GENG WEN v. ZHONG YING AND ANOTHER

GENG WEN v. ZHONG YING AND ANOTHER

On the pleaded and served facts, with no defence filed, the court treated the allegations as admitted, held that a constructive trust arose over HKD500,000 transferred into the 2nd defendant's account, granted a declaration and ancillary relief without a trial, gave retrospective leave to serve the ASOC out of jurisdiction, and ordered interest from 14 January 2021 to 3 December 2024 at prime plus 1 and thereafter at judgment rate.

Citation
[2024] HKCFI 3513
Parties
Plaintiff: GENG WEN; 1st Defendant: ZHONG YING; 2nd Defendant: CHEN KAIHUA
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 December 2024
Case Number
HCA239/2023
Procedural Posture
Civil Recovery of Funds/constructive Trust Arising From Fraud / Application for Judgment in Default of Defence After Service; Hearing on Summons for Declarations and Ancillary Relief
Outcome
Judgment entered for the plaintiff in default of defence against the 2nd defendant; declaration of constructive trust over HKD500,000; retrospective leave to serve ASOC out of jurisdiction; continuation of Mareva injunction; interest awarded.
Legal Topics
Default Judgment, Constructive Trust, Service Out of Jurisdiction, Mareva Injunction, Declarations, Fraudulent Scam Transfers, Retrospective Leave to Serve, Interest on Judgment
Source Language
EN
Civil Procedure Equity and Trusts Injunctions Default Judgment Constructive Trust Service Out of Jurisdiction Mareva Injunction Declarations +3 more

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Parties

GENG WEN

Plaintiff

ZHONG YING

1st Defendant

CHEN KAIHUA

2nd Defendant

Procedural Posture

Civil Recovery of Funds/constructive Trust Arising From Fraud / Application for Judgment in Default of Defence After Service; Hearing on Summons for Declarations and Ancillary Relief

Legal Issues

  1. 1 Whether judgment in default of defence should be entered against the 2nd defendant
  2. 2 Whether a constructive trust arose in respect of HKD500,000 paid into the 2nd defendant's account
  3. 3 Whether declaratory relief can be granted despite the underlying fraud and without a full trial

Ratio Decidendi

On the pleaded and served facts, with no defence filed, the court treated the allegations as admitted, held that a constructive trust arose over HKD500,000 transferred into the 2nd defendant's account, granted a declaration and ancillary relief without a trial, gave retrospective leave to serve the ASOC out of jurisdiction, and ordered interest from 14 January 2021 to 3 December 2024 at prime plus 1 and thereafter at judgment rate.

Court Disposition

Judgment entered for the plaintiff in default of defence against the 2nd defendant; declaration of constructive trust over HKD500,000; retrospective leave to serve ASOC out of jurisdiction; continuation of Mareva injunction; interest awarded.

Orders

  • Judgment entered against the 2nd defendant in default of defence for HKD500,000
  • Declaration that HKD500,000 transferred into the 2nd defendant's account is held on constructive trust for the plaintiff