YI CHUN NAVIGATION INC. v. LU WEN YUN, JENNY AND ANOTHER

YI CHUN NAVIGATION INC. v. LU WEN YUN, JENNY AND ANOTHER

Having evaluated the documentary, expert and factual evidence and rejected Madam Lu as an unreliable witness and the Shum expert evidence as unsafe, the court found the OOCL declarations referred to OOCL shares and were authentic; Dr Strach's expert conclusions were persuasive; consequently Madam Lu holds 350,000 OOCL shares on trust for J&D Industrial (HK) Limited and the shares allotted to her on capitalisation of US$1,500,000 in Liyou are held on trust for Yi Chun; orders and costs follow.

Citation
YI CHUN NAVIGATION INC. v. LU WEN YUN, JENNY AND ANOTHER
Parties
Petitioner/plaintiff: Yi Chun Navigation Inc.; 1st Respondent / 1st Defendant: Lu Wen Yun (Jenny); 2nd Respondent / 2nd Defendant: J&D Industrial (HK) Limited; Official Receiver (excused): The Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 January 2011
Case Number
HCCW565/2006
Procedural Posture
Companies (winding Up) No. 565 of 2006 and High Court Action No. 2371 of 2005 (heard Together) / Judgment (trial)
Outcome
Judgment for Yi Chun Navigation Inc.; declarations that Madam Lu holds 350,000 OOCL shares on trust for J&D Industrial (HK) Limited and that the shares allotted to Madam Lu on capitalisation of US$1,500,000 in Liyou are held on trust for Yi Chun Navigation Inc.; costs awarded to applicant on indemnity basis with a...
Legal Topics
Declaration of Trust, Resulting Trust, Share Ownership, Authenticity of Signatures, Expert Evidence, Indemnity Costs
Source Language
EN
Company Law Trusts Evidence (forensic Handwriting) Civil Procedure Costs Declaration of Trust Resulting Trust Share Ownership +3 more

Case Brief

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Parties

Yi Chun Navigation Inc.

Petitioner/plaintiff

Lu Wen Yun (Jenny)

1st Respondent / 1st Defendant

J&D Industrial (HK) Limited

2nd Respondent / 2nd Defendant

The Official Receiver

Official Receiver (excused)

Procedural Posture

Companies (winding Up) No. 565 of 2006 and High Court Action No. 2371 of 2005 (heard Together) / Judgment (trial)

Legal Issues

  1. 1 Whether OOCL shares registered in Madam Lu's name are held on trust for the Company
  2. 2 Whether shares allotted to Madam Lu in Liyou following capitalisation of an advance are held on resulting or express trust for Yi Chun/the Company
  3. 3 Whether the disputed declarations of trust and audit confirmation letters were authentic or forged

Ratio Decidendi

Having evaluated the documentary, expert and factual evidence and rejected Madam Lu as an unreliable witness and the Shum expert evidence as unsafe, the court found the OOCL declarations referred to OOCL shares and were authentic; Dr Strach's expert conclusions were persuasive; consequently Madam Lu holds 350,000 OOCL shares on trust for J&D Industrial (HK) Limited and the shares allotted to her on capitalisation of US$1,500,000 in Liyou are held on trust for Yi Chun; orders and costs follow.

Court Disposition

Judgment for Yi Chun Navigation Inc.; declarations that Madam Lu holds 350,000 OOCL shares on trust for J&D Industrial (HK) Limited and that the shares allotted to Madam Lu on capitalisation of US$1,500,000 in Liyou are held on trust for Yi Chun Navigation Inc.; costs awarded to applicant on indemnity basis with a...

Orders

  • Declaration that Madam Lu holds 350,000 OOCL shares on trust for J&D Industrial (HK) Limited
  • Declaration that shares allotted to Madam Lu on capitalisation of US$1,500,000 in Liyou are held on trust for Yi Chun Navigation Inc.