BEIJING HENDERSON PROPERTIES CO LTD v. STRAIT PEACEFUL REUNIFICATION FOUNDATION LTD AND ANOTHER

BEIJING HENDERSON PROPERTIES CO LTD v. STRAIT PEACEFUL REUNIFICATION FOUNDATION LTD AND ANOTHER

Zhaotian failed to prove the alleged oral agreement of 1.11.2006 because its oral testimony conflicted with pleaded case, was unsupported by contemporaneous documents, was inherently improbable and witnesses were found unreliable; in the second action Foundation and Tian Li breached the Property Settlement Agreements and misapplied the Advance, and they could not establish that Mr Ho had authority to direct payments, entitling Beijing Henderson to recover the repayable sum.

Citation
BEIJING HENDERSON PROPERTIES CO LTD v. STRAIT PEACEFUL REUNIFICATION FOUNDATION LTD AND ANOTHER
Parties
Plaintiff (hca825/2008): Shenzhen Zhaotian Investments Co Ltd; Defendant (hca825/2008); Plaintiff (hca899/2009): Beijing Henderson Properties Co Ltd; Defendant (hca825/2008): Henderson Land Development Co Ltd; Defendant (hca899/2009): Strait Peaceful Reunification Foundation Ltd; Defendant (hca899/2009): Tian Li (HK) Trading Ltd
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 March 2012
Case Number
HCA899/2009
Procedural Posture
Civil (commercial) / Judgment (trial)
Outcome
HCA825/2008 dismissed with costs to the Henderson Companies and counterclaim dismissed with no order as to costs; HCA899/2009 judgment for Beijing Henderson for HK$16,017,941 with costs to Beijing Henderson; certificate for two Counsel in each case.
Legal Topics
Oral Agreement, Agency and Authority, Breach of Contract, Credibility of Witnesses, Remedies and Recovery
Source Language
EN
Contract Commercial Law Evidence Oral Agreement Agency and Authority Breach of Contract Credibility of Witnesses Remedies and Recovery

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Parties

Shenzhen Zhaotian Investments Co Ltd

Plaintiff (hca825/2008)

Beijing Henderson Properties Co Ltd

Defendant (hca825/2008); Plaintiff (hca899/2009)

Henderson Land Development Co Ltd

Defendant (hca825/2008)

Strait Peaceful Reunification Foundation Ltd

Defendant (hca899/2009)

Tian Li (HK) Trading Ltd

Defendant (hca899/2009)

Procedural Posture

Civil (commercial) / Judgment (trial)

Legal Issues

  1. 1 Whether an oral agreement was made on 1 November 2006 to pay $43,000,000 for consultancy services
  2. 2 Whether Mr Ho had authority to instruct Foundation and Tian Li to pay $12,966,000/$12,996,000 to Zhaotian
  3. 3 Whether Foundation and Tian Li breached the Property Settlement Agreements and must repay the Advance to Beijing Henderson

Ratio Decidendi

Zhaotian failed to prove the alleged oral agreement of 1.11.2006 because its oral testimony conflicted with pleaded case, was unsupported by contemporaneous documents, was inherently improbable and witnesses were found unreliable; in the second action Foundation and Tian Li breached the Property Settlement Agreements and misapplied the Advance, and they could not establish that Mr Ho had authority to direct payments, entitling Beijing Henderson to recover the repayable sum.

Court Disposition

HCA825/2008 dismissed with costs to the Henderson Companies and counterclaim dismissed with no order as to costs; HCA899/2009 judgment for Beijing Henderson for HK$16,017,941 with costs to Beijing Henderson; certificate for two Counsel in each case.

Orders

  • HCA825/2008 dismissed with costs to the Henderson Companies
  • Counterclaim in HCA825/2008 dismissed with no order as to costs