KEEP POINT DEVELOPMENT LTD. v. CHAN CHI YIM AND ANOTHER

KEEP POINT DEVELOPMENT LTD. v. CHAN CHI YIM AND ANOTHER

The court found that Full Country was liable to the defendants for breach of contract and that Yuen Sung & Co. breached their duty of care to the defendants by failing adequately to warn and advise of the legal risks (notably the effect of non-registration and the scope of charging powers); accordingly the defendants are entitled to an indemnity and damages against the third parties; damages are to be assessed on the basis that, had proper advice been given, the defendants would not have proceeded at all, so loss is the value of their old units less amounts actually received, plus reimbursable stamp duty and specified payments, with interest.

Citation
KEEP POINT DEVELOPMENT LTD. v. CHAN CHI YIM AND ANOTHER
Parties
Plaintiff: Keep Point Development Limited; Defendants: Chan Chi Yim & Ngai Yuet Fong & 62 other defendants; 1st Third Party (in Liquidation): Full Country Development Limited; 2nd Third Party (a Firm of Solicitors): Yuen Sung & Co.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 June 2000
Case Number
HCMP6550/1998
Procedural Posture
Civil Third Party Proceedings (property / Professional Negligence) / Judgment (court of First Instance)
Outcome
Judgment for the defendants against Full Country Development Ltd for damages and costs; judgment for the defendants against Yuen Sung & Co. for breach of duty and damages/indemnity to be assessed; costs to follow the event and certain costs adjustments ordered; assessment of damages and detailed figures to be agreed...
Legal Topics
Option Agreements, Non Registration of Interests, Solicitor's Duty of Care, Indemnity Against Third Party, Measure of Damages, Registration at Land Registry, Assignment and Mortgages
Source Language
EN
Property Law Conveyancing Land Registration Professional Negligence Contract Law Insolvency/company Law Option Agreements Non Registration of Interests +5 more

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Parties

Keep Point Development Limited

Plaintiff

Chan Chi Yim & Ngai Yuet Fong & 62 other defendants

Defendants

Full Country Development Limited

1st Third Party (in Liquidation)

Yuen Sung & Co.

2nd Third Party (a Firm of Solicitors)

Procedural Posture

Civil Third Party Proceedings (property / Professional Negligence) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the option agreements were void or unenforceable against subsequent purchaser under the Land Registration Ordinance and due to non-registration
  2. 2 Whether solicitors Yuen Sung & Co. breached their duty of care to the defendants by failing to warn and advise of the risks (in particular non-registration and unlimited legal charges)
  3. 3 Liability of Full Country Development Ltd for breach of contract and damages

Ratio Decidendi

The court found that Full Country was liable to the defendants for breach of contract and that Yuen Sung & Co. breached their duty of care to the defendants by failing adequately to warn and advise of the legal risks (notably the effect of non-registration and the scope of charging powers); accordingly the defendants are entitled to an indemnity and damages against the third parties; damages are to be assessed on the basis that, had proper advice been given, the defendants would not have proceeded at all, so loss is the value of their old units less amounts actually received, plus reimbursable stamp duty and specified payments, with interest.

Court Disposition

Judgment for the defendants against Full Country Development Ltd for damages and costs; judgment for the defendants against Yuen Sung & Co. for breach of duty and damages/indemnity to be assessed; costs to follow the event and certain costs adjustments ordered; assessment of damages and detailed figures to be agreed...

Orders

  • Judgment entered for the defendants against Full Country Development Ltd for damages to be assessed and for costs
  • Judgment entered for the defendants against Yuen Sung & Co. for damages (indemnity) to be assessed on the basis set out in judgment