DARACH E. HAUGHEY AND ANOTHER v. LAM MUI AND OTHERS

DARACH E. HAUGHEY AND ANOTHER v. LAM MUI AND OTHERS

The Administrators' defences (concern about recoverability, awaiting appeal, substantial compliance, entitlement to recover costs) were unsustainable; the court concluded the Administrators unreasonably delayed compliance with its 8 June 2017 order, administration lacked direction, and therefore the Administrators...

Source-derived case information.

Citation
[2021] HKCFI 1843
Parties
Plaintiff (joint and Several Administrator of the Estate): Darach E. Haughey; Plaintiff (joint and Several Administrator of the Estate): Lai Kar Yan (Derek); 1st Defendant (in Her Own Capacity and as Administratrix of Chiu Shuet Lan): Lam Mui; 2nd Defendant (as Administratrix of Chiu Sinn Kei / Sole Beneficiary): Chiu Hiu Hung; 3rd Defendant: Chiu Sin Kuen; 4th Defendant (in His Own Capacity and as Administrator of Chiu Shuet Lan): Chiu Anthony Sin Ka; 5th Defendant: Chiu Hing Sheung; 6th Defendant: Chiu Shuet Fei
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 June 2021
Case Number
HCMP1593/2014
Procedural Posture
Miscellaneous Proceedings Concerning Estate Administration and Enforcement of Court Order / Chamber Hearing for Compliance With Prior Order and Costs (application to Compel Distribution and for Costs)
Outcome
Summons granted in substance with directions to complete administration and distribution; costs of the Amended Summons to be personally borne by the Administrators on indemnity basis and summarily assessed at HKD 650,000; Administrators restrained from recovering remuneration and costs from the Estate in respect of...
Legal Topics
Administration of Estate, Compliance With Court Orders, Personal Representatives' Costs, Indemnity Costs, Timing of Performance Under Court Order, Directions for Final Distribution
Source Language
en
Probate and Administration Civil Procedure Costs and Taxation Trusts and Fiduciary Duties Administration of Estate Compliance With Court Orders Personal Representatives' Costs Indemnity Costs +2 more

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Parties

Darach E. Haughey

Plaintiff (joint and Several Administrator of the Estate)

Lai Kar Yan (Derek)

Plaintiff (joint and Several Administrator of the Estate)

Lam Mui

1st Defendant (in Her Own Capacity and as Administratrix of Chiu Shuet Lan)

Chiu Hiu Hung

2nd Defendant (as Administratrix of Chiu Sinn Kei / Sole Beneficiary)

Chiu Sin Kuen

3rd Defendant

Chiu Anthony Sin Ka

4th Defendant (in His Own Capacity and as Administrator of Chiu Shuet Lan)

Chiu Hing Sheung

5th Defendant

Chiu Shuet Fei

6th Defendant

Procedural Posture

Miscellaneous Proceedings Concerning Estate Administration and Enforcement of Court Order / Chamber Hearing for Compliance With Prior Order and Costs (application to Compel Distribution and for Costs)

Legal Issues

  1. 1 Whether the Administrators unreasonably failed to comply with the Court's 8 June 2017 order and should be compelled to distribute the Estate
  2. 2 Whether the Administrators should personally bear the costs of the Amended Summons on an indemnity basis for their delay
  3. 3 Whether and how distributions should be made pending resolution of outstanding fees, costs and appeals

Ratio Decidendi

The Administrators' defences (concern about recoverability, awaiting appeal, substantial compliance, entitlement to recover costs) were unsustainable; the court concluded the Administrators unreasonably delayed compliance with its 8 June 2017 order, administration lacked direction, and therefore the Administrators must comply with the Annex directions and personally bear the applicant's costs of the Amended Summons on an indemnity basis summarily assessed at HKD 650,000; certain protective mechanisms for distribution (stakeholding HKD 500,000, negotiation or taxation of appeal costs, itemised bills and final accounts) were ordered to enable final distribution by a set timetable.

Court Disposition

Summons granted in substance with directions to complete administration and distribution; costs of the Amended Summons to be personally borne by the Administrators on indemnity basis and summarily assessed at HKD 650,000; Administrators restrained from recovering remuneration and costs from the Estate in respect of...

Orders

  • Administrators and SFKS to verify and, if they have received costs in respect of the relief from sanction summons (21 Dec 2020) and taxation proceedings (per Master Phoebe Man's order dated 23 Apr 2021), pay such costs back to the Estate forthwith
  • Within 7 days, Administrators shall pay to Chan, Lau & Wai (CLW) the money held by the Administrators for the Estate