HUNG WAI KUEN AND OTHERS v. CHENG SHUN PING

HUNG WAI KUEN AND OTHERS v. CHENG SHUN PING

The court found on the balance of probabilities that there was no loan or oral representations rendering the Agreement and PSPA void; the Agreement and PSPA were binding contracts; Cheng breached the implied term not to obstruct the Development by asking the Lands Department to suspend applications; consequentially...

Source-derived case information.

Citation
[2023] HKCFI 949
Parties
1st Plaintiff: Hung Wai Kuen; 2nd Plaintiff: Chan Hok Yan; 3rd Plaintiff: Ng Chi Keung; Defendant: Cheng Shun Ping
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 April 2023
Case Number
HCA1674/2019
Procedural Posture
Civil Action Specific Performance and Damages (contract and Land/property) / Judgment
Outcome
Judgment entered for the Plaintiffs (Hung and Chan and Ng). Counterclaim dismissed. Costs awarded to Plaintiffs.
Legal Topics
Specific Performance, Rescission, Legal Charge, New Territories Exempted House (nteh), Stamp Duty Exemption, Damages, Misrepresentation, Obstruction of Development
Source Language
en
Contract Property Equity Land Law Civil Procedure Specific Performance Rescission Legal Charge +5 more

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Summary, issues, holding and outcome

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Parties

Hung Wai Kuen

1st Plaintiff

Chan Hok Yan

2nd Plaintiff

Ng Chi Keung

3rd Plaintiff

Cheng Shun Ping

Defendant

Procedural Posture

Civil Action Specific Performance and Damages (contract and Land/property) / Judgment

Legal Issues

  1. 1 Whether the Agreement and PSPA were genuine development contracts or merely collateral security for an oral loan/representations by the Plaintiffs
  2. 2 Whether the Legal Charge evidences a loan and is dischargeable on repayment
  3. 3 Whether Cheng breached an implied term not to obstruct the Development/house construction

Ratio Decidendi

The court found on the balance of probabilities that there was no loan or oral representations rendering the Agreement and PSPA void; the Agreement and PSPA were binding contracts; Cheng breached the implied term not to obstruct the Development by asking the Lands Department to suspend applications; consequentially Plaintiffs were not granted specific performance but were awarded damages (HKD4,368,000 to Hung and Chan; HKD2,910,000 to Ng) with interest; Cheng's counterclaim was dismissed and costs were awarded to Plaintiffs.

Court Disposition

Judgment entered for the Plaintiffs (Hung and Chan and Ng). Counterclaim dismissed. Costs awarded to Plaintiffs.

Orders

  • Judgment for 1st and 2nd Plaintiffs (Hung and Chan) in the sum of HKD4,368,000.
  • Judgment for 3rd Plaintiff (Ng) in the sum of HKD2,910,000.