ANTHONY ERIC RYAN HOTUNG v. HOTUNG, MICHAEL ERIC A.B. AND OTHERS

ANTHONY ERIC RYAN HOTUNG v. HOTUNG, MICHAEL ERIC A.B. AND OTHERS

The trustee breached the duty to inform the plaintiff of his beneficial interests on reaching majority but the plaintiff failed to prove any loss or causation arising from that breach and failed to adduce sufficient admissible evidence to substantiate the alleged dubious payments or an undervalue sale; accordingly only nominal damages (HK$1) were awarded, and new evidence and proposed pleadings amendments were refused as prejudicial and hopeless.

Citation
[2021] HKCFI 601
Parties
Plaintiff: Anthony Eric Ryan Hotung; 1st Defendant: HOTUNG, MICHAEL ERIC A.B.; 1st Defendant (executor): MAK SHUN MING (Executor of the Estate of Ho Yuen Ki Winnie, also known as Ho Yuen Ki); 2nd Defendant: Eric Edward Hotung; 3rd Defendant: Hotung Estates Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 March 2021
Case Number
HCA1216/2006
Procedural Posture
Breach of Trust; Trust Accounting; Removal of Trustee; Equitable Compensation / Trial Judgment (court of First Instance, Judgment Delivered)
Outcome
Claim dismissed on substantive pleaded causes except that plaintiff awarded nominal damages of HK$1 for failure to inform; applications for new evidence and amendments refused; costs ordered to 1st Defendant nisi.
Legal Topics
Breach of Trust, Failure to Inform Beneficiary on Majority, Sale at Undervalue, Disclosure and Accountability of Trustees, Admission of New Evidence, Amendment of Pleadings, Nominal Damages, Costs
Source Language
EN
Equity Trusts Company Law Civil Procedure Breach of Trust Failure to Inform Beneficiary on Majority Sale at Undervalue Disclosure and Accountability of Trustees +4 more

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Parties

Anthony Eric Ryan Hotung

Plaintiff

HOTUNG, MICHAEL ERIC A.B.

1st Defendant

MAK SHUN MING (Executor of the Estate of Ho Yuen Ki Winnie, also known as Ho Yuen Ki)

1st Defendant (executor)

Eric Edward Hotung

2nd Defendant

Hotung Estates Limited

3rd Defendant

Procedural Posture

Breach of Trust; Trust Accounting; Removal of Trustee; Equitable Compensation / Trial Judgment (court of First Instance, Judgment Delivered)

Legal Issues

  1. 1 Whether the trustee breached duties by failing to inform beneficiary on attaining majority
  2. 2 Whether the trustee must account for alleged dubious payments and advances in HICL and whether claimant proved impropriety
  3. 3 Whether the sale of land by HICL to Hotung Estates in 1998 was at undervalue and claimant proved loss and quantum

Ratio Decidendi

The trustee breached the duty to inform the plaintiff of his beneficial interests on reaching majority but the plaintiff failed to prove any loss or causation arising from that breach and failed to adduce sufficient admissible evidence to substantiate the alleged dubious payments or an undervalue sale; accordingly only nominal damages (HK$1) were awarded, and new evidence and proposed pleadings amendments were refused as prejudicial and hopeless.

Court Disposition

Claim dismissed on substantive pleaded causes except that plaintiff awarded nominal damages of HK$1 for failure to inform; applications for new evidence and amendments refused; costs ordered to 1st Defendant nisi.

Orders

  • Award nominal damages to Plaintiff in the sum of HK$1
  • Refuse other relief including declaratory relief and account and equitable compensation claimed