KONG FUNG RMB REMITTANCE EXCHANGE LTD v. CHAN KAM HOI t/a BAO HANG RMB MONEY EXCHANGE AND OTHERS

KONG FUNG RMB REMITTANCE EXCHANGE LTD v. CHAN KAM HOI t/a BAO HANG RMB MONEY EXCHANGE AND OTHERS

On the balance of probabilities the court found KF failed to prove an implied term requiring deposits only from BH/BY accounts or forbidding direct customer deposits without prior consent, failed to prove the Notice had been sent and received, and failed to prove HSBC's suspension was equivalent to freezing/confiscation by authorities; accordingly KF had no basis to detain HK$1.9 million and judgment was entered for the defendants on the counterclaim for HK$1.9 million with interest and costs against KF.

Citation
[2022] HKCFI 736
Parties
Plaintiff: KF; 1st Defendant: BH; 2nd Defendant: BY; 3rd Defendant: 3rd Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 March 2022
Case Number
HCA276/2016
Procedural Posture
Civil Commercial Contract / Banking / Indemnity Dispute / Judgment at Trial (high Court, Court of First Instance)
Outcome
Plaintiff's claims dismissed; judgment entered for Defendants on their counterclaim for HK$1,900,000 with interest; costs to be paid by Plaintiff to Defendants with certificate for counsel.
Legal Topics
Implied Terms, Trade Custom, Indemnity, Account Suspension Vs Freezing, Forfeiture, Costs and Interest
Source Language
EN
Contract Law Commercial Law Banking Law Criminal Proceeds / Anti Money Laundering Civil Procedure Implied Terms Trade Custom Indemnity +3 more

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Parties

KF

Plaintiff

BH

1st Defendant

BY

2nd Defendant

3rd Defendant

3rd Defendant

Procedural Posture

Civil Commercial Contract / Banking / Indemnity Dispute / Judgment at Trial (high Court, Court of First Instance)

Legal Issues

  1. 1 Whether the alleged Term was implied into the parties' Agreement
  2. 2 Whether the Notice was validly sent to and received by the Defendants and bound them
  3. 3 Whether the Defendants breached any implied term or Notice by allowing a customer to deposit HK$1.9m

Ratio Decidendi

On the balance of probabilities the court found KF failed to prove an implied term requiring deposits only from BH/BY accounts or forbidding direct customer deposits without prior consent, failed to prove the Notice had been sent and received, and failed to prove HSBC's suspension was equivalent to freezing/confiscation by authorities; accordingly KF had no basis to detain HK$1.9 million and judgment was entered for the defendants on the counterclaim for HK$1.9 million with interest and costs against KF.

Court Disposition

Plaintiff's claims dismissed; judgment entered for Defendants on their counterclaim for HK$1,900,000 with interest; costs to be paid by Plaintiff to Defendants with certificate for counsel.

Orders

  • KF to pay HK$1,900,000 to the Defendants with interest (rate and period to be determined)
  • Submissions on rate and period of interest to be filed by parties within 14 days, each limited to 2 A4 pages, font size 14, double line spacing