SL v. CPYD AND ANOTHER

SL v. CPYD AND ANOTHER

Hong Kong law governs the in personam equitable dispute between parties amenable to the Hong Kong court; the Husband failed to prove on the balance of probabilities that the Father paid the whole purchase price or that there was any evidentially-supported common intention to create a constructive trust; documentary and oral evidence made it more likely that the purchase price (or part of it) came from the Husband and Wife; accordingly claims for constructive and resulting trusts fail and the Husband is the sole beneficial owner (from late 2010) so the property forms part of the matrimonial assets.

Citation
[2020] HKFC 105
Parties
Petitioner: SL; 1st Respondent: CPYD; 2nd Respondent: LKC
Court
Family Court
Jurisdiction
Hong Kong
Judgment Date
20 May 2020
Case Number
FCMC12136/2011
Procedural Posture
Matrimonial Causes (divorce Ancillary Relief) / Preliminary Issue Trial on Beneficial Interest (judgment)
Outcome
Husband's and Father's claims for constructive and resulting trusts dismissed; Wife succeeds on preliminary issue; disputed property found to be part of matrimonial assets and Husband sole beneficial owner from late 2010.
Legal Topics
Constructive Trust, Resulting Trust, Choice of Law (lex Situs), Beneficial Ownership, Ancillary Relief
Source Language
EN
Family Law Trusts and Equitable Interests Conflict of Laws Property Law Constructive Trust Resulting Trust Choice of Law (lex Situs) Beneficial Ownership +1 more

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Parties

SL

Petitioner

CPYD

1st Respondent

LKC

2nd Respondent

Procedural Posture

Matrimonial Causes (divorce Ancillary Relief) / Preliminary Issue Trial on Beneficial Interest (judgment)

Legal Issues

  1. 1 Which law applies to determine beneficial interest in Mainland property (Hong Kong law or PRC law)?
  2. 2 Whether there was a common intention to create a constructive trust in favour of the Father
  3. 3 Whether the purchase price was paid by the Father or by the Husband and Wife

Ratio Decidendi

Hong Kong law governs the in personam equitable dispute between parties amenable to the Hong Kong court; the Husband failed to prove on the balance of probabilities that the Father paid the whole purchase price or that there was any evidentially-supported common intention to create a constructive trust; documentary and oral evidence made it more likely that the purchase price (or part of it) came from the Husband and Wife; accordingly claims for constructive and resulting trusts fail and the Husband is the sole beneficial owner (from late 2010) so the property forms part of the matrimonial assets.

Court Disposition

Husband's and Father's claims for constructive and resulting trusts dismissed; Wife succeeds on preliminary issue; disputed property found to be part of matrimonial assets and Husband sole beneficial owner from late 2010.

Orders

  • Costs to follow the event; costs against the Husband and the Father including all reserved costs with a certificate for counsel
  • Order nisi for costs to be made absolute after 14 days from handing down of judgment