LKFJ v. CFH

LKFJ v. CFH

On the facts the court concluded that the 1st Intervener made the entire contribution to acquisition and repayment of the G/F Property so a common intention constructive trust arises: the 1st Intervener is sole beneficial owner and the Husband holds his half on trust for the 1st Intervener; the 1/F Property was transferred by the Deceased in contemplation of her death as a gift for the 2nd Intervener via transfer into the Husband's name to be held on trust, and the Husband voluntarily assumed fiduciary duties so a fiduciary duty trust arises leaving the 2nd Intervener as sole beneficial owner subject to the life interest for the 1st Intervener and Madam Wong; costs follow the event with a...

Citation
[2019] HKFC 75
Parties
Petitioner (wife): LKFJ; Respondent (husband): Respondent (Husband); 1st Intervener (father): CHW; 2nd Intervener (child): CKT
Court
Family Court
Jurisdiction
Hong Kong
Judgment Date
22 March 2019
Case Number
FCMC10082/2016
Procedural Posture
Matrimonial Causes Ancillary Relief / Trial on Preliminary Issues (decision)
Outcome
Declarations granted in favour of interveners and trustee findings against the Husband; costs ordered nisi against the Wife on party-and-party basis with certificate for Counsel to be taxed if not agreed; nisi to become absolute unless varied within 14 days.
Legal Topics
Constructive Trust, Resulting Trust, Fiduciary Duty Trust, Beneficial Ownership, Life Interest, Costs Orders
Source Language
EN
Family Law Trusts and Equity Property Law Civil Procedure Constructive Trust Resulting Trust Fiduciary Duty Trust Beneficial Ownership +2 more

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Parties

LKFJ

Petitioner (wife)

Respondent (Husband)

Respondent (husband)

CHW

1st Intervener (father)

CKT

2nd Intervener (child)

Procedural Posture

Matrimonial Causes Ancillary Relief / Trial on Preliminary Issues (decision)

Legal Issues

  1. 1 Whether G/F property beneficially owned by 1st Intervener alone with Husband holding his legal half on constructive/resulting/express trust
  2. 2 Whether 1/F property was transferred to Husband to hold on trust for 2nd Intervener or was an outright gift to Husband
  3. 3 Whether a fiduciary duty trust arises from the circumstances of the 1/F transfer

Ratio Decidendi

On the facts the court concluded that the 1st Intervener made the entire contribution to acquisition and repayment of the G/F Property so a common intention constructive trust arises: the 1st Intervener is sole beneficial owner and the Husband holds his half on trust for the 1st Intervener; the 1/F Property was transferred by the Deceased in contemplation of her death as a gift for the 2nd Intervener via transfer into the Husband's name to be held on trust, and the Husband voluntarily assumed fiduciary duties so a fiduciary duty trust arises leaving the 2nd Intervener as sole beneficial owner subject to the life interest for the 1st Intervener and Madam Wong; costs follow the event with a...

Court Disposition

Declarations granted in favour of interveners and trustee findings against the Husband; costs ordered nisi against the Wife on party-and-party basis with certificate for Counsel to be taxed if not agreed; nisi to become absolute unless varied within 14 days.

Orders

  • Declaration that the 1st Intervener is the sole beneficial owner of G/F Property and that the Husband holds his half share on trust for the 1st Intervener
  • Declaration that the 2nd Intervener is the sole beneficial owner of the 1/F Property subject to the life interest of the 1st Intervener and Madam Wong and that the Husband holds the 1/F Property on trust for the 2nd Intervener