downstream recipients ANZ Commodity Trading Pty Ltd v Excellence Raise Overseas Limited and others [2026] HKCFA 32

Date of Judgment: 13 October 2026

Coram: Cheung CJ, Ribeiro, Fok and Lam PJJ and Keane NPJ

The Court of Final Appeal clarified the approach to rescission in equity for innocent misrepresentation, and the implications for the plaintiff’s proprietary claims, holding that rescission requires a court order and that ANZ therefore had no proprietary claim against the downstream recipients.

Case 4: CFA confirms challenge untenable to a winding-up order based on an alleged prior assignment of the underlying loan debt; instigators and funders face costs liability China Properties Group Limited v JIC Trust Co., Ltd [2026] HKCFA 34

Date of Judgment: 11 September 2026

Date of Reasons for Judgment: 14 October 2026

Coram: Cheung CJ, Ribeiro, Fok and Lam PJJ and Keane NPJ

The Court of Final Appeal dismissed a challenge to a winding-up order based on an alleged prior assignment of the underlying loan debt, holding that the petition rested on a Mainland consent judgment which conclusively established the debt owed to the petitioner. The Court provide further guidance on distinguishing a challenge as to the petitioner’s creditor standing from a challenge to the court’s winding-up jurisdiction.

Case 5: Court of First Instance dismissed committal application despite finding an intentional breach of an asset disclosure order Li Wai Chun Transportation Company Ltd v Chang Man Shan Yvette [2026] HKCFI 6053

Date of Judgment: 29 October 2026

Coram: B Fung J

In dismissing the Plaintiff’s application to commit the Defendant for breaching an asset disclosure order ancillary to a Mareva injunction, the Court nevertheless found that the breach was intentional and not merely technical. The Court emphasised that responsibility for compliance was personal: neither negligently failing to read an order nor engaging lawyers to comply on a party’s behalf necessarily relieved that party of responsibility.

At the leave application, the Plaintiff relied on contumelious breach, but at closing submissions, the Plaintiff abandoned that allegation and relied only on negligent breach. Taking into account cumulatively the two-year delay in bringing committal proceedings, the duration of the breach, the protection afforded by the Defendant’s daughter’s undertaking concerning the transferred assets, subsequent compliance with further disclosure orders to the extent identified, and the purpose and utility of committal, the Court concluded that the Defendant should no longer be committed for contempt and dismissed the application.

Case 6: Court of First Instance permitted further expert evidence Sunny Elegant Ltd v Chau Ngo Sheung & Ors [2026] HKCFI 6039

Date of Decision: 20 October 2026

Date of Reasons: 30 October 2026

Coram: H. Au-Yeung J

The Court granted leave to adduce further evidence from the single joint expert in a water leakage action, notwithstanding that the application was heard only two days before trial. The application arose from a recent falling-concrete incident, following which the Plaintiff promptly sought the Defendants’ consent and applied for expert directions. Although delay alone could justify refusing a late application, refusal was not inevitable. The Court found that the Plaintiff could not be blamed for the timing: the incident had occurred only recently, and the application was heard so close to trial because of the Court’s diary. While the Defendants relied on lateness and prejudice to their trial preparation, the Court allowed the application after balancing all relevant factors to secure the just resolution of the dispute. Importantly, the further report could be accommodated within the trial timetable, leaving the parties time to respond.

Disclaimer: These articles do not constitute legal advice and seek to set out the general principles of the law. Detailed advice should therefore be sought from a legal professional relating to the individual merits and facts of a particular case. The photographs included in this document are for decorative purposes only and should not be taken as a depiction of any matter related to the cases summarised. The views and opinions expressed in these articles are solely those of the members authoring them and do not necessarily reflect the official policy or position of Denis Chang’s Chambers, or of any other member or members of Denis Chang’s Chambers.