RE L

RE L

A committee must obtain prior sanction under Part II of the Mental Health Ordinance before settling litigation on behalf of a mentally incapacitated person; despite the committee's failure to obtain prior sanction the court approved an increase in monthly payment out to $8,000 for the son as being in the MIP’s interest and adjourned the application concerning the UK property to allow mediation and negotiated resolution rather than immediate costly variation in the Family Court.

Citation
RE L
Parties
Mentally Incapacitated Person: L; Committee to Administer and Manage the Properties of L: Committee; Former Spouse and Ancillary Relief Applicant: Wife; Child and Ancillary Relief Applicant: Son
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 May 2006
Case Number
HCMP1120/2003
Procedural Posture
Application Under Part II of the Mental Health Ordinance and Ancillary Relief Proceedings Under the MPPO / Hearing in Chambers; Application for Court Sanction of Settlement and Variation of Payments; Reasons for Decision Delivered
Outcome
Increase in payment out to $8,000 per month for the son approved; application concerning transfer of UK property and maintenance for the wife adjourned to allow mediation and negotiation; committee admonished for failing to seek prior Part II sanction and directed to pursue settlement subject to High Court approval
Legal Topics
Appointment of Committee Under Part II MHO, Sanction of Settlements for Mentally Incapacitated Persons, Ancillary Relief and Maintenance, Transfer of Property Acquired With Compensation, Valuation Evidence, Mediation and Alternative Dispute Resolution
Source Language
EN
Mental Health Law Family Law Civil Procedure Property Law Trusts and Estates Appointment of Committee Under Part II MHO Sanction of Settlements for Mentally Incapacitated Persons Ancillary Relief and Maintenance +3 more

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Parties

L

Mentally Incapacitated Person

Committee

Committee to Administer and Manage the Properties of L

Wife

Former Spouse and Ancillary Relief Applicant

Son

Child and Ancillary Relief Applicant

Procedural Posture

Application Under Part II of the Mental Health Ordinance and Ancillary Relief Proceedings Under the MPPO / Hearing in Chambers; Application for Court Sanction of Settlement and Variation of Payments; Reasons for Decision Delivered

Legal Issues

  1. 1 Whether a committee must obtain prior sanction under Part II of the MHO before settling litigation on behalf of a mentally incapacitated person
  2. 2 Whether the settlement reached without prior Part II sanction could be implemented
  3. 3 Whether the valuation relied upon for the UK property was adequate for assessing the settlement

Ratio Decidendi

A committee must obtain prior sanction under Part II of the Mental Health Ordinance before settling litigation on behalf of a mentally incapacitated person; despite the committee's failure to obtain prior sanction the court approved an increase in monthly payment out to $8,000 for the son as being in the MIP’s interest and adjourned the application concerning the UK property to allow mediation and negotiated resolution rather than immediate costly variation in the Family Court.

Court Disposition

Increase in payment out to $8,000 per month for the son approved; application concerning transfer of UK property and maintenance for the wife adjourned to allow mediation and negotiation; committee admonished for failing to seek prior Part II sanction and directed to pursue settlement subject to High Court approval

Orders

  • Approved increase in payment out to $8,000 per month for the son effective as sought
  • Adjourned the committee's application concerning transfer of the UK property and wife's maintenance to 2 August 2006 and directed the committee to attempt settlement through mediation or negotiation in the interim