CHOW KAM HUNG v. HOI KONG IRONWARES GODOWN CO LTD

CHOW KAM HUNG v. HOI KONG IRONWARES GODOWN CO LTD

The court found the ironmongery/stainless steel partnership was dissolved by agreement on 15 October 2004; no binding oral settlement of accounts was proved; plaintiff's claims for accounts and for profit sharing under the oral promise are governed by the Limitation Ordinance and, on the facts, are time-barred; although 'net profits' would include rental income and the oral promise was supported by consideration, limitation extinguished the actionable claims.

Citation
[2022] HKDC 1368
Parties
Plaintiff: Chow Kam Hung; Person Appointed to Represent the Estate of Ng Wai Kwong (1st Defendant): Wong Kiu; Deceased 1st Defendant: Ng Wai Kwong (deceased); 2nd Defendant: Shine Wheel Limited; Defendant / Counterclaimant in Dccj5138/2019: Hoi Kong Ironwares Godown Company Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
28 November 2022
Case Number
DCCJ5138/2019
Procedural Posture
Civil Litigation: Partnership, Contract and Property Disputes / Judgment (district Court)
Outcome
Plaintiff's actions in DCCJ5138/2019 and DCCJ5127/2019 dismissed; Hoi Kong's counterclaim dismissed; costs awarded to defendants as ordered below
Legal Topics
Dissolution of Partnership, Accounting and Inquiry, Limitation of Actions, Oral Promises and Consideration, Construction of Agreements, Interest on Capital
Source Language
EN
Partnership Law Contract Law Property Law Limitation Law Equity Dissolution of Partnership Accounting and Inquiry Limitation of Actions +3 more

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Parties

Chow Kam Hung

Plaintiff

Wong Kiu

Person Appointed to Represent the Estate of Ng Wai Kwong (1st Defendant)

Ng Wai Kwong (deceased)

Deceased 1st Defendant

Shine Wheel Limited

2nd Defendant

Hoi Kong Ironwares Godown Company Limited

Defendant / Counterclaimant in Dccj5138/2019

Procedural Posture

Civil Litigation: Partnership, Contract and Property Disputes / Judgment (district Court)

Legal Issues

  1. 1 Whether the ironmongery and stainless steel partnership was dissolved on 15 October 2004
  2. 2 Whether capital of HK$300,000 bore interest at prime+2%
  3. 3 Whether an alleged oral settlement agreement was made and settled accounts

Ratio Decidendi

The court found the ironmongery/stainless steel partnership was dissolved by agreement on 15 October 2004; no binding oral settlement of accounts was proved; plaintiff's claims for accounts and for profit sharing under the oral promise are governed by the Limitation Ordinance and, on the facts, are time-barred; although 'net profits' would include rental income and the oral promise was supported by consideration, limitation extinguished the actionable claims.

Court Disposition

Plaintiff's actions in DCCJ5138/2019 and DCCJ5127/2019 dismissed; Hoi Kong's counterclaim dismissed; costs awarded to defendants as ordered below

Orders

  • DCCJ5138/2019: Plaintiff's action dismissed; Hoi Kong's counterclaim dismissed
  • DCCJ5127/2019: Plaintiff's action dismissed