MUSIC HOLDINGS PROPERTY HK LTD (formerly known as BECKTON INTERNATIONAL LTD) AND ANOTHER v. OOI LEAN CHOO (also known as ALSIE LAU)

MUSIC HOLDINGS PROPERTY HK LTD (formerly known as BECKTON INTERNATIONAL LTD) AND ANOTHER v. OOI LEAN CHOO (also known as ALSIE LAU)

The court found as fact that Lau acted as agent for the Plaintiffs and the two HSBC accounts were used solely to receive and hold Plaintiffs' funds under instructions from Mr Behringer; her conscience was affected and she held those funds on trust from the inception of the arrangement, such that the Plaintiffs had proprietary interests enforceable against subsequent holders; Lau failed to prove the alleged oral service‑fee agreements, so set off and counterclaim were dismissed; monies transferred to Larry Brendon were traceable and subject to the Plaintiffs' proprietary rights.

Citation
[2020] HKCFI 1312
Parties
1st Plaintiff: Music Holdings Property HK Ltd; 2nd Plaintiff: Coolaudio International Limited; Defendant (hca1945): Ooi Lean Choo (also known as 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
HCA1945/2014
Procedural Posture
Civil Trial Trust, Restitution and Proprietary Claims / Judgment (trial)
Outcome
Judgment for the Plaintiffs; declarations granted; counterclaim dismissed; monetary judgments awarded with interest; tracing and proprietary claims against Larry Brendon established
Legal Topics
Constructive Trust, Resulting Trust, Unjust Enrichment, Tracing, Mareva Injunction, Set Off and Counterclaim, Declarations, Interest on Judgment
Source Language
EN
Trusts Equity Restitution Civil Procedure Commercial Law Constructive Trust Resulting Trust Unjust Enrichment +5 more

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Parties

Music Holdings Property HK Ltd

1st Plaintiff

Coolaudio International Limited

2nd Plaintiff

Ooi Lean Choo (also known as 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 Trust, Restitution and Proprietary Claims / Judgment (trial)

Legal Issues

  1. 1 Whether funds in Lau's No 1 Account were held on trust for Music Holdings or subject to restitution
  2. 2 Whether funds in Lau's No 2 Account were held on trust for Coolaudio or subject to restitution
  3. 3 Whether oral agreements existed entitling Lau to monthly service fees (set off/counterclaim)

Ratio Decidendi

The court found as fact that Lau acted as agent for the Plaintiffs and the two HSBC accounts were used solely to receive and hold Plaintiffs' funds under instructions from Mr Behringer; her conscience was affected and she held those funds on trust from the inception of the arrangement, such that the Plaintiffs had proprietary interests enforceable against subsequent holders; Lau failed to prove the alleged oral service‑fee agreements, so set off and counterclaim were dismissed; monies transferred to Larry Brendon were traceable and subject to the Plaintiffs' proprietary rights.

Court Disposition

Judgment for the Plaintiffs; declarations granted; counterclaim dismissed; monetary judgments awarded with interest; tracing and proprietary claims against Larry Brendon established

Orders

  • Declarations in HCA1945 that Lau held funds in No 1 and No 2 Accounts on trust for the Plaintiffs and account to the Plaintiffs
  • Judgment for Music Holdings against Lau for HK$360000 with interest at prime plus 1% from writ to judgment and thereafter at judgment rate until payment