WONG TAK MAN STEPHEN v. CHANG CHING WAI AND ANOTHER

WONG TAK MAN STEPHEN v. CHANG CHING WAI AND ANOTHER

Section 34 of the Building Management Ordinance, as amended to include 'both jointly and severally', creates joint and several liability on owners for the corporation's debts and liabilities such that each owner may be pursued for the whole amount; the qualification 'according to their respective shares' governs contribution among co-owners and does not limit creditors' recourse; the underlying court judgment merging the contractor's claim cannot be reopened in these proceedings.

Citation
WONG TAK MAN STEPHEN v. CHANG CHING WAI AND ANOTHER
Parties
Plaintiffs: WONG TAK MAN STEPHEN and OSMAN MOHAMMED ARAB (Joint and Several Liquidators of the Incorporated Owners of Nos 6, 6A, 6B, 8, 10, 12, 14 and 16 Wing Kwong Street); 1st Defendant: CHANG CHING WAI; 2nd Defendant: CHANG DIN WAH
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 October 2017
Case Number
HCMP2430/2016
Procedural Posture
Miscellaneous Proceedings (court of First Instance) / Judgment
Outcome
Declaration and order granted for the Plaintiffs in terms of the Originating Summons; costs awarded to Plaintiffs, with conditions on certificate for counsel and taxation
Legal Topics
Section 34 BMO Interpretation, Joint and Several Liability of Co Owners, Contribution Between Co Owners, Enforcement Under Section 17(1)(b) BMO
Source Language
EN
Building Management Insolvency Statutory Interpretation Property Law Section 34 BMO Interpretation Joint and Several Liability of Co Owners Contribution Between Co Owners Enforcement Under Section 17(1)(b) BMO

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Parties

WONG TAK MAN STEPHEN and OSMAN MOHAMMED ARAB (Joint and Several Liquidators of the Incorporated Owners of Nos 6, 6A, 6B, 8, 10, 12, 14 and 16 Wing Kwong Street)

Plaintiffs

CHANG CHING WAI

1st Defendant

CHANG DIN WAH

2nd Defendant

Procedural Posture

Miscellaneous Proceedings (court of First Instance) / Judgment

Legal Issues

  1. 1 Whether s34 of the Building Management Ordinance creates joint and several liability on each owner for the corporation's debts or limits liability to owners' respective shares
  2. 2 Whether the phrase 'according to their respective shares' limits liability vis-à-vis creditors or governs contribution inter se
  3. 3 Whether the defendants may reopen quantum of the judgment debt that founded the winding up petition

Ratio Decidendi

Section 34 of the Building Management Ordinance, as amended to include 'both jointly and severally', creates joint and several liability on owners for the corporation's debts and liabilities such that each owner may be pursued for the whole amount; the qualification 'according to their respective shares' governs contribution among co-owners and does not limit creditors' recourse; the underlying court judgment merging the contractor's claim cannot be reopened in these proceedings.

Court Disposition

Declaration and order granted for the Plaintiffs in terms of the Originating Summons; costs awarded to Plaintiffs, with conditions on certificate for counsel and taxation

Orders

  • Declaration that the 1st and 2nd Defendants are jointly and severally liable for all debts and liabilities of the Incorporated Owners pursuant to BMO s34
  • Order that the 1st and 2nd Defendants pay to the Plaintiffs the sum of HK$3,649,932.77