CHAN SHU CHUN AND ANOTHER v. DR KUNG YAN SUM AND OTHERS

CHAN SHU CHUN AND ANOTHER v. DR KUNG YAN SUM AND OTHERS

The plaintiffs failed to discharge the required cogent evidential burden to prove deceit by Dr Kung; consequentially the pleaded unlawful means conspiracy was not established against all defendants; even accepting some suspicious conduct, there was insufficient proof to implicate the Foundation or the Solicitors in knowingly participating in the conspiracy; no damages awarded and costs ordered against the plaintiffs (with indemnity costs limited to abandoned COSCO claims).

Citation
[2023] HKCFI 840
Parties
1st Plaintiff: CHAN SHU CHUN (陳書春); 2nd Plaintiff: KING BASE ENGINEERING LIMITED (卓基工程有限公司); 1st Defendant: DR KUNG YAN SUM (龔仁心); 2nd Defendant: HERO FORTUNE LIMITED (雄福有限公司); 3rd Defendant: CHINACHEM CHARITABLE FOUNDATION LIMITED (華懋慈善基金有限公司); 4th Defendant: MESSRS PHILIP KH WONG, KENNEDY YH WONG & CO
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 April 2023
Case Number
HCA832/2014
Procedural Posture
Civil (deceit, Conspiracy, Conversion) / Judgment (trial Concluded)
Outcome
Plaintiffs' claims dismissed on the evidence; no award of damages; costs ordered against Plaintiffs with indemnity costs limited to the abandoned COSCO claims and directions for taxation.
Legal Topics
Deceit, Unlawful Means Conspiracy, Dishonesty and Blind Eye Knowledge, Attribution of Director Knowledge to Company, Damages and Costs
Source Language
EN
Tort Conspiracy Conversion Charity Law Professional Conduct/anti Money Laundering Deceit Unlawful Means Conspiracy Dishonesty and Blind Eye Knowledge +2 more

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Parties

CHAN SHU CHUN (陳書春)

1st Plaintiff

KING BASE ENGINEERING LIMITED (卓基工程有限公司)

2nd Plaintiff

DR KUNG YAN SUM (龔仁心)

1st Defendant

HERO FORTUNE LIMITED (雄福有限公司)

2nd Defendant

CHINACHEM CHARITABLE FOUNDATION LIMITED (華懋慈善基金有限公司)

3rd Defendant

MESSRS PHILIP KH WONG, KENNEDY YH WONG & CO

4th Defendant

Procedural Posture

Civil (deceit, Conspiracy, Conversion) / Judgment (trial Concluded)

Legal Issues

  1. 1 Whether Dr Kung made a false representation inducing issue of the HK$50m cheque
  2. 2 Whether representation was made knowingly false and acted upon (deceit)
  3. 3 Whether there was a common agreement to injure (conspiracy) involving all defendants

Ratio Decidendi

The plaintiffs failed to discharge the required cogent evidential burden to prove deceit by Dr Kung; consequentially the pleaded unlawful means conspiracy was not established against all defendants; even accepting some suspicious conduct, there was insufficient proof to implicate the Foundation or the Solicitors in knowingly participating in the conspiracy; no damages awarded and costs ordered against the plaintiffs (with indemnity costs limited to abandoned COSCO claims).

Court Disposition

Plaintiffs' claims dismissed on the evidence; no award of damages; costs ordered against Plaintiffs with indemnity costs limited to the abandoned COSCO claims and directions for taxation.

Orders

  • Costs on the COSCO Claims as against the Foundation to be borne by the Plaintiffs on indemnity basis from 19 May 2017
  • Costs of the action to be taxed as if the trial had been fixed for 7 days