LEE PO SAN v. BERMUDA TRUST (HONG KONG) LTD

LEE PO SAN v. BERMUDA TRUST (HONG KONG) LTD

The court accepted the plaintiff's evidence that the deceased repeatedly and expressly promised the Flat to her, demonstrated title and delivered the safe deposit key, and that she in reliance on those promises altered her position and suffered detriment (leaving a profitable business, renovating the Flat, providing care); accordingly a constructive trust (and alternatively proprietary estoppel) was established in her favour and the defendant (trustee) must not obtain possession but must transfer the title to the plaintiff.

Citation
LEE PO SAN v. BERMUDA TRUST (HONG KONG) LTD
Parties
Plaintiff: Lee Po San; Defendant (trustee/executor): Bermuda Trust (Hong Kong) Limited (formerly The Chartered Bank Hong Kong Trustee Limited); Deceased: Fung Shing Ting (deceased)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 July 1997
Case Number
HCMP355/1994
Procedural Posture
Civil Trust and Property (probate Consequences) / Trial Judgment (first Instance)
Outcome
Judgment for the Plaintiff; constructive trust and proprietary estoppel established in favour of the Plaintiff in respect of the Flat
Legal Topics
Constructive Trust, Proprietary Estoppel, Mental Capacity to Testify, Will Validity, Possession, Mesne Profits
Source Language
EN
Trusts Property Equity Probate Family Law Constructive Trust Proprietary Estoppel Mental Capacity to Testify +3 more

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Parties

Lee Po San

Plaintiff

Bermuda Trust (Hong Kong) Limited (formerly The Chartered Bank Hong Kong Trustee Limited)

Defendant (trustee/executor)

Fung Shing Ting (deceased)

Deceased

Procedural Posture

Civil Trust and Property (probate Consequences) / Trial Judgment (first Instance)

Legal Issues

  1. 1 Whether a constructive trust arose in favour of the plaintiff over the Flat
  2. 2 Whether proprietary estoppel prevents the defendant (estate/trustee) from asserting legal title
  3. 3 Whether the plaintiff was mentally competent to give evidence

Ratio Decidendi

The court accepted the plaintiff's evidence that the deceased repeatedly and expressly promised the Flat to her, demonstrated title and delivered the safe deposit key, and that she in reliance on those promises altered her position and suffered detriment (leaving a profitable business, renovating the Flat, providing care); accordingly a constructive trust (and alternatively proprietary estoppel) was established in her favour and the defendant (trustee) must not obtain possession but must transfer the title to the plaintiff.

Court Disposition

Judgment for the Plaintiff; constructive trust and proprietary estoppel established in favour of the Plaintiff in respect of the Flat

Orders

  • Declare that the Plaintiff is the beneficial owner of Flat A on the 7th Floor of Yee Fung Building, I Village Road, Happy Valley
  • Order that the Defendant (trustee/executor) is not entitled to possession of the Flat and is obliged to transfer title of the Flat to the Plaintiff