LIN ZHEN v. WANG KEE CONSTRUCTION CO LTD AND ANOTHER

LIN ZHEN v. WANG KEE CONSTRUCTION CO LTD AND ANOTHER

The court refused to appoint a receiver and made no order on the plaintiff's summons because the contract works were proceeding without disruption, plaintiff's evidence of irregularity was minimal relative to a $28 million contract, appointment of a receiver or injunction would likely disrupt completion and impose...

Source-derived case information.

Citation
LIN ZHEN v. WANG KEE CONSTRUCTION CO LTD AND ANOTHER
Parties
Plaintiff: Lin Zhen; 1st Defendant: Wang Kee Construction Company Limited; 2nd Defendant: Yu Wang
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 January 2008
Case Number
HCA2269/2007
Procedural Posture
Construction Contract Dispute / Interlocutory Hearing (application for Receiver and Injunction)
Outcome
No order is made on the plaintiff's summons dated 17 November 2007 (application for receiver and injunction refused)
Legal Topics
Appointment of Receiver, Injunction, Partnership Dispute, Contract Performance, Accounting
Source Language
en
Civil Procedure Equity Construction Law Company Law Appointment of Receiver Injunction Partnership Dispute Contract Performance +1 more

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Parties

Lin Zhen

Plaintiff

Wang Kee Construction Company Limited

1st Defendant

Yu Wang

2nd Defendant

Procedural Posture

Construction Contract Dispute / Interlocutory Hearing (application for Receiver and Injunction)

Legal Issues

  1. 1 Whether a receiver should be appointed to manage the contract bank account
  2. 2 Whether an injunction should restrain defendants from withdrawing funds except for necessary contract expenses
  3. 3 Whether plaintiff demonstrated sufficient evidence of misappropriation or risk to justify intrusive relief

Ratio Decidendi

The court refused to appoint a receiver and made no order on the plaintiff's summons because the contract works were proceeding without disruption, plaintiff's evidence of irregularity was minimal relative to a $28 million contract, appointment of a receiver or injunction would likely disrupt completion and impose risk and cost (and plaintiff gave no cross-undertaking as to damages), and the defendants' undertaking to use the account solely for necessary contract expenses together with monthly financial statements sufficiently protected the plaintiff's interests.

Court Disposition

No order is made on the plaintiff's summons dated 17 November 2007 (application for receiver and injunction refused)

Orders

  • Upon the 2nd defendant's undertaking on his own behalf and on behalf of the 1st defendant: utilize monies in bank account no. 043-506-00047055 with Nanyang Commercial Bank solely for reasonable and necessary costs arising out of construction contract HK16/03 between the 1st defendant and the Government of the HKSAR
  • Prepare and provide to the plaintiff every month until completion (commencing with January 2008) a financial statement particularizing all transactions in the said bank account and annexing copy invoices in support, save and except an allowance of HKD 5,000 per month under the heading 'petty cash'