FOSHAN CITY COMMERCIAL BANK v. CHEN YONG YI AND ANOTHER

FOSHAN CITY COMMERCIAL BANK v. CHEN YONG YI AND ANOTHER

The court held there was no valid ground to oppose the applications: the consent summons did not require a specific form of notice and the summons for payment sufficed, the plaintiffs' equitable claims did not by themselves justify withholding payment absent an injunction, and land searches showed the relevant writs were not registered as lis pendens against the resumed lots; accordingly the money should be paid out and the lis pendens vacated.

Citation
FOSHAN CITY COMMERCIAL BANK v. CHEN YONG YI AND ANOTHER
Parties
Plaintiffs: plaintiffs; Defendants: defendants
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 April 2002
Case Number
HCA2202/1999
Procedural Posture
Civil Litigation / Applications for Payment Out of Monies Paid Into Court and Vacating Lis Pendens; Hearing and Reasons Delivered
Outcome
Applications granted in terms of the summonses; court ordered payment out of the compensation and vacated lis pendens
Legal Topics
Lis Pendens, Payment Out of Funds Paid Into Court, Mareva Injunction, Security for Costs, Resulting Trust/equitable Mortgage, Land Resumption Compensation
Source Language
EN
Civil Procedure Equity Property Law Land Law Lis Pendens Payment Out of Funds Paid Into Court Mareva Injunction Security for Costs +2 more

Case Brief

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Parties

plaintiffs

Plaintiffs

defendants

Defendants

Procedural Posture

Civil Litigation / Applications for Payment Out of Monies Paid Into Court and Vacating Lis Pendens; Hearing and Reasons Delivered

Legal Issues

  1. 1 Whether the balance of compensation paid into court should be paid out to defendants despite plaintiffs' proprietary claims
  2. 2 Whether the consent summons clause requiring written notice precluded the defendants' application for payment out
  3. 3 Whether plaintiffs' asserted equitable proprietary interests (resulting trust/equitable mortgage/lien) sufficed to block payment out absent an injunction

Ratio Decidendi

The court held there was no valid ground to oppose the applications: the consent summons did not require a specific form of notice and the summons for payment sufficed, the plaintiffs' equitable claims did not by themselves justify withholding payment absent an injunction, and land searches showed the relevant writs were not registered as lis pendens against the resumed lots; accordingly the money should be paid out and the lis pendens vacated.

Court Disposition

Applications granted in terms of the summonses; court ordered payment out of the compensation and vacated lis pendens

Orders

  • Balance of $1,384,830.00 paid out of court to the defendants
  • Lis pendens in HCA 15922 vacated