HKMC MORTGAGE MANAGEMENT LTD v. TSE WING IP AND OTHERS

HKMC MORTGAGE MANAGEMENT LTD v. TSE WING IP AND OTHERS

The court held that a purchaser's equitable lien is an equitable remedy intended to do justice between the parties and is not in principle confined to securing the deposit; accordingly, a purchaser's equitable lien may be granted to cover damages for loss of profits if the court finds it just in all the...

Source-derived case information.

Citation
[2019] HKCFI 1721
Parties
Plaintiff: Mortgagee; 1st Defendant: 1st Defendant; 2nd Defendant: 2nd Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 July 2019
Case Number
HCMP348/2014
Procedural Posture
Miscellaneous Proceedings / Judgment
Outcome
Held that a purchaser's equitable lien can be extended to cover damages for loss of profits where justice requires; claim allowed to proceed rather than struck out.
Legal Topics
Equitable Lien, Purchaser's Lien, Damages for Loss of Profits, Res Judicata, Issue Estoppel, Title Defects, Mortgagee Sale Proceeds
Source Language
en
Property Law Equity Mortgage Civil Procedure Equitable Lien Purchaser's Lien Damages for Loss of Profits Res Judicata +3 more

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Parties

Mortgagee

Plaintiff

1st Defendant

1st Defendant

2nd Defendant

2nd Defendant

Procedural Posture

Miscellaneous Proceedings / Judgment

Legal Issues

  1. 1 Who has the better claim to the balance of proceeds from a mortgagee sale
  2. 2 Whether res judicata or issue estoppel bars claims to the balance of proceeds
  3. 3 Whether an equitable/purchaser's lien can extend beyond deposit to cover damages for loss of profits

Ratio Decidendi

The court held that a purchaser's equitable lien is an equitable remedy intended to do justice between the parties and is not in principle confined to securing the deposit; accordingly, a purchaser's equitable lien may be granted to cover damages for loss of profits if the court finds it just in all the circumstances, and the claim should not be struck out solely on the basis that damages are sought.

Court Disposition

Held that a purchaser's equitable lien can be extended to cover damages for loss of profits where justice requires; claim allowed to proceed rather than struck out.

Orders

  • Claim for equitable lien to proceed; leave granted to pursue claim for damages for loss of profits under an equitable lien