CHAO CHIUNG YO, the executor of the Estate of Madam LEUNG HING SHAN, deceased v. SAM YU LIK ERIC

CHAO CHIUNG YO, the executor of the Estate of Madam LEUNG HING SHAN, deceased v. SAM YU LIK ERIC

The Vendor failed to show good title and did not satisfactorily answer material requisitions (notably the Vendor lacked effective power to sell the parking space absent rectification of the will/probate by completion date and had not produced a certified carpark layout plan); that failure amounted to repudiatory breach which the Purchaser validly accepted; clause 7 was not a penalty and the Purchaser was entitled to liquidated damages of HKD 2,100,000; the Purchaser is entitled to indemnity for any estate agent commission if it becomes payable; equitable lien is subsumed by the security paid into court.

Citation
[2024] HKCFI 1377
Parties
Vendor; Executor; Plaintiff (hcmp12) and Defendant (hcmp15): CHAO CHIUNG YO; Purchaser; Defendant (hcmp12) and Plaintiff (hcmp15): SAM YU LIK ERIC; Deceased; Testatrix; Estate Owner: LEUNG HING SHAN
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 June 2024
Case Number
HCMP12/2023
Procedural Posture
Originating Summonses HCMP 12/2023 & HCMP 15/2023 (sale of Land/probate) / Judgment (final)
Outcome
Judgment for the Purchaser: declarations that Vendor had not shown good title and was in repudiatory breach; Purchaser accepted repudiation; liquidated damages and ancillary relief awarded.
Legal Topics
Repudiatory Breach, Liquidated Damages Vs Penalty, Title Requisitions, Probate Rectification, Equitable Lien, Estate Agent Commission, Land Registration
Source Language
EN
Conveyancing Probate and Administration Contract Law Property Law Equity Repudiatory Breach Liquidated Damages Vs Penalty Title Requisitions +4 more

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Parties

CHAO CHIUNG YO

Vendor; Executor; Plaintiff (hcmp12) and Defendant (hcmp15)

SAM YU LIK ERIC

Purchaser; Defendant (hcmp12) and Plaintiff (hcmp15)

LEUNG HING SHAN

Deceased; Testatrix; Estate Owner

Procedural Posture

Originating Summonses HCMP 12/2023 & HCMP 15/2023 (sale of Land/probate) / Judgment (final)

Legal Issues

  1. 1 Whether the Vendor showed good title to the Property including the parking space
  2. 2 Whether the Vendor repudiated the Provisional Agreement by failing to answer requisitions and complete
  3. 3 Whether clause 7 (payment by Vendor of amount equivalent to initial deposit) is an enforceable liquidated damages clause or a penalty

Ratio Decidendi

The Vendor failed to show good title and did not satisfactorily answer material requisitions (notably the Vendor lacked effective power to sell the parking space absent rectification of the will/probate by completion date and had not produced a certified carpark layout plan); that failure amounted to repudiatory breach which the Purchaser validly accepted; clause 7 was not a penalty and the Purchaser was entitled to liquidated damages of HKD 2,100,000; the Purchaser is entitled to indemnity for any estate agent commission if it becomes payable; equitable lien is subsumed by the security paid into court.

Court Disposition

Judgment for the Purchaser: declarations that Vendor had not shown good title and was in repudiatory breach; Purchaser accepted repudiation; liquidated damages and ancillary relief awarded.

Orders

  • Declaration that good title to the Property had not been shown by the Vendor
  • Declaration that the Vendor was in repudiatory breach of the Agreement by reason of his failure to show good title and/or to satisfactorily answer requisitions