CHEN TEK YEE AND OTHERS v. CHAN MOON SHING AND ANOTHER

CHEN TEK YEE AND OTHERS v. CHAN MOON SHING AND ANOTHER

The court found on the facts that the deceased repeatedly promised Chen and her daughters a permanent home and their expenditure and occupation constituted detrimental reliance on that contractual licence; those assurances and conduct gave rise to a constructive trust protecting life sole and exclusive occupation of the Property in favour of Chen, Lin and Wendy and that Chan and Ng, having notice and having purchased at a reduced price, were bound by that trust; accordingly the declaration of life occupation was granted while the claim that Chen was beneficial owner of the 50% share was dismissed.

Citation
CHEN TEK YEE AND OTHERS v. CHAN MOON SHING AND ANOTHER
Parties
1st Plaintiff: Chen Tek Yee; 2nd Plaintiff: Liang Lin Lin; 3rd Plaintiff: Leung Wai Wendy; 1st Defendant: Chan Moon Shing; 2nd Defendant: Ng Goon Lau, Joseph
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 May 2015
Case Number
HCA954/2010
Procedural Posture
Civil Action Property/constructive Trust / Judgment (court of First Instance)
Outcome
Declaration granted that the plaintiffs (Chen, Lin, Wendy) are entitled to sole and exclusive occupation of the Property during their respective lifetimes; plaintiffs' claim to be beneficial owner of the 50% share dismissed.
Legal Topics
Common Intention Constructive Trust, Contractual Licence, Constructive Trust, Bona Fide Purchaser for Value Without Notice, Life Occupation/occupation Rights
Source Language
EN
Trusts Land Law Property Equity Common Intention Constructive Trust Contractual Licence Constructive Trust Bona Fide Purchaser for Value Without Notice +1 more

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Parties

Chen Tek Yee

1st Plaintiff

Liang Lin Lin

2nd Plaintiff

Leung Wai Wendy

3rd Plaintiff

Chan Moon Shing

1st Defendant

Ng Goon Lau, Joseph

2nd Defendant

Procedural Posture

Civil Action Property/constructive Trust / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether a common intention constructive trust existed over the 50% share in favour of the applicant
  2. 2 Whether the contractual licence and assurances given by the deceased gave rise to a constructive trust enforcing life occupation rights for the plaintiffs
  3. 3 Whether the assignees (Chan and Ng) took free of any equitable interest or were bound by the trust/encumbrance

Ratio Decidendi

The court found on the facts that the deceased repeatedly promised Chen and her daughters a permanent home and their expenditure and occupation constituted detrimental reliance on that contractual licence; those assurances and conduct gave rise to a constructive trust protecting life sole and exclusive occupation of the Property in favour of Chen, Lin and Wendy and that Chan and Ng, having notice and having purchased at a reduced price, were bound by that trust; accordingly the declaration of life occupation was granted while the claim that Chen was beneficial owner of the 50% share was dismissed.

Court Disposition

Declaration granted that the plaintiffs (Chen, Lin, Wendy) are entitled to sole and exclusive occupation of the Property during their respective lifetimes; plaintiffs' claim to be beneficial owner of the 50% share dismissed.

Orders

  • Declaration that the 1st, 2nd and 3rd plaintiffs are entitled to sole and exclusive occupation of the Property during each of their respective lifetimes for so long as each wishes to continue to occupy the Property to the exclusion of Chan, Ng and their successors-in-title
  • Costs order nisi that Ng shall pay plaintiffs half their costs of the action in respect of their claim (excluding costs of the counterclaim), to be taxed if not agreed