BILLION LEAD INVESTMENT LTD v. UNION JOYCE LTD AND OTHERS

BILLION LEAD INVESTMENT LTD v. UNION JOYCE LTD AND OTHERS

Paragraph 6(iii) of the settlement Schedule completed the valuation process and made the valuer's decision in the May Report final and conclusive; the court will only interfere if the valuer materially departed from instructions; no material departure was shown (including on treatment of bills payable and application of IVS), so the May Report stands and the respondents' summons is dismissed.

Citation
BILLION LEAD INVESTMENT LTD v. UNION JOYCE LTD AND OTHERS
Parties
Petitioner: BILLION LEAD INVESTMENT LIMITED; 1st Respondent: UNION JOYCE LIMITED; 2nd Respondent: CHAU KWAI CHEONG; 3rd Respondent: YIU FUNG KUEN; 4th Respondent: TALENT WEAVING DYEING & PRINTING LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 August 2015
Case Number
HCMP2145/2011
Procedural Posture
Companies Ordinance S168 a Valuation Dispute / Hearing and Judgment
Outcome
Respondents' summons dismissed; petitioner's summons granted in part
Legal Topics
Binding Expert Valuation, Interpretation of Settlement Terms, International Valuation Standards Application, Net Debt Calculation, Discount for Lack of Marketability
Source Language
EN
Company Law Civil Procedure Contract Enforcement Expert Determination Binding Expert Valuation Interpretation of Settlement Terms International Valuation Standards Application Net Debt Calculation +1 more

Case Brief

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Parties

BILLION LEAD INVESTMENT LIMITED

Petitioner

UNION JOYCE LIMITED

1st Respondent

CHAU KWAI CHEONG

2nd Respondent

YIU FUNG KUEN

3rd Respondent

TALENT WEAVING DYEING & PRINTING LIMITED

4th Respondent

Procedural Posture

Companies Ordinance S168 a Valuation Dispute / Hearing and Judgment

Legal Issues

  1. 1 Whether the valuer's final report is final and binding under paragraph 6(iii) of the settlement Schedule
  2. 2 Whether the valuer materially departed from its instructions or IVS such that the court should set aside the valuation
  3. 3 Whether bills payable should be included in net debt calculation

Ratio Decidendi

Paragraph 6(iii) of the settlement Schedule completed the valuation process and made the valuer's decision in the May Report final and conclusive; the court will only interfere if the valuer materially departed from instructions; no material departure was shown (including on treatment of bills payable and application of IVS), so the May Report stands and the respondents' summons is dismissed.

Court Disposition

Respondents' summons dismissed; petitioner's summons granted in part

Orders

  • Respondents' summons dismissed
  • Respondents to reimburse petitioner US$88,500 to cover outstanding valuer fees within 14 days