CHAN CHUEN WING DAVID v. TOMEI INDUSTRIAL (HOLDINGS) LTD. AND OTHERS

CHAN CHUEN WING DAVID v. TOMEI INDUSTRIAL (HOLDINGS) LTD. AND OTHERS

Judge found Mr Alex Wong credible and Mr David Chan not credible; concluded Chan made the representation on 11 July that nothing special was happening, knew it was untrue because he was aware of the impending Guangnan placement, and Wong relied on that fraudulent misrepresentation; accordingly the defendants were entitled to treat the contract as rescinded and the plaintiff's claim fails.

Citation
CHAN CHUEN WING DAVID v. TOMEI INDUSTRIAL (HOLDINGS) LTD. AND OTHERS
Parties
Plaintiff: CHAN CHUEN WING, DAVID; 1st Defendant: TOMEI INDUSTRIAL (HOLDINGS) LIMITED; 2nd Defendant: WONG NGOK CHUNG; 3rd Defendant: TOMEI INTERNATIONAL (HOLDINGS) LIMITED; 4th Defendant: QUICK MOTION LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 February 2000
Case Number
HCCL134/1997
Procedural Posture
Commercial Action (share Transaction Dispute) / Judgment After Trial
Outcome
Plaintiff's claim dismissed against the 3rd and 4th defendants; defendants' plea of rescission for fraudulent misrepresentation upheld
Legal Topics
Fraudulent Misrepresentation, Rescission, Damages, Specific Performance, Insider Dealing Allegation, Contracting Party/agency
Source Language
EN
Contract Law Tort (deceit/misrepresentation) Securities Regulation Fraudulent Misrepresentation Rescission Damages Specific Performance Insider Dealing Allegation +1 more

Case Brief

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Parties

CHAN CHUEN WING, DAVID

Plaintiff

TOMEI INDUSTRIAL (HOLDINGS) LIMITED

1st Defendant

WONG NGOK CHUNG

2nd Defendant

TOMEI INTERNATIONAL (HOLDINGS) LIMITED

3rd Defendant

QUICK MOTION LIMITED

4th Defendant

Procedural Posture

Commercial Action (share Transaction Dispute) / Judgment After Trial

Legal Issues

  1. 1 Whether plaintiff made a fraudulent misrepresentation to induce the sale on 11 July 1997
  2. 2 Whether defendants validly rescinded the contract for fraud and reliance
  3. 3 Which entity was the contracting party for enforcement (Tomei v Quick Motion)

Ratio Decidendi

Judge found Mr Alex Wong credible and Mr David Chan not credible; concluded Chan made the representation on 11 July that nothing special was happening, knew it was untrue because he was aware of the impending Guangnan placement, and Wong relied on that fraudulent misrepresentation; accordingly the defendants were entitled to treat the contract as rescinded and the plaintiff's claim fails.

Court Disposition

Plaintiff's claim dismissed against the 3rd and 4th defendants; defendants' plea of rescission for fraudulent misrepresentation upheld

Orders

  • The plaintiff's claim against the 3rd and 4th defendants is dismissed
  • There be an order nisi that the plaintiff do pay the costs of this action against the 3rd and 4th defendants, such costs to be taxed if not agreed