BARNES & NOBLE PROPERTY MANAGEMENT LTD. AND ANOTHER v. HODSUN LTD.

BARNES & NOBLE PROPERTY MANAGEMENT LTD. AND ANOTHER v. HODSUN LTD.

Sections 8(2)(a) and 22(3) do not negate an individual owner's liability or prevent the manager suing a defaulting owner; Clause 2(c) validly empowers the manager to sue as agent for the owners/the corporation and recovered sums are held as trustee monies under Clause 3(a); section 16 does not apply to individual liability for management fees; therefore the respondent's preliminary challenge fails and the application is dismissed.

Citation
BARNES & NOBLE PROPERTY MANAGEMENT LTD. AND ANOTHER v. HODSUN LTD.
Parties
1st Applicant: Barnes & Noble Property Management Ltd.; 2nd Applicant: Billion Terrace Management Ltd.; Respondent: Hodsun Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
8 March 2000
Case Number
LDBM355/1999
Procedural Posture
Building Management Application No. LDBM 355 of 1999 (lands Tribunal) / Decision on Preliminary Point (interlocutory Summons)
Outcome
Respondent's application dismissed
Legal Topics
Deed of Mutual Covenant, Building Management Ordinance, Liability of Owners, Manager's Right to Sue, Agency and Trust, Recovery of Management Fees, Sections 8(2)(a), 16, 18, 22(3) BMO
Source Language
EN
Building Management Property Law Corporate Law Civil Procedure Deed of Mutual Covenant Building Management Ordinance Liability of Owners Manager's Right to Sue +3 more

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Parties

Barnes & Noble Property Management Ltd.

1st Applicant

Billion Terrace Management Ltd.

2nd Applicant

Hodsun Limited

Respondent

Procedural Posture

Building Management Application No. LDBM 355 of 1999 (lands Tribunal) / Decision on Preliminary Point (interlocutory Summons)

Legal Issues

  1. 1 Whether Clause 2(c) of the Deed of Mutual Covenant is void ab initio in view of s22(3) and related provisions of the Building Management Ordinance
  2. 2 Whether an individual owner can be sued for management fees or liability is enforceable only against the corporation
  3. 3 Whether the manager may sue a defaulting owner as agent for the owners/the corporation

Ratio Decidendi

Sections 8(2)(a) and 22(3) do not negate an individual owner's liability or prevent the manager suing a defaulting owner; Clause 2(c) validly empowers the manager to sue as agent for the owners/the corporation and recovered sums are held as trustee monies under Clause 3(a); section 16 does not apply to individual liability for management fees; therefore the respondent's preliminary challenge fails and the application is dismissed.

Court Disposition

Respondent's application dismissed

Orders

  • Application dismissed
  • Order nisi for costs in favour of the Applicants for the hearing of this summons to be made absolute in 14 days and to be taxed if not agreed