LEUNG WAI FONG AND ANOTHER v. CHO LI YUEN

LEUNG WAI FONG AND ANOTHER v. CHO LI YUEN

The court found on the evidence that the three sisters entered a joint investment agreement on 7 May 1995 and each held a one-third interest and was jointly liable to contribute one-third to the mortgage; the deceased's estate therefore holds a one-third share subject to the legal charge and is liable to contribute one-third of mortgage repayments (with agreed rental credit), and an order for sale under s6 Partition Ordinance was appropriate; sale proceeds are to redeem the mortgage, repay the mother's loan, and any shortfall between the balance and the mother's loan is to be borne equally by the plaintiffs and the deceased's estate; deceased's estate was ordered to pay HKD 250,136.64 to...

Citation
LEUNG WAI FONG AND ANOTHER v. CHO LI YUEN
Parties
1st Plaintiff: Leung Wai Fong; 2nd Plaintiff: Leung Wai Yi; Defendant / Administrator: Cho Li Yuen (administrator of the estate of Leung Wai Kwan, deceased)
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
26 October 2006
Case Number
DCCJ4222/2004
Procedural Posture
Civil Action (mortgage/partition) / Judgment at Trial (district Court)
Outcome
Order for sale under s6 Partition Ordinance; judgment for plaintiffs on contribution claims against the deceased's estate; costs to follow the event with defendant to pay; order nisi to be made absolute if parties fail to apply within 14 days.
Legal Topics
Mortgage Contribution, Enforceability of Family/domestic Agreements Against Estate, Order for Sale Under Partition Ordinance S6, Administrator's Duties, Distribution of Sale Proceeds
Source Language
EN
Property Law Probate and Administration Contract Law Partition Mortgage Contribution Enforceability of Family/domestic Agreements Against Estate Order for Sale Under Partition Ordinance S6 Administrator's Duties +1 more

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Parties

Leung Wai Fong

1st Plaintiff

Leung Wai Yi

2nd Plaintiff

Cho Li Yuen (administrator of the estate of Leung Wai Kwan, deceased)

Defendant / Administrator

Procedural Posture

Civil Action (mortgage/partition) / Judgment at Trial (district Court)

Legal Issues

  1. 1 Whether there was an enforceable agreement dated 7 May 1995 between the three sisters to purchase the property for investment
  2. 2 Whether the three sisters agreed each to be responsible for one-third of the mortgage repayments
  3. 3 Whether the deceased's obligation to contribute continued to bind her estate after death and whether the administrator is liable for post-death contributions

Ratio Decidendi

The court found on the evidence that the three sisters entered a joint investment agreement on 7 May 1995 and each held a one-third interest and was jointly liable to contribute one-third to the mortgage; the deceased's estate therefore holds a one-third share subject to the legal charge and is liable to contribute one-third of mortgage repayments (with agreed rental credit), and an order for sale under s6 Partition Ordinance was appropriate; sale proceeds are to redeem the mortgage, repay the mother's loan, and any shortfall between the balance and the mother's loan is to be borne equally by the plaintiffs and the deceased's estate; deceased's estate was ordered to pay HKD 250,136.64 to...

Court Disposition

Order for sale under s6 Partition Ordinance; judgment for plaintiffs on contribution claims against the deceased's estate; costs to follow the event with defendant to pay; order nisi to be made absolute if parties fail to apply within 14 days.

Orders

  • Order for sale of the property (Lai Kwan Court unit) pursuant to Partition Ordinance s6
  • Plaintiffs permitted to bid at the sale