NG, ROSE KAI CHING AND OTHERS v. LIANG YUM SHING HOWARD (in his personal capacity and as the executor and trustee of the estate of LIANG TING SEN THOMAS, deceased) AND ANOTHER

NG, ROSE KAI CHING AND OTHERS v. LIANG YUM SHING HOWARD (in his personal capacity and as the executor and trustee of the estate of LIANG TING SEN THOMAS, deceased) AND ANOTHER

Court found plaintiffs did agree to the narrow corporate structure that a BVI holding company (Mega Best) be formed with beneficiaries allotted shares in their will proportions and that Mega Best held the legal title as trustee; however there was no informed consent to abandon rights under the Will or to complete administration; Howard failed to make full and frank disclosure, breached fiduciary duties (fair-dealing and other duties), did not complete administration, and therefore was not entitled to estoppel or to have transactions upheld as conclusive; consequence: Howard removed as executor and trustee and an independent administrator to be appointed, with further directions as to...

Citation
[2023] HKCFI 1867
Parties
1st Plaintiff: NG, ROSE KAI CHING; 2nd Plaintiff: LU, LUCY KAI YEE; 3rd Plaintiff: LIANG, CHRISTOPHER YUM CHUNG; 1st Defendant (executor and Trustee): LIANG YUM SHING HOWARD; 2nd Defendant (mother): LIANG LO CHING YUNG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 July 2023
Case Number
HCMP2013/2018
Procedural Posture
Probate and Administration; Trust; Removal of Executor (order 85 Proceeding Continued as Writ) / Judgment After Trial
Outcome
Judgment in part for plaintiffs: executor removed and independent professional administrator to be appointed; plaintiffs entitled to further account and inquiries; adjournment and VCF summonses dismissed with costs against defendant personally
Legal Topics
Removal of Executor, Self Dealing Rule, Fair Dealing Rule, Estoppel, Account and Inquiries, Family Arrangement; BVI Holding Company, Declarations of Trust
Source Language
EN
Probate Trusts and Trustees Fiduciary Duties Equity Civil Procedure Removal of Executor Self Dealing Rule Fair Dealing Rule +4 more

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Parties

NG, ROSE KAI CHING

1st Plaintiff

LU, LUCY KAI YEE

2nd Plaintiff

LIANG, CHRISTOPHER YUM CHUNG

3rd Plaintiff

LIANG YUM SHING HOWARD

1st Defendant (executor and Trustee)

LIANG LO CHING YUNG

2nd Defendant (mother)

Procedural Posture

Probate and Administration; Trust; Removal of Executor (order 85 Proceeding Continued as Writ) / Judgment After Trial

Legal Issues

  1. 1 Whether administration of the estate (residuary distribution) had been completed and if so when
  2. 2 Whether the beneficiaries knew of, consented to and/or acquiesced in the alleged Plan to form a holding company and transfer assets to it
  3. 3 Whether any such agreement was valid or binding on the parties or the estate

Ratio Decidendi

Court found plaintiffs did agree to the narrow corporate structure that a BVI holding company (Mega Best) be formed with beneficiaries allotted shares in their will proportions and that Mega Best held the legal title as trustee; however there was no informed consent to abandon rights under the Will or to complete administration; Howard failed to make full and frank disclosure, breached fiduciary duties (fair-dealing and other duties), did not complete administration, and therefore was not entitled to estoppel or to have transactions upheld as conclusive; consequence: Howard removed as executor and trustee and an independent administrator to be appointed, with further directions as to...

Court Disposition

Judgment in part for plaintiffs: executor removed and independent professional administrator to be appointed; plaintiffs entitled to further account and inquiries; adjournment and VCF summonses dismissed with costs against defendant personally

Orders

  • Adjournment summons and VCF summons dismissed
  • Costs of both summonses to be paid by the 1st Defendant personally on indemnity basis, to be taxed if not agreed, with certificate for two counsel