MANDECLY LTD AND ANOTHER v. HAO WEI AND OTHERS

MANDECLY LTD AND ANOTHER v. HAO WEI AND OTHERS

The court awarded damages of RMB100,420,000 for the 33 flats (valued as at 23 November 2012) with interest at prime plus 1% per annum from that date until the date of decision and judgment-rate interest thereafter; declared that the plaintiffs hold an unpaid vendor's lien over the 1,000,000 shares in the 3rd defendant which extends to secure the assessed damages and interest; and ordered the shares to be sold by public tender notwithstanding the 5th defendant's pledge/possession of share certificates because the plaintiffs' lien predated the 5th defendant's security and the 5th defendant takes its security subject to prior equities.

Citation
MANDECLY LTD AND ANOTHER v. HAO WEI AND OTHERS
Parties
Plaintiffs: Plaintiffs; Defendant: 1st defendant; Defendant: 2nd defendant; Defendant: 3rd defendant; Defendant: 4th defendant; Defendant: 5th defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 February 2014
Case Number
HCA1216/2002
Procedural Posture
Civil Contract Enforcement/specific Performance and Enforcement of Judgment / Inquiry as to Damages and Application for Sale of Charged Shares (post Judgment Enforcement Hearing)
Outcome
Application granted in part: damages assessed; declaration of lien; order for sale of shares by public tender; interest awarded
Legal Topics
Specific Performance, Unpaid Vendor's Lien, Judicial Sale of Charged Assets, Assessment of Damages, Interest on Judgment, Receivership, Priority of Security Interests
Source Language
EN
Contract Property Equity Enforcement Civil Procedure Specific Performance Unpaid Vendor's Lien Judicial Sale of Charged Assets +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Plaintiffs

Plaintiffs

1st defendant

Defendant

2nd defendant

Defendant

3rd defendant

Defendant

4th defendant

Defendant

5th defendant

Defendant

Procedural Posture

Civil Contract Enforcement/specific Performance and Enforcement of Judgment / Inquiry as to Damages and Application for Sale of Charged Shares (post Judgment Enforcement Hearing)

Legal Issues

  1. 1 Whether plaintiffs entitled to damages for 33 flats that were assigned away making specific performance impossible
  2. 2 Whether plaintiffs retain an unpaid vendor's lien over the shares in the 3rd defendant securing the damages
  3. 3 Whether the court may order sale of the shares despite the 5th defendant's pledge/charge and possession of share certificates

Ratio Decidendi

The court awarded damages of RMB100,420,000 for the 33 flats (valued as at 23 November 2012) with interest at prime plus 1% per annum from that date until the date of decision and judgment-rate interest thereafter; declared that the plaintiffs hold an unpaid vendor's lien over the 1,000,000 shares in the 3rd defendant which extends to secure the assessed damages and interest; and ordered the shares to be sold by public tender notwithstanding the 5th defendant's pledge/possession of share certificates because the plaintiffs' lien predated the 5th defendant's security and the 5th defendant takes its security subject to prior equities.

Court Disposition

Application granted in part: damages assessed; declaration of lien; order for sale of shares by public tender; interest awarded

Orders

  • Damages assessed at RMB100,420,000 in respect of the 33 flats
  • Interest on damages at prime plus 1% per annum from 23 November 2012 until date of decision and judgment rate thereafter