WORLD HOUSEWARE PRODUCING COMPANY LTD v. CHAU KAM TONG

WORLD HOUSEWARE PRODUCING COMPANY LTD v. CHAU KAM TONG

On the balance of probabilities the defendant instructed Broder and Hoffman to pay Kin Shing Company and received RMB30,000 into his personal account; those acts breached the implied duties of honesty and acting in the plaintiff's best interests and caused loss; damages of US$35,711.90 and RMB30,000 are awarded, interest at judgment rate is allowed, but fraud was not established due to lack of cogent evidence of personal financial gain so equitable remedies were refused; plaintiff entitled to set off the Labour Tribunal award; costs to follow event with specified exclusions and taxation for legal aid.

Citation
WORLD HOUSEWARE PRODUCING COMPANY LTD v. CHAU KAM TONG
Parties
Employer: Plaintiff; Employee: Defendant
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
18 February 2014
Case Number
DCCJ1640/2012
Procedural Posture
Civil Employment / Breach of Fiduciary Duty / Judgment (district Court)
Outcome
Judgment for the Plaintiff. Defendant liable for damages for breach of fiduciary duties; fraud not established; equitable remedies refused.
Legal Topics
Breach of Fiduciary Duty, Fraud Allegation, Unjust Enrichment, Accounting for Profits, Set Off, Preliminary and Final Reliefs, Costs
Source Language
EN
Employment Law Fiduciary Duty Contract Law Tort Equity and Trusts Breach of Fiduciary Duty Fraud Allegation Unjust Enrichment +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 12 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Plaintiff

Employer

Defendant

Employee

Procedural Posture

Civil Employment / Breach of Fiduciary Duty / Judgment (district Court)

Legal Issues

  1. 1 Whether the defendant breached implied duties as employee/agent by diverting payments to a third party or himself
  2. 2 Whether payments were authorised or at the request of the overseas customers or Kin Shing Company
  3. 3 Whether the defendant committed fraud or dishonest/conspiratorial conduct

Ratio Decidendi

On the balance of probabilities the defendant instructed Broder and Hoffman to pay Kin Shing Company and received RMB30,000 into his personal account; those acts breached the implied duties of honesty and acting in the plaintiff's best interests and caused loss; damages of US$35,711.90 and RMB30,000 are awarded, interest at judgment rate is allowed, but fraud was not established due to lack of cogent evidence of personal financial gain so equitable remedies were refused; plaintiff entitled to set off the Labour Tribunal award; costs to follow event with specified exclusions and taxation for legal aid.

Court Disposition

Judgment for the Plaintiff. Defendant liable for damages for breach of fiduciary duties; fraud not established; equitable remedies refused.

Orders

  • Defendant to pay damages to Plaintiff of USD 35,711.90
  • Defendant to pay damages to Plaintiff of RMB 30,000