SUN LEGEND INVESTMENTS LTD v. HO YUK WAH, DAVID AND OTHERS

SUN LEGEND INVESTMENTS LTD v. HO YUK WAH, DAVID AND OTHERS

On the balance of probabilities the court found a Fee Offsetting Arrangement existed as described in the 4 October 1991 letter and consequent conduct; the Firm was entitled to set off monies held on trust against legitimately billed time-based fees, the developers' claims were dismissed, NWD was not shown to be liable, the Beijing bill was ordered taxed (out of time but special circumstances found) subject to an interim payment of HK$2,000,000, and judgment for the Firm on the Dongguan bill was for HK$4,979,111.28.

Citation
SUN LEGEND INVESTMENTS LTD v. HO YUK WAH, DAVID AND OTHERS
Parties
Plaintiff (dongguan Action) / Defendant (counterclaim): Sun Legend Investments Limited; Defendant (original Action) / Plaintiff (counterclaim): Ho Yuk Wah (David); Defendant (original Action) / Plaintiff (counterclaim): Ho Yuk Kuen (Jade); Defendant (original Action) / Plaintiff (counterclaim): Chan Man Ho (Brian); Defendant (original Action) / Counterclaimant (solicitors): David Y W Ho & Co (the Firm); Defendant (by Counterclaim) / Developer Group Entity: New World Developments Limited (NWD); Plaintiff (beijing Action): Beijing Chongwen-New World Properties Development Co Ltd; Plaintiff (beijing Action): China New World Electronics Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 September 2009
Case Number
HCA1212/2002
Procedural Posture
Consolidated Civil Actions Concerning Contractual Terms and Fees Payable to Solicitors / Judgment (court of First Instance)
Outcome
Claims by developers dismissed; judgment for the Firm on counterclaims; Dongguan judgment for HK$4,979,111.28; Beijing bill to be taxed with interim payment ordered; NWD held not liable for fees
Legal Topics
Fee Offsetting Arrangements, Quantum Meruit, Taxation of Solicitor's Bill (s67 Lpo), Implied Terms, Set Off and Trust Accounting, Solicitors' Practice Rules
Source Language
EN
Contract Equity and Restitution Professional Conduct of Solicitors Property Law Civil Procedure Fee Offsetting Arrangements Quantum Meruit Taxation of Solicitor's Bill (s67 Lpo) +3 more

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Parties

Sun Legend Investments Limited

Plaintiff (dongguan Action) / Defendant (counterclaim)

Ho Yuk Wah (David)

Defendant (original Action) / Plaintiff (counterclaim)

Ho Yuk Kuen (Jade)

Defendant (original Action) / Plaintiff (counterclaim)

Chan Man Ho (Brian)

Defendant (original Action) / Plaintiff (counterclaim)

David Y W Ho & Co (the Firm)

Defendant (original Action) / Counterclaimant (solicitors)

New World Developments Limited (NWD)

Defendant (by Counterclaim) / Developer Group Entity

Beijing Chongwen-New World Properties Development Co Ltd

Plaintiff (beijing Action)

China New World Electronics Limited

Plaintiff (beijing Action)

Procedural Posture

Consolidated Civil Actions Concerning Contractual Terms and Fees Payable to Solicitors / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether a fee off-setting arrangement (FOA) existed between the solicitors and the developers
  2. 2 Whether the solicitors were entitled to deduct funds held on trust to set off outstanding time-based fees
  3. 3 Whether liability for fees fell on NWD or the joint-venture developer entities

Ratio Decidendi

On the balance of probabilities the court found a Fee Offsetting Arrangement existed as described in the 4 October 1991 letter and consequent conduct; the Firm was entitled to set off monies held on trust against legitimately billed time-based fees, the developers' claims were dismissed, NWD was not shown to be liable, the Beijing bill was ordered taxed (out of time but special circumstances found) subject to an interim payment of HK$2,000,000, and judgment for the Firm on the Dongguan bill was for HK$4,979,111.28.

Court Disposition

Claims by developers dismissed; judgment for the Firm on counterclaims; Dongguan judgment for HK$4,979,111.28; Beijing bill to be taxed with interim payment ordered; NWD held not liable for fees

Orders

  • Developers' claims dismissed and judgment for the Firm and its partners on claims
  • Judgment for the Firm in relation to the Dongguan action in the sum HK$4,979,111.28