CHEUNG MAN YU v. LAU YUEN CHING AND OTHERS

CHEUNG MAN YU v. LAU YUEN CHING AND OTHERS

The court held that the 4th respondent existed though it was not a public charity, found the disputed funds were traceable to government compensation intended for charitable use and that the unilateral removal of the money by the 1st and 2nd respondents amounted to a breach of trust which was the cause of litigation; accordingly the costs order nisi was not varied and the 1st to 3rd respondents were ordered to pay the applicant's costs of the variation application, with leave to appeal refused.

Citation
CHEUNG MAN YU v. LAU YUEN CHING AND OTHERS
Parties
Applicant: Cheung Man Yu; 1st Respondent: Lau Yuen Ching; 2nd Respondent: Lau Chun Yau; 3rd Respondent: Lin Fat Tong Company Limited; 4th Respondent: Lin Fat Tong (an unincorporated Association); 5th Respondent: The Secretary for Justice
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 June 2006
Case Number
HCMP2421/2000
Procedural Posture
Miscellaneous Proceedings (trusts/charity) / Post‑judgment Application to Vary Costs Order Nisi and Application for Leave to Appeal
Outcome
Application to vary costs order nisi dismissed; application for leave to appeal dismissed; 1st to 3rd respondents ordered to pay costs of the variation application.
Legal Topics
Breach of Trust, Charitable Trust Status, Ownership of Trust Assets, Costs Orders, Bankers Evidence Orders, Leave to Appeal
Source Language
EN
Trusts Charity Law Civil Procedure Costs Breach of Trust Charitable Trust Status Ownership of Trust Assets Costs Orders +2 more

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Parties

Cheung Man Yu

Applicant

Lau Yuen Ching

1st Respondent

Lau Chun Yau

2nd Respondent

Lin Fat Tong Company Limited

3rd Respondent

Lin Fat Tong (an unincorporated Association)

4th Respondent

The Secretary for Justice

5th Respondent

Procedural Posture

Miscellaneous Proceedings (trusts/charity) / Post‑judgment Application to Vary Costs Order Nisi and Application for Leave to Appeal

Legal Issues

  1. 1 Whether the 4th respondent exists as an entity in its own right
  2. 2 Whether the 4th respondent is a public charity
  3. 3 Whether the compensation and bank funds belonged beneficially to the 4th respondent or to individuals

Ratio Decidendi

The court held that the 4th respondent existed though it was not a public charity, found the disputed funds were traceable to government compensation intended for charitable use and that the unilateral removal of the money by the 1st and 2nd respondents amounted to a breach of trust which was the cause of litigation; accordingly the costs order nisi was not varied and the 1st to 3rd respondents were ordered to pay the applicant's costs of the variation application, with leave to appeal refused.

Court Disposition

Application to vary costs order nisi dismissed; application for leave to appeal dismissed; 1st to 3rd respondents ordered to pay costs of the variation application.

Orders

  • Dismiss application to vary the order nisi
  • Order that the 1st to 3rd respondents pay the applicant's costs of the application to vary the costs order nisi