LLOYDS BANK INTERNATIONAL LTD AND ANOTHER v. VICTOR FOLCH VERNET AND OTHERS

LLOYDS BANK INTERNATIONAL LTD AND ANOTHER v. VICTOR FOLCH VERNET AND OTHERS

The court granted the application permitting Mr. Antony Lo and Great Eagle Company Limited to advance funds to meet the guarantee obligations because the proposed loan was a legitimate asset‑preserving manoeuvre, there was no real substance to the plaintiffs' resistance on the urgent facts presented, and counsel's...

Source-derived case information.

Citation
LLOYDS BANK INTERNATIONAL LTD AND ANOTHER v. VICTOR FOLCH VERNET AND OTHERS
Parties
1st Plaintiff: LLOYDS BANK INTERNATIONAL LIMITED; 2nd Plaintiff: LBI FINANCE (HONG KONG) LIMITED; 1st Defendant: VICTOR FOLCH VERNET; 2nd Defendant: STELLA MARIS URIGUEN FOLCH VERNET; 3rd Defendant: HIGH PLATEAU ENTERPRISES LIMITED; 4th Defendant: INMOBILIARIA TIERRA DEL FUEGO S.A.; 5th Defendant: HONG KONG AND SHANGHAI BANKING CORPORATION; 6th Defendant: EDDIE LO MAN PUNG; 7th Defendant: ANTONY LO HONG SUI; 8th Defendant: RICKY LO MAN KIT; 9th Defendant: DAVID LO MAN CHING; 10th Defendant: TOM TONG KAY TAK; 11th Defendant: HILLORY LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 April 1983
Case Number
HCA9151/1982
Procedural Posture
Civil (injunction Mareva) / Interlocutory (urgent Application / in Chambers)
Outcome
Application by 7th defendant and Great Eagle Company Limited acceded to; court ordered amended draft order as read in chambers.
Legal Topics
Mareva Injunction, Guarantor Step in Rights, Urgent Interim Relief, Joint Venture Obligations, Third‑party Funding
Source Language
en
Civil Procedure Equity Injunctions Guarantees and Indemnities Company Law Mareva Injunction Guarantor Step in Rights Urgent Interim Relief +2 more

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Parties

LLOYDS BANK INTERNATIONAL LIMITED

1st Plaintiff

LBI FINANCE (HONG KONG) LIMITED

2nd Plaintiff

VICTOR FOLCH VERNET

1st Defendant

STELLA MARIS URIGUEN FOLCH VERNET

2nd Defendant

HIGH PLATEAU ENTERPRISES LIMITED

3rd Defendant

INMOBILIARIA TIERRA DEL FUEGO S.A.

4th Defendant

HONG KONG AND SHANGHAI BANKING CORPORATION

5th Defendant

EDDIE LO MAN PUNG

6th Defendant

ANTONY LO HONG SUI

7th Defendant

RICKY LO MAN KIT

8th Defendant

DAVID LO MAN CHING

9th Defendant

TOM TONG KAY TAK

10th Defendant

HILLORY LIMITED

11th Defendant

Procedural Posture

Civil (injunction Mareva) / Interlocutory (urgent Application / in Chambers)

Legal Issues

  1. 1 Whether guarantors (and a related investor) may lend funds to a defendant to meet guarantee obligations pending the proceedings
  2. 2 Whether such proposed loan is a permissible preservation of assets or a device to defeat the plaintiffs' rights
  3. 3 Whether a demand on the guarantor is a prerequisite to liability such that stepping in before demand creates issues for the plaintiffs

Ratio Decidendi

The court granted the application permitting Mr. Antony Lo and Great Eagle Company Limited to advance funds to meet the guarantee obligations because the proposed loan was a legitimate asset‑preserving manoeuvre, there was no real substance to the plaintiffs' resistance on the urgent facts presented, and counsel's statements were sufficient for an urgent determination subject to remedies if inaccurate.

Court Disposition

Application by 7th defendant and Great Eagle Company Limited acceded to; court ordered amended draft order as read in chambers.

Orders

  • Application granted; court to make amended draft order as read by the judge in chambers