LIN GUIFEI, as the administratrix of the estate of LEE KIN WAH, Deceased v. LUI CHUNG since Deceased, LUI PO KIN RICKY, appointed by an Order dated 28th March 2025 to represent the Estate of LUI CHUNG, Deceased AND ANOTHER

LIN GUIFEI, as the administratrix of the estate of LEE KIN WAH, Deceased v. LUI CHUNG since Deceased, LUI PO KIN RICKY, appointed by an Order dated 28th March 2025 to represent the Estate of LUI CHUNG, Deceased AND ANOTHER

The court found the Last Partnership was dissolved on the Deceased's death; the Post-2017 Luen Fat carried on the business of the firm and at least some partnership assets (including unaccounted cash and unreconciled entitlements beyond the HK$312,696.20 cashier order) were utilised by the Defendants; the Defendants failed to discharge the burden of proving non-use of partnership assets; all statutory conditions in s44 were satisfied; therefore the Plaintiff is entitled to relief under s44 and the court ordered taking of partnership account, inquiries and tracing and found misappropriation of the Deceased's entitlements beyond the cashier order.

Citation
[2025] HKCFI 1904
Parties
Plaintiff (administratrix of the Estate of Lee Kin Wah, Deceased): Lin Guifei; 1st Defendant (deceased; Estate Represented by Ricky Lui): Lui Chung; 2nd Defendant: Yau Man Yick
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 May 2025
Case Number
HCA596/2021
Procedural Posture
Civil Partnership Dispute and Equitable Claims / Judgment at Trial (high Court, Court of First Instance)
Outcome
Judgment in favour of the Plaintiff in part: court found s44 conditions satisfied and misappropriation of some of the Deceased's entitlements; ordered taking of partnership account, inquiries and tracing; costs awarded to Plaintiff on a 70% basis.
Legal Topics
Dissolution of Partnership, Section 44 Partnership Ordinance, Taking of Partnership Account, Constructive Trust, Misappropriation of Partnership Assets, Tracing, Costs Apportionment
Source Language
EN
Partnership Law Trusts and Equitable Remedies Fiduciary Duties Accounting and Tracing Civil Procedure Dissolution of Partnership Section 44 Partnership Ordinance Taking of Partnership Account +4 more

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Parties

Lin Guifei

Plaintiff (administratrix of the Estate of Lee Kin Wah, Deceased)

Lui Chung

1st Defendant (deceased; Estate Represented by Ricky Lui)

Yau Man Yick

2nd Defendant

Procedural Posture

Civil Partnership Dispute and Equitable Claims / Judgment at Trial (high Court, Court of First Instance)

Legal Issues

  1. 1 Whether the business carried on after the deceased's death amounted to carry on the business of the firm for s44 purposes
  2. 2 Whether the Last Partnership was dissolved by the death of the deceased
  3. 3 Whether the Plaintiff is entitled to relief under s44 of the Partnership Ordinance

Ratio Decidendi

The court found the Last Partnership was dissolved on the Deceased's death; the Post-2017 Luen Fat carried on the business of the firm and at least some partnership assets (including unaccounted cash and unreconciled entitlements beyond the HK$312,696.20 cashier order) were utilised by the Defendants; the Defendants failed to discharge the burden of proving non-use of partnership assets; all statutory conditions in s44 were satisfied; therefore the Plaintiff is entitled to relief under s44 and the court ordered taking of partnership account, inquiries and tracing and found misappropriation of the Deceased's entitlements beyond the cashier order.

Court Disposition

Judgment in favour of the Plaintiff in part: court found s44 conditions satisfied and misappropriation of some of the Deceased's entitlements; ordered taking of partnership account, inquiries and tracing; costs awarded to Plaintiff on a 70% basis.

Orders

  • There shall be taking of the partnership account of the Last Partnership as at 31 December 2016 including an account of all the Deceased's entitlements
  • There shall be an account of and inquiries into what assets of the Last Partnership have been utilised by the 1st and 2nd Defendants in the Post-2017 Luen Fat and how they have been so utilised, including any profits generated