EMPEROR FUTURES LTD AND ANOTHER v. HUBBARD CO LTD AND ANOTHER

EMPEROR FUTURES LTD AND ANOTHER v. HUBBARD CO LTD AND ANOTHER

The court accepted plaintiffs' evidence and rejected defendants' allegations of misrepresentation and undue influence, found the Transfer was an inadvertent settlement clerk error which the guarantor, once informed, instructed should stand, held the corporate defendants liable for the debit balances under the Client and Loan Agreements and Ms Ng liable under the Guarantee upon proper demand, dismissed counterclaims, and entered judgment for the plaintiffs for the stated sums with interest and costs (including indemnity costs against Ms Ng).

Citation
EMPEROR FUTURES LTD AND ANOTHER v. HUBBARD CO LTD AND ANOTHER
Parties
1st Plaintiff: Emperor Futures Limited; 2nd Plaintiff: Emperor Finance Limited; 1st Defendant (hca 12310/1997): La Belle Fashions Limited; 1st Defendant (hca 12312/1997): Hubbard Company Limited; 2nd Defendant / Guarantor: Ng Siu My (Amy)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 May 2001
Case Number
HCA12312/1997
Procedural Posture
Civil Debt and Guarantee Claims Arising From Futures Trading and Margin Lending / Judgment After Trial in Court of First Instance (deputy High Court Judge)
Outcome
Judgment entered for plaintiffs; counterclaims dismissed.
Legal Topics
Misrepresentation, Undue Influence, Breach of Exchange Rules, Service of Demand, Accounting Error (mistaken Transfer), Liquidation/close Out of Futures Positions, Costs and Indemnity Costs
Source Language
EN
Contract Guarantee Securities and Futures Law Civil Procedure Misrepresentation Undue Influence Breach of Exchange Rules Service of Demand +3 more

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Parties

Emperor Futures Limited

1st Plaintiff

Emperor Finance Limited

2nd Plaintiff

La Belle Fashions Limited

1st Defendant (hca 12310/1997)

Hubbard Company Limited

1st Defendant (hca 12312/1997)

Ng Siu My (Amy)

2nd Defendant / Guarantor

Procedural Posture

Civil Debt and Guarantee Claims Arising From Futures Trading and Margin Lending / Judgment After Trial in Court of First Instance (deputy High Court Judge)

Legal Issues

  1. 1 Whether defendants were liable for debit balances under Client Agreement and Loan Agreement
  2. 2 Whether guarantor (Ms Ng) was bound and whether proper written demand had been served
  3. 3 Whether misrepresentations or undue influence vitiated the agreements

Ratio Decidendi

The court accepted plaintiffs' evidence and rejected defendants' allegations of misrepresentation and undue influence, found the Transfer was an inadvertent settlement clerk error which the guarantor, once informed, instructed should stand, held the corporate defendants liable for the debit balances under the Client and Loan Agreements and Ms Ng liable under the Guarantee upon proper demand, dismissed counterclaims, and entered judgment for the plaintiffs for the stated sums with interest and costs (including indemnity costs against Ms Ng).

Court Disposition

Judgment entered for plaintiffs; counterclaims dismissed.

Orders

  • Judgment against La Belle Fashions Limited (HCA 12310/1997) for HKD 3,018,952.73 with interest on HKD 3,003,705.90 at 3% per annum above HSBC best lending rate.
  • Judgment against Ng Siu My (Amy) in HCA 12310/1997 for HKD 3,018,952.73 with interest at 2% per month.