Son Hou Enterprises Pty Ltd v Bank of China

Son Hou Enterprises Pty Ltd and another party (the plaintiffs) brought proceedings against the Bank of China and another party (the defendants) in the Supreme Court of New South Wales. The dispute concerned allegations of fraud and conspiracy in relation to certain banking transactions.

The primary legal issue before the Court of Appeal was whether the plaintiffs had established a prima facie case of fraud against the Bank of China, which would justify the grant of leave to serve the Bank of China out of the jurisdiction. This involved considering the nature of the allegations and the evidence presented to support them, particularly in the context of international service.

The Court of Appeal, in its reasoning, applied the principles governing service out of the jurisdiction, which require a plaintiff to demonstrate a good arguable case on a cause of action properly justiciable in New South Wales. The court examined the plaintiffs' evidence of fraud and conspiracy, finding that it did not meet the threshold required to establish a prima facie case against the Bank of China. The court considered that the allegations, while serious, were not sufficiently substantiated by the material before it to warrant the extraordinary step of allowing service on an overseas defendant.

Consequently, the Court of Appeal dismissed the plaintiffs' appeal, upholding the decision of the lower court which had refused leave to serve the Bank of China out of the jurisdiction.