HUNG FAT CLEANING TRANSPORTATION CO LTD AND ANOTHER v. KWONG HING RENEWABLE RESOURCES LTD AND OTHERS

HUNG FAT CLEANING TRANSPORTATION CO LTD AND ANOTHER v. KWONG HING RENEWABLE RESOURCES LTD AND OTHERS

The court found that Lau Wai Hung breached fiduciary and contractual duties by failing to disclose conflicts and by facilitating/manufacturing spurious quotations, and that World Class dishonestly assisted in that wrongdoing; however HF affirmed the contracts (affixing labels and conduct) so rescission was not available and HF failed to prove quantifiable loss, therefore no damages or equitable compensation were awarded.

Citation
[2025] HKCFI 3161
Parties
1st Plaintiff: Hung Fat Cleaning Transportation Co Ltd; 2nd Plaintiff: ISS Facility Services Limited; 1st Defendant: Telford Environmental Development Ltd; 2nd Defendant: World Class Environmental Equipment Ltd; 3rd Defendant / Plaintiff (counterclaim): Lau Wai Hung; 1st Defendant (hca973/2020) Absent: Kwong Hing Renewable Resources Limited; 2nd Defendant (hca973/2020) Absent: Golden Hope Industrial Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 July 2025
Case Number
HCA973/2020
Procedural Posture
Consolidated Civil Commercial Actions (misrepresentation, Breach of Fiduciary Duty, Dishonest Assistance, Conspiracy) / Trial Concluded; Judgment Delivered
Outcome
Court held Lau Wai Hung liable for breach of fiduciary and contractual duties; held World Class liable for dishonest assistance and conspiracy; rescission refused because HF affirmed contracts; plaintiffs failed to prove loss so no damages or equitable compensation awarded; TED and Kwong Hing counterclaims...
Legal Topics
Misrepresentation, Breach of Fiduciary Duty, Dishonest Assistance, Conspiracy, Procurement Procedures, Rescission, Equitable Compensation, Damages, Unlawful Dismissal
Source Language
EN
Contract Tort Equity Company Law Employment Law Commercial Law Misrepresentation Breach of Fiduciary Duty +7 more

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Parties

Hung Fat Cleaning Transportation Co Ltd

1st Plaintiff

ISS Facility Services Limited

2nd Plaintiff

Telford Environmental Development Ltd

1st Defendant

World Class Environmental Equipment Ltd

2nd Defendant

Lau Wai Hung

3rd Defendant / Plaintiff (counterclaim)

Kwong Hing Renewable Resources Limited

1st Defendant (hca973/2020) Absent

Golden Hope Industrial Company Limited

2nd Defendant (hca973/2020) Absent

Procedural Posture

Consolidated Civil Commercial Actions (misrepresentation, Breach of Fiduciary Duty, Dishonest Assistance, Conspiracy) / Trial Concluded; Judgment Delivered

Legal Issues

  1. 1 Whether supplier quotations were genuine and independent under ISS Procurement Procedures
  2. 2 Whether Lau Wai Hung breached fiduciary and contractual duties by failing to disclose conflicts and by manufacturing/arranging quotations
  3. 3 Whether World Class dishonestly assisted in the breaches and participated in a conspiracy to procure award of the PO

Ratio Decidendi

The court found that Lau Wai Hung breached fiduciary and contractual duties by failing to disclose conflicts and by facilitating/manufacturing spurious quotations, and that World Class dishonestly assisted in that wrongdoing; however HF affirmed the contracts (affixing labels and conduct) so rescission was not available and HF failed to prove quantifiable loss, therefore no damages or equitable compensation were awarded.

Court Disposition

Court held Lau Wai Hung liable for breach of fiduciary and contractual duties; held World Class liable for dishonest assistance and conspiracy; rescission refused because HF affirmed contracts; plaintiffs failed to prove loss so no damages or equitable compensation awarded; TED and Kwong Hing counterclaims...

Orders

  • TED's counterclaim against HF dismissed
  • Kwong Hing's counterclaim dismissed