CHAN CHEUNG HING v. CHAN TANG LAN AND OTHERS

CHAN CHEUNG HING v. CHAN TANG LAN AND OTHERS

The wife held the properties on trust for herself and the husband in equal shares; the court found the purported tenancies and certain assignments to be shams concocted to defeat the husband's interest, that D2–D4 knowingly participated, and therefore awarded equitable compensation (damages) against the wife and against assisting defendants jointly where appropriate, set aside the impugned tenancies, and appointed a receiver to protect and realize the assets.

Citation
CHAN CHEUNG HING v. CHAN TANG LAN AND OTHERS
Parties
Plaintiff: CHAN CHEUNG HING; 1st Defendant: CHAN TANG LAN; 2nd Defendant: YUEN FUNG KIU; 3rd Defendant: CHAN YING LUN; 4th Defendant: YIM CHUI LING
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 January 1989
Case Number
HCA4568/1987
Procedural Posture
Civil; Trusts and Property Dispute Arising From Matrimonial Proceedings / Judgment (assessment of Remedies and Appointment of Receiver)
Outcome
Judgment for plaintiff. Impugned tenancies declared sham and set aside; damages awarded against defendants; receiver appointed over three premises; further orders for sale/realization and costs to be determined and formal orders to be drawn.
Legal Topics
Breach of Trust, Sham Transaction, Knowing Assistance to Breach of Trust, Equitable Compensation (damages), Appointment of Receiver, Order for Sale/partition
Source Language
EN
Trusts Property Law Family Law Equity Civil Procedure Breach of Trust Sham Transaction Knowing Assistance to Breach of Trust +3 more

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Parties

CHAN CHEUNG HING

Plaintiff

CHAN TANG LAN

1st Defendant

YUEN FUNG KIU

2nd Defendant

CHAN YING LUN

3rd Defendant

YIM CHUI LING

4th Defendant

Procedural Posture

Civil; Trusts and Property Dispute Arising From Matrimonial Proceedings / Judgment (assessment of Remedies and Appointment of Receiver)

Legal Issues

  1. 1 Whether the wife breached her duties as trustee by creating sham tenancies and transfers to defeat the husband's beneficial interest
  2. 2 Whether the purported tenancies and assignments were shams and therefore void
  3. 3 Whether the 2nd, 3rd and 4th defendants knowingly assisted the breach of trust

Ratio Decidendi

The wife held the properties on trust for herself and the husband in equal shares; the court found the purported tenancies and certain assignments to be shams concocted to defeat the husband's interest, that D2–D4 knowingly participated, and therefore awarded equitable compensation (damages) against the wife and against assisting defendants jointly where appropriate, set aside the impugned tenancies, and appointed a receiver to protect and realize the assets.

Court Disposition

Judgment for plaintiff. Impugned tenancies declared sham and set aside; damages awarded against defendants; receiver appointed over three premises; further orders for sale/realization and costs to be determined and formal orders to be drawn.

Orders

  • Impugned tenancies in respect of the four premises declared shams and set aside
  • Judgment for damages against 1st Defendant (wife) in the sum of 488500 HKD