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

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

Yam J's Order and the ONC Letter must be construed to treat fees charged by DTT staff in this administration as part of the Administrators' costs (not separate disbursements) and therefore subject to the statutory cap in s60 PAO; Master So's tripartite settlement quantified and finally settled the Administrators' party-and-party costs and their own costs so Administrators must reimburse the Estate the excess they have received beyond the amounts quantified in that settlement; net sale proceeds of the Property are HK$44,326,546.27 for s60 PAO; specific reimbursement amounts are ordered accordingly.

Citation
[2024] HKCFI 924
Parties
Plaintiff (joint and Several Administrator): Darach E. Haughey; Plaintiff (joint and Several Administrator): Lai Kar Yan (Derek); 1st Defendant (in 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 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
28 March 2024
Case Number
HCMP1593/2014
Procedural Posture
Estate Administration / Directions Summons Under Order 85 RHC / Directions Hearing — Decision (judgment on Summons)
Outcome
Court answered the four questions in the summons: DTT costs are part of the Administrators' costs and subject to statutory cap; gross value of Property for s60 PAO is HK$44,326,546.27; Administrators must reimburse the Estate for over-recovered costs and for certain New Evidence costs; costs of the summons addressed...
Legal Topics
Administrator Remuneration, Statutory Cap (s60 Pao), Indemnity From Estate, Taxation and Settlement of Costs, Construction of Court Orders
Source Language
EN
Probate and Administration Civil Procedure Costs Trusts and Estates Administrator Remuneration Statutory Cap (s60 Pao) Indemnity From Estate Taxation and Settlement of Costs +1 more

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Parties

Darach E. Haughey

Plaintiff (joint and Several Administrator)

Lai Kar Yan (Derek)

Plaintiff (joint and Several Administrator)

Lam Mui

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

Chiu Hing Sheung

5th Defendant

Chiu Shuet Fei

6th Defendant

Procedural Posture

Estate Administration / Directions Summons Under Order 85 RHC / Directions Hearing — Decision (judgment on Summons)

Legal Issues

  1. 1 Whether fees of Deloitte Touche Tohmatsu staff (DTT Costs) are part of the Administrators' costs under Yam J's Order
  2. 2 Whether net sale proceeds of No 4 Derby Road should be adopted as gross value of the Estate for s60 PAO
  3. 3 Whether Administrators over-recovered costs in respect of the Appeal and Stay Application and must reimburse the Estate

Ratio Decidendi

Yam J's Order and the ONC Letter must be construed to treat fees charged by DTT staff in this administration as part of the Administrators' costs (not separate disbursements) and therefore subject to the statutory cap in s60 PAO; Master So's tripartite settlement quantified and finally settled the Administrators' party-and-party costs and their own costs so Administrators must reimburse the Estate the excess they have received beyond the amounts quantified in that settlement; net sale proceeds of the Property are HK$44,326,546.27 for s60 PAO; specific reimbursement amounts are ordered accordingly.

Court Disposition

Court answered the four questions in the summons: DTT costs are part of the Administrators' costs and subject to statutory cap; gross value of Property for s60 PAO is HK$44,326,546.27; Administrators must reimburse the Estate for over-recovered costs and for certain New Evidence costs; costs of the summons addressed...

Orders

  • DTT staff fees to be regarded as part of the Administrators' costs and therefore subject to the statutory cap in s60 PAO; any remuneration received by the Administrators above the statutory cap to be repaid to the Estate
  • The gross value of No 4 Derby Road for the purposes of s60(2)(b) PAO is HK$44,326,546.27