FRED LEE and CHOW WAI LAN, CHRISTINE, trustee of the property of LAW SHUI KEI, a bankrupt v. LEE & WU (a firm) AND ANOTHER

FRED LEE and CHOW WAI LAN, CHRISTINE, trustee of the property of LAW SHUI KEI, a bankrupt v. LEE & WU (a firm) AND ANOTHER

Absent any claims after public advertisement and with the bankrupt's assertion unsubstantiated by documentary evidence, the court declares that the monies in the client account beneficially vest in the bankrupt's estate. The Trustees are directed to advertise their intention to distribute and, if no claims are forthcoming, to distribute the monies to creditors with protection under s.29 of the Trustees Ordinance; costs to be paid from the estate.

Citation
FRED LEE and CHOW WAI LAN, CHRISTINE, trustee of the property of LAW SHUI KEI, a bankrupt v. LEE & WU (a firm) AND ANOTHER
Parties
Trustees in Bankruptcy (plaintiffs): Fred Lee and Chow Wai Lan Christine; Cessation Agent and 1st Defendant: Lee & Wu; 2nd Defendant; Adjudicated Bankrupt: Law Shui Kei
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 September 2017
Case Number
HCMP504/2016
Procedural Posture
Bankruptcy Application for Directions / Miscellaneous Proceedings / Directions Hearing — Judgment on Application (decision)
Outcome
Declaration that the monies in the Firm's client account are beneficially vested in the bankruptcy estate of Law Shui Kei; directions given for notice and distribution; costs payable from the estate.
Legal Topics
Beneficial Ownership of Client Funds, Trust Funds, Distribution of Assets, Public Notice and Claims, Protection Under Trustees Ordinance S.29, Solicitors' Accounts Rules Compliance
Source Language
EN
Bankruptcy Trusts Civil Procedure Solicitors' Accounts Beneficial Ownership of Client Funds Trust Funds Distribution of Assets Public Notice and Claims +2 more

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Parties

Fred Lee and Chow Wai Lan Christine

Trustees in Bankruptcy (plaintiffs)

Lee & Wu

Cessation Agent and 1st Defendant

Law Shui Kei

2nd Defendant; Adjudicated Bankrupt

Procedural Posture

Bankruptcy Application for Directions / Miscellaneous Proceedings / Directions Hearing — Judgment on Application (decision)

Legal Issues

  1. 1 Whether monies in the Firm's client account are beneficially owned by the bankrupt or by clients
  2. 2 Whether the Accountant's Report / compliance with Solicitors' Accounts Rules establishes that client claims are secured
  3. 3 Whether the Trustees may distribute the client account funds after advertisement under Trustees Ordinance s.29 and related provisions

Ratio Decidendi

Absent any claims after public advertisement and with the bankrupt's assertion unsubstantiated by documentary evidence, the court declares that the monies in the client account beneficially vest in the bankrupt's estate. The Trustees are directed to advertise their intention to distribute and, if no claims are forthcoming, to distribute the monies to creditors with protection under s.29 of the Trustees Ordinance; costs to be paid from the estate.

Court Disposition

Declaration that the monies in the Firm's client account are beneficially vested in the bankruptcy estate of Law Shui Kei; directions given for notice and distribution; costs payable from the estate.

Orders

  • Declaration that monies in the client account vested in the bankruptcy estate of Law Shui Kei
  • Trustees to give at least three months' notice by advertisement in the Gazette and two local newspapers of their intention to distribute the monies