LONG YEAR DEVELOPMENT LTD. AND OTHERS v. TSE FUK MAN, NORMAN AND OTHERS

LONG YEAR DEVELOPMENT LTD. AND OTHERS v. TSE FUK MAN, NORMAN AND OTHERS

Third Parties liable under Misrepresentation Ordinance s.3(1) because the representative (Madam Chan) did not have reasonable grounds for her belief that the covered car park was the one conveyed; measure of damages under s.3(1) equals deceit (tortious measure) so deposit and legal costs flowing from the...

Source-derived case information.

Citation
LONG YEAR DEVELOPMENT LTD. AND OTHERS v. TSE FUK MAN, NORMAN AND OTHERS
Parties
Plaintiff: Long Year Development Limited; 1st Defendant: Tse Fuk Man, Norman; 2nd Defendant: Yu Bick Ling; 1st Third Party: Ho Shiu Kwan Tony; 2nd Third Party: Chan Wai Sheung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 July 1991
Case Number
HCA3959/1989
Procedural Posture
Misrepresentation / Judgment After Trial
Outcome
Judgment for Defendants on third party claim; Third Parties held liable under Misrepresentation Ordinance s.3(1)
Legal Topics
Misrepresentation, Deceit, Damages, Rescission, Measure of Damages, Loss of Profits, Third Party Claim
Source Language
en
Contract Tort Property Misrepresentation Deceit Damages Rescission Measure of Damages +2 more

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Parties

Long Year Development Limited

Plaintiff

Tse Fuk Man, Norman

1st Defendant

Yu Bick Ling

2nd Defendant

Ho Shiu Kwan Tony

1st Third Party

Chan Wai Sheung

2nd Third Party

Procedural Posture

Misrepresentation / Judgment After Trial

Legal Issues

  1. 1 Whether a misrepresentation was made as to which car parking space was sold
  2. 2 Whether the misrepresentation was fraudulent or fell within Misrepresentation Ordinance s.3(1)
  3. 3 Whether the maker had reasonable grounds to believe the representation

Ratio Decidendi

Third Parties liable under Misrepresentation Ordinance s.3(1) because the representative (Madam Chan) did not have reasonable grounds for her belief that the covered car park was the one conveyed; measure of damages under s.3(1) equals deceit (tortious measure) so deposit and legal costs flowing from the misrepresentation are recoverable, but speculative resale profits are not recoverable absent evidence of a substitute profitable transaction.

Court Disposition

Judgment for Defendants on third party claim; Third Parties held liable under Misrepresentation Ordinance s.3(1)

Orders

  • 1st and 2nd Third Party to pay the Defendants HKD 180900 with interest at 1% over prime from date of third party notice
  • 1st and 2nd Third Party to pay the Defendants HKD 100000 and the Defendants' costs in the main action to be assessed by taxation