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Ruling backs cross-border claims

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Hong Kong's appeal court has dismissed a Taiwanese businessman's bid to block a judgment made against him by a Taiwan court, striking a blow for firms struggling to enforce cross-border rulings.

John Wong Kwong-yiu was ordered by the Tainan District Court in September 1996 to pay Hong Kong company CEF New Asia NT$52,596 (about HK$12,465) and US$62,500 following a share dispute.

The Court of Appeal yesterday rejected his claims that judgments made in Taiwan should not be enforced because the SAR would not recognise the court.

Although Hong Kong does not recognise Taiwanese courts, civil debt judgments can be enforced.

The judges cited the rights of a creditor to recoup a sum under these circumstances, with Mr Justice Arthur Leong Shiu-chung ruling: 'Non-recognition in Hong Kong of these rights is turning a blind eye to realities.' The mainland's Supreme People's Court set out rules concerning civil judgments delivered in Taiwan last May, when it deemed recognition of such rulings a necessity.

These rules are not applicable in the SAR because of the provisions of the Basic Law.

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