WILLWIN DEVELOPMENT (ASIA) CO LTD AND ANOTHER v. WEI XING AND OTHERS

WILLWIN DEVELOPMENT (ASIA) CO LTD AND ANOTHER v. WEI XING AND OTHERS

On the evidence and in light of defendants' failure to provide proper accounts and source documents, the Master accepted a proved gross revenue of US$603,312.09 and awarded 83% (US$500,749.03) as accountable profits; misappropriation claims were not proved on balance and therefore failed; ICS receivables (US$12,678 and RMB3,000) were held to be payable by the 1st defendant; interest follows the trial judge's order at 4% per annum from service of writ until judgment and then judgment rate; costs follow the events and are ordered against defendants.

Citation
[2020] HKCFI 407
Parties
1st Plaintiff: Willwin Development (Asia) Company Limited; 2nd Plaintiff: Shenzhen Willwin Technology Company Limited; 1st Defendant: Wei Xing; 2nd Defendant: Evolution Solution Limited; 3rd Defendant: Hu Ying
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 April 2020
Case Number
HCA797/2012
Procedural Posture
Taking of Account / Account of Profits (equitable Claim) / Master's Taking of Account Hearing and Decision (post Trial Inquiries)
Outcome
Accounting exercise awarded to 1st plaintiff in part; misappropriation claims dismissed; costs awarded to plaintiff
Legal Topics
Account of Profits, Breach of Fiduciary Duty, Dishonest Assistance, Misappropriation, Passing Off, Breach of Confidence, Interest, Costs
Source Language
EN
Equity Commercial Law Company Law Civil Procedure Account of Profits Breach of Fiduciary Duty Dishonest Assistance Misappropriation +4 more

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Parties

Willwin Development (Asia) Company Limited

1st Plaintiff

Shenzhen Willwin Technology Company Limited

2nd Plaintiff

Wei Xing

1st Defendant

Evolution Solution Limited

2nd Defendant

Hu Ying

3rd Defendant

Procedural Posture

Taking of Account / Account of Profits (equitable Claim) / Master's Taking of Account Hearing and Decision (post Trial Inquiries)

Legal Issues

  1. 1 Whether defendants diverted business and must account for profits
  2. 2 Whether alleged misappropriation of company funds was proved
  3. 3 Whether ICS cash receipts were accounted for and payable to plaintiff

Ratio Decidendi

On the evidence and in light of defendants' failure to provide proper accounts and source documents, the Master accepted a proved gross revenue of US$603,312.09 and awarded 83% (US$500,749.03) as accountable profits; misappropriation claims were not proved on balance and therefore failed; ICS receivables (US$12,678 and RMB3,000) were held to be payable by the 1st defendant; interest follows the trial judge's order at 4% per annum from service of writ until judgment and then judgment rate; costs follow the events and are ordered against defendants.

Court Disposition

Accounting exercise awarded to 1st plaintiff in part; misappropriation claims dismissed; costs awarded to plaintiff

Orders

  • All three defendants jointly and severally to pay the 1st plaintiff US$500,749.03 being account of profits for diversion of business
  • The 1st defendant to pay the 1st plaintiff US$12,678 and RMB3,000 being ICS receivables