CHU LING AND ANOTHER v. PRIWAY INVESTMENTS LTD. AND ANOTHER

CHU LING AND ANOTHER v. PRIWAY INVESTMENTS LTD. AND ANOTHER

Plaintiffs failed to prove that the 2nd Defendant had actual or apparent authority to bind Priway; consequently Priway was not party to the sale agreements. The Plaintiffs' registration of the agreement and writ was a wrongful interference with Priway's title making them liable for Priway's consequent losses. The 2nd Defendant breached a warranty of authority and is liable to the Plaintiffs for losses flowing and reasonably foreseeable to her (subject to mitigation), measured as the difference between the agreed purchase price and the market value at completion ($1.23m).

Citation
CHU LING AND ANOTHER v. PRIWAY INVESTMENTS LTD. AND ANOTHER
Parties
1st Plaintiff: Chu Ling; 2nd Plaintiff: Tsui Chi Man; 1st Defendant: Priway Investments Limited; 2nd Defendant: Cheung Ling Wan, Jennifer
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 November 2000
Case Number
HCA14555/1996
Procedural Posture
Contract (sale of Property) / Agency / Damages / Judgment at Trial (court of First Instance)
Outcome
Claims of the Plaintiffs against the 1st Defendant dismissed; 1st Defendant's counterclaim succeeded; judgment for the Plaintiffs against the 2nd Defendant for breach of warranty of authority.
Legal Topics
Apparent/ostensible Authority, Breach of Warranty of Authority, Registration of Lis Pendens / Encumbrance, Mitigation of Loss, Remoteness/foreseeability, Counterclaim for Losses
Source Language
EN
Contract Agency Property Equity Tort (wrongful Interference) Remedies (damages, Specific Performance) Apparent/ostensible Authority Breach of Warranty of Authority +4 more

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Parties

Chu Ling

1st Plaintiff

Tsui Chi Man

2nd Plaintiff

Priway Investments Limited

1st Defendant

Cheung Ling Wan, Jennifer

2nd Defendant

Procedural Posture

Contract (sale of Property) / Agency / Damages / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 Whether the 2nd Defendant had actual or apparent authority to bind the 1st Defendant to sale agreements
  2. 2 Whether the 1st Defendant was bound by the agreements signed by the 2nd Defendant
  3. 3 Whether registration of the agreement and writ by the Plaintiffs was wrongful interference with title

Ratio Decidendi

Plaintiffs failed to prove that the 2nd Defendant had actual or apparent authority to bind Priway; consequently Priway was not party to the sale agreements. The Plaintiffs' registration of the agreement and writ was a wrongful interference with Priway's title making them liable for Priway's consequent losses. The 2nd Defendant breached a warranty of authority and is liable to the Plaintiffs for losses flowing and reasonably foreseeable to her (subject to mitigation), measured as the difference between the agreed purchase price and the market value at completion ($1.23m).

Court Disposition

Claims of the Plaintiffs against the 1st Defendant dismissed; 1st Defendant's counterclaim succeeded; judgment for the Plaintiffs against the 2nd Defendant for breach of warranty of authority.

Orders

  • Registration of the agreement and copy writ at the Land Registry Office to be vacated forthwith.
  • The 1st and 2nd Plaintiffs shall pay to the 1st Defendant the sum of HKD 1,400,360 together with interest at the prime rate from 25 November 1998 to date of judgment and thereafter at judgment rate until payment; costs taxed if not agreed.