On 21 April 2026, the Court of Final Appeal (CFA) handed down a landmark judgment in High Fashion New Media Corp Ltd v Leong Ma Li [2026] HKCFA 18 on the law of civil contempt. The decision provides authoritative guidance on contempt liability concerning acts committed by third parties, and upholds the rule against collateral attack in contempt proceedings.
Contempt Liability for Third Party Acts
Largely in line with the Respondent’s legal submissions regarding the framework for contempt, Lam PJ clarified that a party can be held liable in contempt for the acts of another via two parallel routes:
- where acts are committed by servants or agents within the scope of authority (“Imputation Basis”). Here, the Court agreed with the Respondent’s submissions that there is no additional requirement that the principal could reasonably have foreseen such acts and failed to take any reasonable steps to prevent them.
- where a term can be implied requiring a defendant to take steps to prevent others from committing prohibited acts (“Implied Term Basis”).
The ultimate disposition of the appeal turned on a factual determination regarding corporate governance. Lam PJ and Lord Hoffmann NPJ observed that, following the Appellant’s resignation as chairman of the company, the accountant functioned as the company’s employee rather than the Appellant’s agent. On these facts, the Court found ambiguities as to the degree of control for the purpose of satisfying either basis above.
The Rule Against Collateral Attack in Contempt Proceedings
Crucially, the CFA also reaffirmed the rule against collateral attack in the contempt jurisdiction, i.e. that court orders must be obeyed unless and until they are set aside. Such rule is of paramount importance in the due administration of justice. Thus, Cheung CJ and Lam PJ cautioned against attempts to sidestep contempt liability via collateral challenges to the relevant court order or underlying action. Their Lordships refrained from expressing any views on the propriety of the underlying action.
Ultimately, the judgment stands as reaffirmation of the strict enforceability of court orders, and clarifies the legal framework for holding defendants accountable in contempt proceedings.
Mr Wong Yan Lung SC, Mr Anthony Chan SC, Mr Howard Wong and Mr Shaun Elijah Tan, instructed by P C Woo & Co, for the Defendant (Appellant)
Ms Rachel Lam SC, Ms Eva Leung and Mr Jason Fee, instructed by Hugill & Ip, for the Plaintiff (Respondent)
The full judgment is available at: https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=179721&currpage=T
