SHIH CHIA CHEONG, administrator of the Estate of SHIH CHIA YING, deceased v. LI LIU ZHU

SHIH CHIA CHEONG, administrator of the Estate of SHIH CHIA YING, deceased v. LI LIU ZHU

The defendant's inconsistent and changing claims over the securities account created a serious conflict of interest with the estate and the minor beneficiary such that, applying s33(3) PAO and having regard to the sizeable estate and the minor's protected statutory interest, the court removed both co-administrators and appointed independent professional administrators (McCabe and Mr Kong) and ordered delivery up of assets and vesting; costs awarded to the plaintiff on an indemnity basis and plaintiff's costs to be paid from the estate.

Citation
SHIH CHIA CHEONG, administrator of the Estate of SHIH CHIA YING, deceased v. LI LIU ZHU
Parties
Co Administrator of the Estate of Shih Chia Ying (applicant): SHIH CHIA CHEONG; Co Administrator of the Estate of Shih Chia Ying; Beneficiary (defendant): LI LIU ZHU
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 November 2012
Case Number
HCMP1891/2011
Procedural Posture
Application Under S33 Probate and Administration Ordinance (estate Administration) / Hearing and Judgment (reasons for Decision) 26 September 2012
Outcome
Application allowed: both plaintiff and defendant removed as administrators; McCabe International Trustee Limited and Mr Kong How Chi Johnson appointed as substituted administrators; consequential vesting orders and delivery up of assets ordered; costs awarded to plaintiff on an indemnity basis and plaintiff's costs...
Legal Topics
Removal of Administrator, Statutory Trust for Minor, Vesting Orders, Accounts of Administrators, Conflict of Interest
Source Language
EN
Probate Trusts Estate Administration Civil Procedure Removal of Administrator Statutory Trust for Minor Vesting Orders Accounts of Administrators +1 more

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Parties

SHIH CHIA CHEONG

Co Administrator of the Estate of Shih Chia Ying (applicant)

LI LIU ZHU

Co Administrator of the Estate of Shih Chia Ying; Beneficiary (defendant)

Procedural Posture

Application Under S33 Probate and Administration Ordinance (estate Administration) / Hearing and Judgment (reasons for Decision) 26 September 2012

Legal Issues

  1. 1 Whether to remove a co-administrator under s33(3) PAO
  2. 2 Whether a co-administrator's changed claim over estate assets creates a conflict of interest warranting removal
  3. 3 Whether professional administrators should be appointed given size of estate and minority beneficiary

Ratio Decidendi

The defendant's inconsistent and changing claims over the securities account created a serious conflict of interest with the estate and the minor beneficiary such that, applying s33(3) PAO and having regard to the sizeable estate and the minor's protected statutory interest, the court removed both co-administrators and appointed independent professional administrators (McCabe and Mr Kong) and ordered delivery up of assets and vesting; costs awarded to the plaintiff on an indemnity basis and plaintiff's costs to be paid from the estate.

Court Disposition

Application allowed: both plaintiff and defendant removed as administrators; McCabe International Trustee Limited and Mr Kong How Chi Johnson appointed as substituted administrators; consequential vesting orders and delivery up of assets ordered; costs awarded to plaintiff on an indemnity basis and plaintiff's costs...

Orders

  • Plaintiff and defendant removed as administrators of the estate of Shih Chia Ying and substituted by McCabe International Trustee Limited and Mr Kong How Chi Johnson
  • Defendant ordered to provide an account and to deliver up the assets of the estate to the substituted administrators