CHOW HOW YEEN MARGARET AND OTHERS v. WEX PHARMACEUTICALS INC. AND ANOTHER

CHOW HOW YEEN MARGARET AND OTHERS v. WEX PHARMACEUTICALS INC. AND ANOTHER

The Final Judgment in PRC determining ownership of the China Patent took effect on its date of issue and thereby falsified the CP Representation from that date; Mr Shum knowingly or recklessly concealed that loss and made fraudulent representations (including as to GlobalMed), plaintiffs relied on those representations when entering Distribution Agreements and purchasing shares, and limitation was postponed by deliberate concealment until plaintiffs discovered the fraud on 23 September 2011, so the writ filed 3 April 2013 was timely; plaintiffs entitled to damages, interest and costs as ordered.

Citation
CHOW HOW YEEN MARGARET AND OTHERS v. WEX PHARMACEUTICALS INC. AND ANOTHER
Parties
1st Plaintiff: CHOW HOW YEEN MARGARET; 2nd Plaintiff: GAO CHENG (XIE LI) COMPANY LIMITED; 3rd Plaintiff: MUSCULAR INVESTMENT COMPANY LIMITED; 1st Defendant: WEX PHARMACEUTICALS INC.; 2nd Defendant: WEX MEDICAL LIMITED; 1st Third Party: FRANK HAY KONG SHUM; 2nd Third Party: GRACE WAI LAN LEONG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 January 2017
Case Number
HCA537/2013
Procedural Posture
Civil Fraudulent Misrepresentation Involving Share Purchases and Patent Ownership / Judgment at Court of First Instance (hca 537/2013)
Outcome
Judgment for the Plaintiffs
Legal Topics
Fraudulent Misrepresentation, Limitation (deliberate Concealment), Damages for Investment Loss, Patent Ownership, Agency and Corporate Representation
Source Language
EN
Commercial Law Tort Contract Intellectual Property Civil Procedure Fraudulent Misrepresentation Limitation (deliberate Concealment) Damages for Investment Loss +2 more

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Parties

CHOW HOW YEEN MARGARET

1st Plaintiff

GAO CHENG (XIE LI) COMPANY LIMITED

2nd Plaintiff

MUSCULAR INVESTMENT COMPANY LIMITED

3rd Plaintiff

WEX PHARMACEUTICALS INC.

1st Defendant

WEX MEDICAL LIMITED

2nd Defendant

FRANK HAY KONG SHUM

1st Third Party

GRACE WAI LAN LEONG

2nd Third Party

Procedural Posture

Civil Fraudulent Misrepresentation Involving Share Purchases and Patent Ownership / Judgment at Court of First Instance (hca 537/2013)

Legal Issues

  1. 1 Whether representations were made as to ownership of China Patent and existence/ownership of GlobalMed
  2. 2 Whether the representations were fraudulent
  3. 3 Whether a Share Agreement existed

Ratio Decidendi

The Final Judgment in PRC determining ownership of the China Patent took effect on its date of issue and thereby falsified the CP Representation from that date; Mr Shum knowingly or recklessly concealed that loss and made fraudulent representations (including as to GlobalMed), plaintiffs relied on those representations when entering Distribution Agreements and purchasing shares, and limitation was postponed by deliberate concealment until plaintiffs discovered the fraud on 23 September 2011, so the writ filed 3 April 2013 was timely; plaintiffs entitled to damages, interest and costs as ordered.

Court Disposition

Judgment for the Plaintiffs

Orders

  • Judgment for the Plaintiffs in the sums of CAD471,882.57, CAD718,993.45 and CAD194,400.00 respectively or their equivalent at time of payment
  • On a nisi basis, interest on the judgment sums at judgment rate from the date of respective purchase of the shares to date of payment