LEUNG CHING WAI v. LI YUN LIM The Sole Executor of the Estate of Ng Bo Chuen, Deceased AND ANOTHER

LEUNG CHING WAI v. LI YUN LIM The Sole Executor of the Estate of Ng Bo Chuen, Deceased AND ANOTHER

The court found on the facts that plaintiff made substantial monetary contributions (renovation set-off and mortgage repayments) giving rise to a purchase money resulting trust for 28.608% beneficial interest despite legal title being in the deceased grandmother and later vested in defendant; the express/common intention CICT, although established on the facts, was rejected as ex facie contrary to public policy and refused applying the Patel/Monat range of factors because the resulting trust provided an adequate, proportionate remedy and denial of CICT better serves public policy. The resulting trust was not barred by illegality.

Citation
[2023] HKDC 459
Parties
Plaintiff: Leung Ching Wai; 1st Defendant the Sole Executor of the Estate of Ng Bo Chuen, Deceased: Li Yun Lim; 2nd Defendant: Li Yun Lim
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
18 July 2023
Case Number
DCCJ4851/2019
Procedural Posture
Civil Action Property/trust Dispute / Judgment (district Court)
Outcome
Declaration granted that deceased grandmother (and since assent the defendant) held 28.608% beneficial interest on a purchase money resulting trust in favour of the plaintiff; common intention constructive trust claim dismissed; no order made on unjust enrichment claim at this stage.
Legal Topics
Common Intention Constructive Trust, Purchase Money Resulting Trust, Unjust Enrichment, Illegality/ex Turpi Causa, Housing Allocation/government Subsidy Abuse, Application of Patel V Mirza/monat Range of Factors
Source Language
EN
Equity and Trusts Property Law Restitution/unjust Enrichment Public Policy/illegality Common Intention Constructive Trust Purchase Money Resulting Trust Unjust Enrichment Illegality/ex Turpi Causa +2 more

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Parties

Leung Ching Wai

Plaintiff

Li Yun Lim

1st Defendant the Sole Executor of the Estate of Ng Bo Chuen, Deceased

Li Yun Lim

2nd Defendant

Procedural Posture

Civil Action Property/trust Dispute / Judgment (district Court)

Legal Issues

  1. 1 Whether the court should consider illegality although illegality was not pleaded by defendants
  2. 2 Whether the common intention constructive trust (CICT) is barred by illegality/public policy
  3. 3 Application of the Patel v Mirza/Monat range of factors to a CICT claim arising from misuse of a Green Form housing nomination

Ratio Decidendi

The court found on the facts that plaintiff made substantial monetary contributions (renovation set-off and mortgage repayments) giving rise to a purchase money resulting trust for 28.608% beneficial interest despite legal title being in the deceased grandmother and later vested in defendant; the express/common intention CICT, although established on the facts, was rejected as ex facie contrary to public policy and refused applying the Patel/Monat range of factors because the resulting trust provided an adequate, proportionate remedy and denial of CICT better serves public policy. The resulting trust was not barred by illegality.

Court Disposition

Declaration granted that deceased grandmother (and since assent the defendant) held 28.608% beneficial interest on a purchase money resulting trust in favour of the plaintiff; common intention constructive trust claim dismissed; no order made on unjust enrichment claim at this stage.

Orders

  • Declaration that the deceased grandmother and, since 2 May 2019, the 2nd defendant hold 28.608% of the beneficial interest in the Flat on a purchase money resulting trust in favour of the Plaintiff
  • The Plaintiff's claim in common intention constructive trust is dismissed