WONG YIN v. UNION BANK OF HONG KONG LTD.

WONG YIN v. UNION BANK OF HONG KONG LTD.

The legal charge's all-moneys clause, read with its covenants, covered Mr Wong's liability as guarantor; Jing Guang defaulted and the guarantor liability therefore existed; accordingly the Bank was entitled to demand repayment for redemption and the defendant's claim that the Bank clogged the equity of redemption was misconceived and failed.

Citation
WONG YIN v. UNION BANK OF HONG KONG LTD.
Parties
Plaintiff and Counterclaimant: Industrial and Commercial Bank of China (Asia) Ltd (formerly Union Bank of Hong Kong Limited); Defendant and Plaintiff by Counterclaim: Wong Yin
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 October 2000
Case Number
HCA7578/1999
Procedural Posture
Mortgage Action / Counterclaim for Sums and Possession / Judgment (court of First Instance)
Outcome
Judgment for the plaintiff and defendant by counterclaim (Industrial and Commercial Bank of China (Asia) Ltd).
Legal Topics
All Moneys Clause, Clog on Equity of Redemption, Guarantee Liability, Redemption, Remedies on Repayment
Source Language
EN
Mortgage Law Equity Contract Banking Law Property Law All Moneys Clause Clog on Equity of Redemption Guarantee Liability +2 more

Case Brief

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Parties

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

Plaintiff and Counterclaimant

Wong Yin

Defendant and Plaintiff by Counterclaim

Procedural Posture

Mortgage Action / Counterclaim for Sums and Possession / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the legal charge's all-moneys clause secured guarantor liabilities
  2. 2 Whether Jing Guang breached the loan agreement and triggered guarantor liability
  3. 3 Whether the Bank's conduct amounted to a clog or fetter on the equity of redemption

Ratio Decidendi

The legal charge's all-moneys clause, read with its covenants, covered Mr Wong's liability as guarantor; Jing Guang defaulted and the guarantor liability therefore existed; accordingly the Bank was entitled to demand repayment for redemption and the defendant's claim that the Bank clogged the equity of redemption was misconceived and failed.

Court Disposition

Judgment for the plaintiff and defendant by counterclaim (Industrial and Commercial Bank of China (Asia) Ltd).

Orders

  • Payment of $10,364,062.76 with further daily interest of HK$2,933.99 at a rate of 2.75% over HK$ Prime (12.15% currently) accruing from 12 October 2000 until payment.
  • Payment of $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 until payment.