TO KAN CHI AND OTHERS v. TO KIN WAH AND OTHERS

TO KAN CHI AND OTHERS v. TO KIN WAH AND OTHERS

The court held that the surviving plaintiffs, validly appointed managers and trustees, are entitled to seek court approval to pay necessary and reasonable expenses from the Tong's funds to maintain the temple and its operations; vacancies or death of a co-manager do not prevent such applications absent a legal bar; the specific items sought were, on the evidence, necessary and in the Tong's interest and orders for payment were made accordingly.

Citation
[2025] HKCFI 4054
Parties
Plaintiff/manager: To Kan Chi; Plaintiff/manager: To Kam Chau; 1st Defendant: To Kin Wah; 2nd Defendant: To Yuk Leung (an Infant suing by his Guardian ad litem, To Cheong Lam); 3rd Defendant: To Cheong Lam; 4th Defendant: To Mei Lun; 5th Defendant: To Siu Lam
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 May 2025
Case Number
HCMP509/2002
Procedural Posture
Miscellaneous Proceedings (trust Matters) / Interlocutory Application for Payment Out of Trust Funds; Decision After Hearing
Outcome
Application allowed in part; court authorised payments out of the Tong's funds for specified items and reserved defendants' costs; plaintiffs' costs to be paid from the Tong's funds on a trustee basis
Legal Topics
Payment Out of Trust Funds, Appointment and Validity of Managers/trustees, Trustee Duties and Accounts, Use of Trust Funds for Maintenance and Repairs, Costs and Interim Relief
Source Language
EN
Trusts Property Charity Law Civil Procedure Payment Out of Trust Funds Appointment and Validity of Managers/trustees Trustee Duties and Accounts Use of Trust Funds for Maintenance and Repairs +1 more

Case Brief

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Parties

To Kan Chi

Plaintiff/manager

To Kam Chau

Plaintiff/manager

To Kin Wah

1st Defendant

To Yuk Leung (an Infant suing by his Guardian ad litem, To Cheong Lam)

2nd Defendant

To Cheong Lam

3rd Defendant

To Mei Lun

4th Defendant

To Siu Lam

5th Defendant

Procedural Posture

Miscellaneous Proceedings (trust Matters) / Interlocutory Application for Payment Out of Trust Funds; Decision After Hearing

Legal Issues

  1. 1 Whether the plaintiffs as managers/trustees may obtain court approval to defray specified expenses out of the Tong's funds
  2. 2 Whether the death or vacancy of a co-manager prevents continuation of applications by the surviving manager
  3. 3 Whether specific proposed expenditures (salary increase, repairs, fire safety works, CCTV, elevator reinstatement, contingency fund, annual inspections and accounting fees) are reasonable and in the Tong's best interests

Ratio Decidendi

The court held that the surviving plaintiffs, validly appointed managers and trustees, are entitled to seek court approval to pay necessary and reasonable expenses from the Tong's funds to maintain the temple and its operations; vacancies or death of a co-manager do not prevent such applications absent a legal bar; the specific items sought were, on the evidence, necessary and in the Tong's interest and orders for payment were made accordingly.

Court Disposition

Application allowed in part; court authorised payments out of the Tong's funds for specified items and reserved defendants' costs; plaintiffs' costs to be paid from the Tong's funds on a trustee basis

Orders

  • Leave granted to increase secretary's salary by HK$3,000 per month to HK$15,000 per month
  • An additional sum of HK$2,300,000 to be paid forthwith from HSBC Trustees (Hong Kong) Ltd to the plaintiffs on account for general operation expenses for the period 1 Sep 2022 to 31 Dec 2026