LAU KOON FOO v. CHAMPION CONCORD LTD AND ANOTHER

LAU KOON FOO v. CHAMPION CONCORD LTD AND ANOTHER

Clause 16 was not triggered because, on its plain wording, its operation required an explicit adverse decision by the DLO not to give consent and a consequent contest by Champion Concord on or before the Long Stop Date; those conditions were not satisfied, so Clause 15 operated and the sale and purchase was automatically cancelled as at the Long Stop Date.

Citation
LAU KOON FOO v. CHAMPION CONCORD LTD AND ANOTHER
Parties
1st Plaintiff (hccl 1/2010); 1st Defendant (hccl 5/2010): Champion Concord Ltd.; 2nd Plaintiff (hccl 1/2010); 2nd Defendant (hccl 5/2010): Craigside Investments Ltd.; 1st Defendant (hccl 1/2010); Plaintiff (hccl 5/2010): Lau Koon Foo; 2nd Defendant (hccl 1/2010): The District Lands Officer, Sai Kung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 June 2010
Case Number
HCCL5/2010
Procedural Posture
Commercial Action (high Court, Court of First Instance) / Cross Order 86 Interlocutory Applications Decided on Construction of Settlement Agreement (summary Disposal)
Outcome
HCCL 1/2010: Plaintiffs' Order 86 dismissed and action struck out; costs to 1st defendant. HCCL 5/2010: Orders granted in favour of Mr Lau in substance as per draft Minute with assessment of damages/mesne profits by a Master, return of deposit subject to set-off, and costs to plaintiff to be taxed if not agreed.
Legal Topics
Specific Performance, Contract Construction, Settlement Agreement Arising From Mediation, Automatic Cancellation Clause, Damages/mesne Profits, Vendor Obligations and Trust Relationship
Source Language
EN
Contract Property Equity Civil Procedure Specific Performance Contract Construction Settlement Agreement Arising From Mediation Automatic Cancellation Clause +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Champion Concord Ltd.

1st Plaintiff (hccl 1/2010); 1st Defendant (hccl 5/2010)

Craigside Investments Ltd.

2nd Plaintiff (hccl 1/2010); 2nd Defendant (hccl 5/2010)

Lau Koon Foo

1st Defendant (hccl 1/2010); Plaintiff (hccl 5/2010)

The District Lands Officer, Sai Kung

2nd Defendant (hccl 1/2010)

Procedural Posture

Commercial Action (high Court, Court of First Instance) / Cross Order 86 Interlocutory Applications Decided on Construction of Settlement Agreement (summary Disposal)

Legal Issues

  1. 1 Whether Clause 16 of the Settlement Agreement was triggered thereby extending the Long Stop Date by 12 months
  2. 2 Whether Clause 15 operated to cause automatic cancellation of the sale and purchase by the Long Stop Date
  3. 3 Whether purchasers were entitled to specific performance or declaratory relief given the Settlement Agreement's terms

Ratio Decidendi

Clause 16 was not triggered because, on its plain wording, its operation required an explicit adverse decision by the DLO not to give consent and a consequent contest by Champion Concord on or before the Long Stop Date; those conditions were not satisfied, so Clause 15 operated and the sale and purchase was automatically cancelled as at the Long Stop Date.

Court Disposition

HCCL 1/2010: Plaintiffs' Order 86 dismissed and action struck out; costs to 1st defendant. HCCL 5/2010: Orders granted in favour of Mr Lau in substance as per draft Minute with assessment of damages/mesne profits by a Master, return of deposit subject to set-off, and costs to plaintiff to be taxed if not agreed.

Orders

  • HCCL 1 of 2010: Order 86 summons dated 9 February 2010 dismissed
  • HCCL 1 of 2010: The action is struck out