HANG HEUNG CAKE SHOP COMPANY LTD v. TSOI CHIK SANG LAWRENCE AND ANOTHER

HANG HEUNG CAKE SHOP COMPANY LTD v. TSOI CHIK SANG LAWRENCE AND ANOTHER

The 5 May 2025 letter amounted to a valid acceptance of the Sanctioned Offer under Order 22 rule 12 because acceptance occurs on service of notice; the procedural filing requirement in Order 22 rule 16 does not negate that acceptance; alleged misrepresentation or undue influence by a third party did not invalidate...

Source-derived case information.

Citation
[2025] HKCFI 2634
Parties
Plaintiff (consolidated Action): Hang Heung Cake Shop Company Limited; 1st Defendant; 2nd Defendant; Plaintiff in HCA 2061/2018: Tsoi Chik Sang Lawrence; Defendant in HCA 2061/2018: Tardi Holdings Limited (Tardi)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 June 2025
Case Number
HCA1327/2013
Procedural Posture
Civil Consolidated Actions Concerning Settlement, Consolidation Summonses and Related Costs / Costs Hearing Following Dismissal of Consolidation Summonses and Vacation of Trial Dates
Outcome
Court upheld the settlement as valid and dismissed the Summonses; costs ordered against Tsoi on indemnity basis.
Legal Topics
Sanctioned Offer (order 22), Acceptance of Settlement, Order 22 Rule 12 and Rule 16, Order 32 Rule 5, Costs Following the Event, Indemnity Costs, Consolidation of Actions, Authority of Company to Litigate, Champerty, Misrepresentation and Undue Influence
Source Language
en
Civil Procedure Company Law Contract Law Costs Law Equity and Trusts Intellectual Property Sanctioned Offer (order 22) Acceptance of Settlement +8 more

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Parties

Hang Heung Cake Shop Company Limited

Plaintiff (consolidated Action)

Tsoi Chik Sang Lawrence

1st Defendant; 2nd Defendant; Plaintiff in HCA 2061/2018

Tardi Holdings Limited (Tardi)

Defendant in HCA 2061/2018

Procedural Posture

Civil Consolidated Actions Concerning Settlement, Consolidation Summonses and Related Costs / Costs Hearing Following Dismissal of Consolidation Summonses and Vacation of Trial Dates

Legal Issues

  1. 1 Whether the 5 May 2025 communication amounted to a valid acceptance of the Sanctioned Offer under Order 22
  2. 2 Whether any alleged misrepresentation or undue influence by a third party invalidated the acceptance
  3. 3 Whether HHCS had authority to make the Sanctioned Offer and to conduct the Consolidated Action

Ratio Decidendi

The 5 May 2025 letter amounted to a valid acceptance of the Sanctioned Offer under Order 22 rule 12 because acceptance occurs on service of notice; the procedural filing requirement in Order 22 rule 16 does not negate that acceptance; alleged misrepresentation or undue influence by a third party did not invalidate the acceptance as there was no agency or knowledge by HHCS; challenges to HHCS's authority and to champerty were without merit; accordingly the settlement was effective, the consolidation summonses were dismissed and costs were awarded to the respondents on an indemnity basis.

Court Disposition

Court upheld the settlement as valid and dismissed the Summonses; costs ordered against Tsoi on indemnity basis.

Orders

  • Tsoi Chik Sang Lawrence as 1st Defendant and as 2nd Defendant shall jointly and severally pay Hang Heung Cake Shop Company Limited costs of the Summons in the Consolidated Action summarily assessed at HK$190,000 payable forthwith
  • Tsoi Chik Sang Lawrence shall pay Tardi Holdings Limited costs of the Summons in HCA 2061 summarily assessed at HK$190,000 payable forthwith