LAND ZONE LTD v. LAND ZONE LTD AND ANOTHER

LAND ZONE LTD v. LAND ZONE LTD AND ANOTHER

The court found on the balance of probabilities that the 1997 Tenancy Agreement and the alleged Licence were sham/not proved, that the Assignment to LZL was valid and registered, and that LZL was a bona fide purchaser for value without notice; accordingly LZL holds title and is entitled to possession and injunctive relief while SGL and Madam Chen were trespassers; counterclaim dismissed and most monetary claims rejected for lack of evidence.

Citation
LAND ZONE LTD v. LAND ZONE LTD AND ANOTHER
Parties
Plaintiff (original Action): To Ho Sum, Eddy; 1st Defendant (original Action); Plaintiff (counterclaim): Land Zone Limited; 2nd Defendant (original Action): Chow Hon Wah, Karry; 1st Defendant (counterclaim): To Ho Sum, Eddy; 2nd Defendant (counterclaim): Sunny Group Limited; 3rd Defendant (counterclaim): Chen Kam Yee, Peggy
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 May 2017
Case Number
HCA10/2008
Procedural Posture
Civil Property Dispute (land, Trust, Trespass) / Judgment (court of First Instance)
Outcome
Claim by LZL for possession and injunction allowed in part; counterclaim by SGL and Madam Chen dismissed; monetary trespass claims largely dismissed for lack of valuation evidence.
Legal Topics
Assignment of Land, Tenancy Agreement, Oral Licence, Severance of Joint Tenancy, Bona Fide Purchaser Without Notice, Mensre Profits, Injunction, Admissibility of Out of Court Affirmations
Source Language
EN
Property Law Trusts Land Registration Partnership Law Contract Law Tort (trespass) Evidence Law Assignment of Land +7 more

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Parties

To Ho Sum, Eddy

Plaintiff (original Action)

Land Zone Limited

1st Defendant (original Action); Plaintiff (counterclaim)

Chow Hon Wah, Karry

2nd Defendant (original Action)

To Ho Sum, Eddy

1st Defendant (counterclaim)

Sunny Group Limited

2nd Defendant (counterclaim)

Chen Kam Yee, Peggy

3rd Defendant (counterclaim)

Procedural Posture

Civil Property Dispute (land, Trust, Trespass) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the 1997 Tenancy Agreement created a valid lease or equitable interest
  2. 2 Whether the Assignment to LZL was valid and transferred beneficial ownership
  3. 3 Whether an oral Licence was granted by successors of Mok binding on LZL

Ratio Decidendi

The court found on the balance of probabilities that the 1997 Tenancy Agreement and the alleged Licence were sham/not proved, that the Assignment to LZL was valid and registered, and that LZL was a bona fide purchaser for value without notice; accordingly LZL holds title and is entitled to possession and injunctive relief while SGL and Madam Chen were trespassers; counterclaim dismissed and most monetary claims rejected for lack of evidence.

Court Disposition

Claim by LZL for possession and injunction allowed in part; counterclaim by SGL and Madam Chen dismissed; monetary trespass claims largely dismissed for lack of valuation evidence.

Orders

  • LZL entitled to possession of the Land and an injunction to prevent further trespass
  • Claim of LZL against SGL and Madam Chen allowed except monetary claims for mense profits (dismissed)