RE MADAM POON YAU-CHEONG t/a KWOK FU RESTAURANT

RE MADAM POON YAU-CHEONG t/a KWOK FU RESTAURANT

On the totality of the payments, the in‑premises announcement, Madam Poon's active conduct in running the business, the signed acknowledgement by Madam Yau dated 29 June 1981 and subsequent documents prepared and used by Madam Poon and her solicitors, the court finds that Madam Poon intended to and did become a two‑thirds partner of Kwok Fu Restaurant from about 2 December 1980 until cessation on or about 6 September 1981; she was not a trustee and the partnership relationship is established.

Citation
RE MADAM POON YAU-CHEONG t/a KWOK FU RESTAURANT
Parties
Plaintiff/creditor: WONG Sai-ching; Plaintiff/creditor: CHOW Tak-tong; Defendant/opposing Debtor: Madam POON Yau-cheong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 May 1982
Case Number
HCB104/1981
Procedural Posture
Bankruptcy / Judgment on Framed Issue
Outcome
Judgment for plaintiffs; defendant found to have been a partner (2/3 share) from about 2 December 1980 to about 6 September 1981; not a trustee.
Legal Topics
Formation of Partnership, Partnership by Estoppel (holding Out), Trustee Vs Partner Characterization, Effect of Written Acknowledgement as Evidence, Costs Sanction for Misleading the Court
Source Language
EN
Partnership Law Bankruptcy Law Evidence Civil Procedure Costs Formation of Partnership Partnership by Estoppel (holding Out) Trustee Vs Partner Characterization Effect of Written Acknowledgement as Evidence +1 more

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Parties

WONG Sai-ching

Plaintiff/creditor

CHOW Tak-tong

Plaintiff/creditor

Madam POON Yau-cheong

Defendant/opposing Debtor

Procedural Posture

Bankruptcy / Judgment on Framed Issue

Legal Issues

  1. 1 Whether Madam Poon was a partner of Kwok Fu Restaurant during petitioners' employment (approx. 1 Dec 1980 to 6 Sep 1981)
  2. 2 Whether Madam Poon was instead a trustee/caretaker pending incorporation of a limited company
  3. 3 Whether holding out or conduct estops Madam Poon from denying partnership

Ratio Decidendi

On the totality of the payments, the in‑premises announcement, Madam Poon's active conduct in running the business, the signed acknowledgement by Madam Yau dated 29 June 1981 and subsequent documents prepared and used by Madam Poon and her solicitors, the court finds that Madam Poon intended to and did become a two‑thirds partner of Kwok Fu Restaurant from about 2 December 1980 until cessation on or about 6 September 1981; she was not a trustee and the partnership relationship is established.

Court Disposition

Judgment for plaintiffs; defendant found to have been a partner (2/3 share) from about 2 December 1980 to about 6 September 1981; not a trustee.

Orders

  • Find that Madam Poon Yau‑cheong became a partner of Kwok Fu Restaurant with a two‑thirds share from about 2 December 1980 to about 6 September 1981.
  • Costs of the trial and costs reserved on 30 October 1981 and 13 November 1981 to be costs for the plaintiffs against the defendant on a common‑fund basis.