Americhip, Inc v Dean

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2013-404-004247 [2015] NZHC 1534

BETWEEN

AMERICHIP, INC

Plaintiff

AND

JASON CHARLES DEAN First Defendant

JUAN CHEN Second Defendant

Hearing:	12 June 2015
Appearances:	David Goddard QC and Liesle Theron for the Plaintiff David Jones QC for the Defendants
Judgment:	3 July 2015

RESERVED JUDGMENT OF MOORE J

This judgment was delivered by me on 3 July 2015 at 11:00am pursuant to Rule 11.5 of the High Court Rules.

Registrar/ Deputy Registrar

Date:

AMERICHIP, INC v DEAN & ANOR [2015] NZHC 1534 [3 July 2015]

Contents

Paragraph

Number

Introduction ..............................................................................................................[1] The applications .......................................................................................................[5] Factual background .................................................................................................[6] Procedural background .........................................................................................[16] Freezing orders .......................................................................................................[28] Was there a failure to disclose material facts? ....................................................[35] Lack of full disclosure ..........................................................................................[36] Plaintiff ’s submissions..........................................................................................[38] Decision................................................................................................................[40] Does Americhip have a good arguable case? .......................................................[46] Defendants’ submissions ......................................................................................[47] Plaintiff ’s submissions..........................................................................................[51] Decision................................................................................................................[62]

Is there a risk of dissipation? ................................................................................[64] Defendants’ submissions ......................................................................................[65] Plaintiff ’s submissions..........................................................................................[66] Decision................................................................................................................[71] What are the interests of justice?..........................................................................[88] Defendants’ submissions ......................................................................................[89] Decision................................................................................................................[94] Conclusion............................................................................................................[98] Disclosure orders ....................................................................................................[99] Defendants’ submissions ....................................................................................[101] Plaintiff ’s submissions........................................................................................[102] Decision..............................................................................................................[103] Appointment of receivers ....................................................................................[109] Mairangi Bay ..................................................................................................... [113] Bank accounts .................................................................................................... [119] Timetabling orders ...............................................................................................[123] Result .....................................................................................................................[128] Costs ......................................................................................................................[135]

Introduction

[1]      The  plaintiff,  Americhip,  Inc  (“Americhip”)  claims  that  the  defendants, Mr Jason  Dean  and  Ms  Zita  Chan1   have  defrauded  it  of  approximately  US$10 million.   Americhip says they stole these funds using a variety of skimming techniques, but primarily through an elaborate fraudulent scheme involving the submission of false or inflated invoices for manufacturing work done for Americhip by various companies in China.

[2]      The proceedings against Mr Dean were filed on 18 September 2013.   The fourth amended statement of claim2  contains six causes of action alleging deceit, breach of fiduciary duty (by Mr Dean), breach of fiduciary duty (by Ms Chan), constructive trusts over the proceeds of fraud, knowing receipt (by Ms Chan) and dishonest accessory liability (against Ms Chan).

[3]      On 24 April 2015 Americhip applied for and was granted various ex parte orders freezing the first defendant’s assets, requiring the disclosure of assets and joining Ms Chan as the second defendant.  An application for orders appointing a receiver was adjourned.

[4]      On the same day Americhip obtained freezing orders in the form of a Mareva injunction in Hong Kong.  The banks in New Zealand and Hong Kong were served on 24 April 2015 after which Mr Dean and Ms Chan were notified.

The applications

[5]      Americhip have now brought applications seeking the following:

(a)       an  order  continuing  the  freezing  orders  made  on  24  April  2015 restraining Mr Dean and Ms Chan from dissipating their assets;

(b)orders requiring Mr Dean and Ms Chan to fully comply with the disclosure orders made on 24 April 2015 by disclosing all deposits,

1      Also known as Juan Chan.

2      Dated 24 April 2015.

transfers or withdrawals  of funds into, between  or from  the bank accounts affected by the freezing…