ULTIMATE PC AND MAC GALLERY LTD v. WU KA YAN DOROTHY AND OTHERS

ULTIMATE PC AND MAC GALLERY LTD v. WU KA YAN DOROTHY AND OTHERS

The court rejected the defendants' account that Lung gifted three watches and found the transfer of $662,800 unjustified; on the balance of probabilities D1, D2 and D3 conspired (unlawful means conspiracy) to appropriate P's funds and were jointly and severally liable for net damages of $157,800; the payments alleged as loans were instead repayments related to that misappropriation; D2 was liable for the Japan trip subsidy; D1 and D3's wrongful dismissal claim failed because dismissal was properly justified; P is entitled to costs but subject to a reduction due to late disclosure which warranted an adverse costs order nisi.

Citation
[2018] HKDC 915
Parties
Plaintiff (dccj 1320/2015); Defendant (dccj 2681/2015): Ultimate PC and Mac Gallery Limited; 1st Defendant (dccj 1320/2015); 1st Plaintiff (dccj 2681/2015): Wu Ka Yan Dorothy; 2nd Defendant (dccj 1320/2015): Ng King Fai; 3rd Defendant (dccj 1320/2015); 2nd Plaintiff (dccj 2681/2015): Cheng Siu Choi
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
9 August 2018
Case Number
DCCJ1320/2015
Procedural Posture
Civil (misappropriation; Employment Disputes Consolidated) / Judgment After Trial (trial Concluded)
Outcome
Plaintiff in DCCJ 1320/2015 succeeded in part; defendants D1-D3 found liable; counterclaims dismissed; DCCJ 2681/2015 dismissed.
Legal Topics
Misappropriation, Unlawful Means Conspiracy, Dishonest Assistance, Wrongful Dismissal, Long Service Payment, Payment in Lieu of Notice, Discovery (late Disclosure), Damages, Costs Order
Source Language
EN
Commercial Law Employment Law Tort Law Trusts and Fiduciary Duties Civil Procedure (discovery and Costs) Misappropriation Unlawful Means Conspiracy Dishonest Assistance +6 more

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Parties

Ultimate PC and Mac Gallery Limited

Plaintiff (dccj 1320/2015); Defendant (dccj 2681/2015)

Wu Ka Yan Dorothy

1st Defendant (dccj 1320/2015); 1st Plaintiff (dccj 2681/2015)

Ng King Fai

2nd Defendant (dccj 1320/2015)

Cheng Siu Choi

3rd Defendant (dccj 1320/2015); 2nd Plaintiff (dccj 2681/2015)

Procedural Posture

Civil (misappropriation; Employment Disputes Consolidated) / Judgment After Trial (trial Concluded)

Legal Issues

  1. 1 Whether the $662,800 transfer constituted misappropriation or an authorised reimbursement for watches
  2. 2 Whether D1-D3 were legitimate recipients of gifts or co-conspirators
  3. 3 Whether payments of $320,000 and $185,000 were loans or repayments related to the watches

Ratio Decidendi

The court rejected the defendants' account that Lung gifted three watches and found the transfer of $662,800 unjustified; on the balance of probabilities D1, D2 and D3 conspired (unlawful means conspiracy) to appropriate P's funds and were jointly and severally liable for net damages of $157,800; the payments alleged as loans were instead repayments related to that misappropriation; D2 was liable for the Japan trip subsidy; D1 and D3's wrongful dismissal claim failed because dismissal was properly justified; P is entitled to costs but subject to a reduction due to late disclosure which warranted an adverse costs order nisi.

Court Disposition

Plaintiff in DCCJ 1320/2015 succeeded in part; defendants D1-D3 found liable; counterclaims dismissed; DCCJ 2681/2015 dismissed.

Orders

  • D1 to D3 jointly and severally liable to pay plaintiff HKD 157800 in damages
  • Counterclaim of D1 and D2 dismissed