YIFUNG PROPERTIES LTD AND OTHERS v. MANCHESTER SECURITIES CORP AND OTHERS

YIFUNG PROPERTIES LTD AND OTHERS v. MANCHESTER SECURITIES CORP AND OTHERS

The court refused all three applications because the judge below correctly applied the 'serious issue to be tried' test and was entitled to rely on contemporaneous documents to conclude the plaintiffs' Estoppel, MLO and Agency points were demurrable on their face or plainly unarguable; the extension of...

Source-derived case information.

Citation
YIFUNG PROPERTIES LTD AND OTHERS v. MANCHESTER SECURITIES CORP AND OTHERS
Parties
1st Plaintiff (hcmp 461/463): Yifung Properties Limited; 2nd Plaintiff (hcmp 461/463): Wonder Earn Group Limited; 3rd Plaintiff (hcmp 461/463): Capital Metro Group Limited; Defendant / Mortgagee (hcmp 461/463): Manchester Securities Corp; 2nd Defendant / Receiver (hcmp 461/463): Nicholas James Gronow; 3rd Defendant / Receiver (hcmp 461/463): Fok Hei Yu; 4th Defendant / Agent (hcmp 461/463): Elliott Advisors (HK) Limited; Plaintiff (hcmp 462): Yifung Developments Limited; Defendant / Former Director (hcmp 462): Liu Chi Keung Ricky; 2nd Defendant / Former Director (hcmp 462): Ho Sing Chung Robert; 3rd Defendant / Former Director (hcmp 462): Choy Siu Fung Rebecca
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 June 2015
Case Number
HCMP461/2015
Procedural Posture
Court of Appeal Miscellaneous Proceedings (renewed Applications for Leave to Appeal/extension of Time Following HCA Decisions) / Applications for Leave to Appeal and Extension of Time; Hearing on Merits of Leave and Costs Assessment
Outcome
All three applications refused: leave to appeal refused in HCMP 461/2015 and HCMP 462/2015; extension of time to file notice of appeal refused in HCMP 463/2015; costs awarded to successful parties on gross sum assessments.
Legal Topics
Interlocutory Injunction, Leave to Appeal, Extension of Time to Appeal, Strike Out/amendment of Writ, Estoppel, Agency and Duties of Receivers, Receivership, Calculation of Effective Interest Under Money Lenders Ordinance, Reopening Transactions Under MLO
Source Language
en
Civil Procedure Equity Commercial Law Mortgage Law Enforcement of Security Statutory Interpretation Costs Interlocutory Injunction +8 more

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Parties

Yifung Properties Limited

1st Plaintiff (hcmp 461/463)

Wonder Earn Group Limited

2nd Plaintiff (hcmp 461/463)

Capital Metro Group Limited

3rd Plaintiff (hcmp 461/463)

Manchester Securities Corp

Defendant / Mortgagee (hcmp 461/463)

Nicholas James Gronow

2nd Defendant / Receiver (hcmp 461/463)

Fok Hei Yu

3rd Defendant / Receiver (hcmp 461/463)

Elliott Advisors (HK) Limited

4th Defendant / Agent (hcmp 461/463)

Yifung Developments Limited

Plaintiff (hcmp 462)

Liu Chi Keung Ricky

Defendant / Former Director (hcmp 462)

Ho Sing Chung Robert

2nd Defendant / Former Director (hcmp 462)

Choy Siu Fung Rebecca

3rd Defendant / Former Director (hcmp 462)

Procedural Posture

Court of Appeal Miscellaneous Proceedings (renewed Applications for Leave to Appeal/extension of Time Following HCA Decisions) / Applications for Leave to Appeal and Extension of Time; Hearing on Merits of Leave and Costs Assessment

  1. 1 Whether there was a serious issue to be tried on the Estoppel Point (oral assurance)
  2. 2 Whether the facility agreement and IRD were void/unenforceable under Money Lenders Ordinance ss 24/25 (the MLO Point)
  3. 3 Whether the receivers breached duties to mortgagors/agency duties (the Agency Point)

Ratio Decidendi

The court refused all three applications because the judge below correctly applied the 'serious issue to be tried' test and was entitled to rely on contemporaneous documents to conclude the plaintiffs' Estoppel, MLO and Agency points were demurrable on their face or plainly unarguable; the extension of time/amendment had unjustified delay and no real prospect of success; costs awarded on a substantially reduced gross sum basis.

Court Disposition

All three applications refused: leave to appeal refused in HCMP 461/2015 and HCMP 462/2015; extension of time to file notice of appeal refused in HCMP 463/2015; costs awarded to successful parties on gross sum assessments.

Orders

  • HCMP 461/2015: leave to appeal refused; costs awarded to 1st & 4th defendants HKD 90,000 and to 2nd & 3rd defendants HKD 75,000
  • HCMP 462/2015: leave to appeal refused; costs awarded to plaintiff HKD 75,000