MAN MI SANG AND ANOTHER v. MAN SHEK TONG AND OTHERS

MAN MI SANG AND ANOTHER v. MAN SHEK TONG AND OTHERS

Plaintiffs failed to prove the Land was let below market rent because there was no open, transparent market for Tso lands in San Tin, the plaintiffs' comparables were unreliable, and the defendants demonstrated they had taken reasonable steps and acted with due diligence; there was no established custom requiring managers to obtain members' consent; accordingly defendants did not breach fiduciary duties and the claim is dismissed.

Citation
[2018] HKCFI 2755
Parties
1st Plaintiff: Man Mi Sang; 2nd Plaintiff: Man Luk Sing; 1st Defendant: Man Shek Tong; 2nd Defendant: Man On Sum
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 December 2018
Case Number
HCA881/2012
Procedural Posture
Breach of Trustees' Duty / Trust and Land Dispute (tso) / Judgment at Trial (court of First Instance)
Outcome
Claim dismissed against the 1st and 2nd Defendants (plaintiffs' claim dismissed).
Legal Topics
Breach of Trust, Market Valuation of Land, Custom and Practice of Tso Management, Duty of Managers/trustees, Remedies and Quantum
Source Language
EN
Trusts and Fiduciary Duties Property / Land Law Equity Civil Procedure Breach of Trust Market Valuation of Land Custom and Practice of Tso Management Duty of Managers/trustees +1 more

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Parties

Man Mi Sang

1st Plaintiff

Man Luk Sing

2nd Plaintiff

Man Shek Tong

1st Defendant

Man On Sum

2nd Defendant

Procedural Posture

Breach of Trustees' Duty / Trust and Land Dispute (tso) / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 Whether the Tenancy Agreement was void or the tenants entitled to possession
  2. 2 Whether the managers (defendants) breached fiduciary duties by leasing Tso land at undervalue
  3. 3 Whether there existed a customary duty to obtain members' consent before disposing or leasing Tso land

Ratio Decidendi

Plaintiffs failed to prove the Land was let below market rent because there was no open, transparent market for Tso lands in San Tin, the plaintiffs' comparables were unreliable, and the defendants demonstrated they had taken reasonable steps and acted with due diligence; there was no established custom requiring managers to obtain members' consent; accordingly defendants did not breach fiduciary duties and the claim is dismissed.

Court Disposition

Claim dismissed against the 1st and 2nd Defendants (plaintiffs' claim dismissed).

Orders

  • Claim dismissed
  • Order nisi that costs of the action be paid by the 1st and 2nd Plaintiffs to the 1st and 2nd Defendants; costs to be made absolute 14 days after handing down of judgment