UNION BANK OF HONG KONG LTD. v. WONG YIN

UNION BANK OF HONG KONG LTD. v. WONG YIN

The court found Jing Guang defaulted on its loan (repayment due 29 April 1996) and guarantors thereby became liable; the legal charge's all-moneys clauses plainly secured the guarantor liability; accordingly the Bank was entitled to demand payment of all sums secured for redemption and Mr Wong's claim that the Bank clogged his equity of redemption was misconceived; judgment entered for the Bank for the sums claimed.

Citation
UNION BANK OF HONG KONG LTD. v. WONG YIN
Parties
Plaintiff and Defendant by Counterclaim: Industrial and Commercial Bank of China (Asia) Ltd (formerly Union Bank of Hong Kong Ltd); Defendant and Plaintiff by Counterclaim: Wong Yin
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 October 2000
Case Number
HCMP4728/1998
Procedural Posture
Mortgage Action and Counterclaim (originating Summons and Writ) / Judgment After Trial at Court of First Instance (hearing 9 11 Oct 2000; Judgment 18 Oct 2000)
Outcome
Judgment for the plaintiff (Industrial and Commercial Bank of China (Asia) Ltd) and defendant by counterclaim; defendant's (Mr Wong) claims dismissed.
Legal Topics
All Moneys Clause, Equity of Redemption, Clog on the Equity, Liability of Guarantor, Redemption, Costs
Source Language
EN
Property Law Mortgage Guarantee Equity Contract Civil Procedure All Moneys Clause Equity of Redemption +4 more

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Parties

Industrial and Commercial Bank of China (Asia) Ltd (formerly Union Bank of Hong Kong Ltd)

Plaintiff and Defendant by Counterclaim

Wong Yin

Defendant and Plaintiff by Counterclaim

Procedural Posture

Mortgage Action and Counterclaim (originating Summons and Writ) / Judgment After Trial at Court of First Instance (hearing 9 11 Oct 2000; Judgment 18 Oct 2000)

Legal Issues

  1. 1 Whether Jing Guang breached the loan agreement and thereby triggered guarantor liability
  2. 2 Whether the legal charge secured the guarantor liability as well as the mortgagor's personal liabilities
  3. 3 Whether the Bank's insistence on repayment of the Jing Guang debt as condition for redemption amounted to a clog on the equity of redemption

Ratio Decidendi

The court found Jing Guang defaulted on its loan (repayment due 29 April 1996) and guarantors thereby became liable; the legal charge's all-moneys clauses plainly secured the guarantor liability; accordingly the Bank was entitled to demand payment of all sums secured for redemption and Mr Wong's claim that the Bank clogged his equity of redemption was misconceived; judgment entered for the Bank for the sums claimed.

Court Disposition

Judgment for the plaintiff (Industrial and Commercial Bank of China (Asia) Ltd) and defendant by counterclaim; defendant's (Mr Wong) claims dismissed.

Orders

  • Payment of HK$10,364,062.76 with further daily interest of HK$2,933.99 at a rate of 2.75% over HK$ Prime (12.15% at time) accruing from 12 October 2000 to date of payment
  • Payment of HK$6,998,987.78 with further daily interest of HK$3,986.11 at a rate of 11.25% over HK$ Prime or one-month HIBOR accruing from 12 October 2000 to date of payment