AKAI HOLDINGS LTD (IN LIQUIDATION) v. THANAKHARN KASIKORN THAI CHAMKAT (MAHACHON) also known as KASIKORNBANK PUBLIC CO LTD

AKAI HOLDINGS LTD (IN LIQUIDATION) v. THANAKHARN KASIKORN THAI CHAMKAT (MAHACHON) also known as KASIKORNBANK PUBLIC CO LTD

The Court held Mr Ting did not have authority to bind Akai to the Switch Transaction and, accordingly, the Bank had no proprietary right in the pledged shares; Akai was entitled to common law damages for conversion measured by the proceeds the Bank realised on sale (US$22,541,332 awarded) and Akai's equitable claim...

Source-derived case information.

Citation
AKAI HOLDINGS LTD (IN LIQUIDATION) v. THANAKHARN KASIKORN THAI CHAMKAT (MAHACHON) also known as KASIKORNBANK PUBLIC CO LTD
Parties
Appellant (facv 16/2009) and Respondent (facv 9/2010): Thanakharn Kasikorn Thai Chamkat (Mahachon) (also known as Kasikornbank Public Company Limited); Respondent (facv 16/2009) and Appellant (facv 9/2010): Akai Holdings Limited (in liquidation)
Court
Court of Final Appeal
Jurisdiction
Hong Kong
Judgment Date
8 November 2010
Case Number
FACV9/2010
Procedural Posture
Final Appeal (civil) / Judgment of the Court of Final Appeal Delivered 8 November 2010
Outcome
The Bank's appeal and Akai's cross-appeal were dismissed; the Court upheld that Mr Ting lacked authority and limited Akai's recovery to the common law measure based on sale proceeds.
Legal Topics
Apparent Authority, Knowing Receipt, Fiduciary Duty, Conversion, Equitable Compensation, Remedies and Measure of Damages
Source Language
en
Company Law Agency Equity and Trusts Commercial Law Banking Law Apparent Authority Knowing Receipt Fiduciary Duty +3 more

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Parties

Thanakharn Kasikorn Thai Chamkat (Mahachon) (also known as Kasikornbank Public Company Limited)

Appellant (facv 16/2009) and Respondent (facv 9/2010)

Akai Holdings Limited (in liquidation)

Respondent (facv 16/2009) and Appellant (facv 9/2010)

Procedural Posture

Final Appeal (civil) / Judgment of the Court of Final Appeal Delivered 8 November 2010

Legal Issues

  1. 1 Whether Mr James Ting had apparent authority to bind Akai to the Switch Transaction
  2. 2 If he did not, whether the Bank is liable only to common law damages or also to equitable compensation for knowing receipt

Ratio Decidendi

The Court held Mr Ting did not have authority to bind Akai to the Switch Transaction and, accordingly, the Bank had no proprietary right in the pledged shares; Akai was entitled to common law damages for conversion measured by the proceeds the Bank realised on sale (US$22,541,332 awarded) and Akai's equitable claim for knowing receipt did not yield a higher award; both the Bank's appeal and Akai's cross-appeal were dismissed, with interest to run from the dates of sale.

Court Disposition

The Bank's appeal and Akai's cross-appeal were dismissed; the Court upheld that Mr Ting lacked authority and limited Akai's recovery to the common law measure based on sale proceeds.

Orders

  • Judgment for Akai in the sum of US$22,541,332 (as per Court of Appeal award) is affirmed
  • Compound interest awarded is varied so that interest runs from the dates on which the Bank sold the Shares