CHIU CHI TONG v. LAU CHONG SAI AND ANOTHER

CHIU CHI TONG v. LAU CHONG SAI AND ANOTHER

On assessment of contemporaneous accounting documents and witness credibility the plaintiff failed to prove he was a partner of Hing Yip Hong and failed to establish that Hing Yip Hong was wholly independent of Hing Fat Hong; the defendants failed to establish the alleged September 2001 and February 2002 oral agreements authorizing repayment and withdrawal; accordingly the withdrawal of HK$1.93 million was unauthorised and the disputed sum remains dealt with through court directions; costs to be addressed by a costs order nisi given both parties gave not entirely truthful testimony.

Citation
CHIU CHI TONG v. LAU CHONG SAI AND ANOTHER
Parties
Plaintiff: CHIU CHI TONG; 1st Defendant: LAU CHONG SAI; 2nd Defendant: LAU WAI YING
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 May 2005
Case Number
HCA765/2002
Procedural Posture
Civil Action for Dissolution of Partnership and Ancillary Relief / Judgment at Trial (court of First Instance)
Outcome
Plaintiff's claim that he was a partner of Hing Yip Hong is not proved; alleged dissolution and repayment agreements do not exist; withdrawal of HK$1.93 million was unauthorised; disputed sum paid into court and deposited in interest-bearing account; costs order nisi (no order as to costs)
Legal Topics
Dissolution of Partnership, Accounting and Inquiry, Conversion/unauthorised Withdrawal, Admissibility of Hearsay Evidence, Business Registration Entries, Costs Discretion
Source Language
EN
Partnership Law Evidence Civil Procedure Equity Dissolution of Partnership Accounting and Inquiry Conversion/unauthorised Withdrawal Admissibility of Hearsay Evidence +2 more

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Parties

CHIU CHI TONG

Plaintiff

LAU CHONG SAI

1st Defendant

LAU WAI YING

2nd Defendant

Procedural Posture

Civil Action for Dissolution of Partnership and Ancillary Relief / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 What was the parties' agreement regarding the partnership and identity of partners
  2. 2 Whether the alleged September 2001 agreement existed
  3. 3 Whether the alleged February 2002 agreement existed

Ratio Decidendi

On assessment of contemporaneous accounting documents and witness credibility the plaintiff failed to prove he was a partner of Hing Yip Hong and failed to establish that Hing Yip Hong was wholly independent of Hing Fat Hong; the defendants failed to establish the alleged September 2001 and February 2002 oral agreements authorizing repayment and withdrawal; accordingly the withdrawal of HK$1.93 million was unauthorised and the disputed sum remains dealt with through court directions; costs to be addressed by a costs order nisi given both parties gave not entirely truthful testimony.

Court Disposition

Plaintiff's claim that he was a partner of Hing Yip Hong is not proved; alleged dissolution and repayment agreements do not exist; withdrawal of HK$1.93 million was unauthorised; disputed sum paid into court and deposited in interest-bearing account; costs order nisi (no order as to costs)

Orders

  • Disputed sum of HK$1.93 million to be paid into court by 2nd Defendant (payment made 28 May 2002)
  • Disputed sum deposited into interest-bearing account (order dated 31 March 2004)