MUSIC HOLDINGS PROPERTY HK LTD (formerly known as BECKTON INTERNATIONAL LTD) AND ANOTHER v. LARRY BRENDON MANAGEMENT LTD AND OTHERS

MUSIC HOLDINGS PROPERTY HK LTD (formerly known as BECKTON INTERNATIONAL LTD) AND ANOTHER v. LARRY BRENDON MANAGEMENT LTD AND OTHERS

The court found on the evidence that Lau acted as agent for the plaintiffs and, from the inception of the arrangement, held the funds in both HSBC accounts on trust for the respective plaintiffs; Lau failed to prove any oral service‑fee agreements so her set‑off/counterclaim was dismissed; sums were awarded to Music Holdings (HK$360,000) and Coolaudio (HK$3,584,719.09) with interest, the funds paid into court were to be applied to satisfy those judgments, and plaintiffs were entitled to declarations and to trace the funds transferred to Larry Brendon, who held them on behalf of Lau and is accountable.

Citation
[2020] HKCFI 1312
Parties
1st Plaintiff: Music Holdings Property HK Ltd; 2nd Plaintiff: Coolaudio International Limited; Defendant (hca1945): Ooi Lean Choo (Alsie Lau); 1st Defendant (hca2304): Larry Brendon Management Limited; 2nd Defendant (discontinued): Larry Brendon CPA Limited; 3rd Defendant (discontinued): Kian Hwa Yuen
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 June 2020
Case Number
HCA2304/2014
Procedural Posture
Civil Trial: Equitable Trust, Unjust Enrichment, Proprietary Tracing and Related Declarations / Judgment at Trial (court of First Instance)
Outcome
Judgment for the plaintiffs on trust and restitution claims; counterclaim by Lau dismissed; declarations against Larry Brendon; costs ordered nisi to plaintiffs
Legal Topics
Constructive/resulting Trust, Agency and Fiduciary Duties, Unjust Enrichment, Mareva Injunction, Oral Contract (set Off), Costs
Source Language
EN
Trusts Restitution (unjust Enrichment) Proprietary Tracing Civil Procedure Equity Constructive/resulting Trust Agency and Fiduciary Duties Unjust Enrichment +3 more

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Parties

Music Holdings Property HK Ltd

1st Plaintiff

Coolaudio International Limited

2nd Plaintiff

Ooi Lean Choo (Alsie Lau)

Defendant (hca1945)

Larry Brendon Management Limited

1st Defendant (hca2304)

Larry Brendon CPA Limited

2nd Defendant (discontinued)

Kian Hwa Yuen

3rd Defendant (discontinued)

Procedural Posture

Civil Trial: Equitable Trust, Unjust Enrichment, Proprietary Tracing and Related Declarations / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 Whether funds in Lau's HSBC accounts (No 1 and No 2) were held on trust for Music Holdings and Coolaudio respectively
  2. 2 Whether plaintiffs had an alternative restitutionary (unjust enrichment) claim against Lau
  3. 3 Whether oral agreements existed entitling Lau to monthly service fees (set-off/counterclaim)

Ratio Decidendi

The court found on the evidence that Lau acted as agent for the plaintiffs and, from the inception of the arrangement, held the funds in both HSBC accounts on trust for the respective plaintiffs; Lau failed to prove any oral service‑fee agreements so her set‑off/counterclaim was dismissed; sums were awarded to Music Holdings (HK$360,000) and Coolaudio (HK$3,584,719.09) with interest, the funds paid into court were to be applied to satisfy those judgments, and plaintiffs were entitled to declarations and to trace the funds transferred to Larry Brendon, who held them on behalf of Lau and is accountable.

Court Disposition

Judgment for the plaintiffs on trust and restitution claims; counterclaim by Lau dismissed; declarations against Larry Brendon; costs ordered nisi to plaintiffs

Orders

  • Declaration that funds in Lau's HSBC account no 809-500549-833 are held on trust for Music Holdings Property HK Ltd and account to it
  • Declaration that funds in Lau's HSBC account no 1109046746 are held on trust for Coolaudio International Limited and account to it