SEAN ERIC MCLEAN HOTUNG v. HILLHEAD LTD

SEAN ERIC MCLEAN HOTUNG v. HILLHEAD LTD

The pleaded condition that trustees were "not to be concerned with" management was not established as a binding trust condition; the plaintiff's substantive claims were dismissed except for a declaration that one share in Hotung Enterprises Limited held by the 1st defendant is held on trust for the plaintiff absolutely; rectification and injunctions sought were refused; costs were awarded against the plaintiff to the defendants generally, with the 4th defendant's costs to be borne by the plaintiff (taxed party and party and payable out of trust assets subject to taxation on trustee basis) and no indemnity costs awarded; applications relating to HCMP 2820/2002 and HCMP 4511/2002 were...

Citation
SEAN ERIC MCLEAN HOTUNG v. HILLHEAD LTD
Parties
Plaintiff: Eric Edward Hotung; 1st Defendant: Ho Yuen Ki; 2nd Defendant: Anthony Eric Ryan Hotung; 3rd Defendant: Sean Eric McLean Hotung; 4th Defendant: Hillhead Limited; 5th Defendant: Sheridan Patricia Hotung Shea; 6th Defendant: Gabrielle Marie Hotung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 June 2005
Case Number
HCMP2820/2002
Procedural Posture
Trusts and Company Litigation (consolidated Actions) / Post Trial Ruling on Order and Costs
Outcome
Plaintiff's claims dismissed save for a declaration that one share in Hotung Enterprises Limited held by the 1st defendant is held on trust for the plaintiff absolutely; costs orders as specified.
Legal Topics
Rectification of Trust Deed, Trustee Duties and Obligations, Fiduciary Duties of Managing Shareholder, Beddoe Applications, Costs Orders and Taxation
Source Language
EN
Trusts Company Law Civil Procedure Costs Rectification of Trust Deed Trustee Duties and Obligations Fiduciary Duties of Managing Shareholder Beddoe Applications +1 more

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Parties

Eric Edward Hotung

Plaintiff

Ho Yuen Ki

1st Defendant

Anthony Eric Ryan Hotung

2nd Defendant

Sean Eric McLean Hotung

3rd Defendant

Hillhead Limited

4th Defendant

Sheridan Patricia Hotung Shea

5th Defendant

Gabrielle Marie Hotung

6th Defendant

Procedural Posture

Trusts and Company Litigation (consolidated Actions) / Post Trial Ruling on Order and Costs

Legal Issues

  1. 1 Whether the pleaded condition that trustees were not to be concerned with management constituted a binding trust condition
  2. 2 Whether trust deeds should be rectified to impose restrictions on trustees' voting/management powers
  3. 3 Whether the plaintiff retained the right to manage companies free of interference by trustees

Ratio Decidendi

The pleaded condition that trustees were "not to be concerned with" management was not established as a binding trust condition; the plaintiff's substantive claims were dismissed except for a declaration that one share in Hotung Enterprises Limited held by the 1st defendant is held on trust for the plaintiff absolutely; rectification and injunctions sought were refused; costs were awarded against the plaintiff to the defendants generally, with the 4th defendant's costs to be borne by the plaintiff (taxed party and party and payable out of trust assets subject to taxation on trustee basis) and no indemnity costs awarded; applications relating to HCMP 2820/2002 and HCMP 4511/2002 were...

Court Disposition

Plaintiff's claims dismissed save for a declaration that one share in Hotung Enterprises Limited held by the 1st defendant is held on trust for the plaintiff absolutely; costs orders as specified.

Orders

  • Plaintiff\'s claim dismissed except that one share in Hotung Enterprises Limited held by the 1st Defendant is held by her on trust for the plaintiff absolutely.
  • Plaintiff to pay the costs of the 2nd, 3rd and 5th defendants in the consolidated action (party and party), taxed if not agreed.