JOSEPH HAYIM HAYIM AND ANOTHER v. CHITIBANK N.A. AND ANOTHER

JOSEPH HAYIM HAYIM AND ANOTHER v. CHITIBANK N.A. AND ANOTHER

The trustee (Hongkong Bank Trustee Ltd) breached the trust after 1 June 1981 by failing to exercise its power to sell or properly postpone sale in light of the expressed wishes of the true beneficiaries (Joseph and George) and the absence of instructions from Citibank; the second plaintiff had locus standi because special circumstances and a substantial impediment to Citibank prosecuting the claim existed; relief under Trustee Ordinance s60 is not available because the paid trustee did not act reasonably (failed to seek court directions or legal advice and acted contrary to the Testator's expressed limited wish).

Citation
JOSEPH HAYIM HAYIM AND ANOTHER v. CHITIBANK N.A. AND ANOTHER
Parties
1st Plaintiff: Joseph Hayim Hayim; 2nd Plaintiff: George Isaac Hayim; 1st Defendant: Citibank N.A.; 2nd Defendant: Hongkong Bank Trustee Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 January 1985
Case Number
HCA652/1983
Procedural Posture
Breach of Trust / Judgment at Trial (high Court)
Outcome
Judgment for second plaintiff (George). Defendant found in breach of trust for failing to sell after 1 June 1981.
Legal Topics
Breach of Trust, Trustee Duties and Discretion, Trust for Sale, Locus Standi of Beneficiaries to Sue, Relief Under Trustee Ordinance S60, Construction of Wills
Source Language
EN
Trusts Wills and Probate Equity Civil Procedure Breach of Trust Trustee Duties and Discretion Trust for Sale Locus Standi of Beneficiaries to Sue +2 more

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Parties

Joseph Hayim Hayim

1st Plaintiff

George Isaac Hayim

2nd Plaintiff

Citibank N.A.

1st Defendant

Hongkong Bank Trustee Limited

2nd Defendant

Procedural Posture

Breach of Trust / Judgment at Trial (high Court)

Legal Issues

  1. 1 Construction and effect of Clause 10 of the American will
  2. 2 Whether the defendant trustee breached its duty by failing to sell after beneficiaries withdrew consent in June 1981
  3. 3 Whether the second plaintiff had locus standi to sue directly

Ratio Decidendi

The trustee (Hongkong Bank Trustee Ltd) breached the trust after 1 June 1981 by failing to exercise its power to sell or properly postpone sale in light of the expressed wishes of the true beneficiaries (Joseph and George) and the absence of instructions from Citibank; the second plaintiff had locus standi because special circumstances and a substantial impediment to Citibank prosecuting the claim existed; relief under Trustee Ordinance s60 is not available because the paid trustee did not act reasonably (failed to seek court directions or legal advice and acted contrary to the Testator's expressed limited wish).

Court Disposition

Judgment for second plaintiff (George). Defendant found in breach of trust for failing to sell after 1 June 1981.

Orders

  • Judgment entered for the second plaintiff against the second defendant for breach of trust
  • Court to hear counsel and receive a minute as to the order for sale and the enquiry and reconstitution of the trust