Inter Maritime Management Ltd. and Another v. Nicolas Peter Petroyannis

Inter Maritime Management Ltd. and Another v. Nicolas Peter Petroyannis

Judge granted leave to amend to include allegations (new paragraphs 12A-E) alleging constructive trust/secret commissions so plaintiffs can argue Lister v Stubbs is wrong and thus avoid statute-bar, but refused leave to amend to include the Garden State indemnity claim (paras 14A-C) because the cause of action for...

Source-derived case information.

Citation
Inter Maritime Management Ltd. and Another v. Nicolas Peter Petroyannis
Parties
1st Plaintiff: Inter Maritime Management Limited; 2nd Plaintiff: Inter Maritime Management S.A.; 3rd Plaintiff (proposed): Proposed 3rd Plaintiff (Liberian corporation); 4th Plaintiff (proposed): Proposed 4th Plaintiff (Liberian corporation); Defendant: Nicolas Peter Petroyannis; 2nd Defendant (proposed): Proposed 2nd Defendant; 3rd Defendant (proposed): Proposed 3rd Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 July 1993
Case Number
HCA890/1988
Procedural Posture
Civil: Breach of Fiduciary Duty/constructive Trust/indemnity/limitation / Interlocutory Appeal Against Master's Refusal/partial Refusal to Grant Leave to Amend Statement of Claim
Outcome
Appeal allowed in part and dismissed in part: leave granted to amend to add constructive trust/secret commission allegations (paras 12A-E) and consequential amendments and to add 3rd/4th plaintiffs and 2nd/3rd defendants; leave refused to amend to include Garden State indemnity claim (paras 14A-C).
Legal Topics
Constructive Trust, Secret Commissions and Bribes, Statute of Limitations, Leave to Amend Pleadings, Indemnity Accrual, Discovery and Concealment
Source Language
en
Equity Trusts Contract Civil Procedure Limitation Law Constructive Trust Secret Commissions and Bribes Statute of Limitations +3 more

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Parties

Inter Maritime Management Limited

1st Plaintiff

Inter Maritime Management S.A.

2nd Plaintiff

Proposed 3rd Plaintiff (Liberian corporation)

3rd Plaintiff (proposed)

Proposed 4th Plaintiff (Liberian corporation)

4th Plaintiff (proposed)

Nicolas Peter Petroyannis

Defendant

Proposed 2nd Defendant

2nd Defendant (proposed)

Proposed 3rd Defendant

3rd Defendant (proposed)

Procedural Posture

Civil: Breach of Fiduciary Duty/constructive Trust/indemnity/limitation / Interlocutory Appeal Against Master's Refusal/partial Refusal to Grant Leave to Amend Statement of Claim

Legal Issues

  1. 1 Whether claims for secret commissions can be based on a constructive trust and thus avoid limitation under Limitation Ordinance s.20
  2. 2 Whether Lister v Stubbs is binding or should be departed from and whether leave should be given to argue it is wrong
  3. 3 Whether the plaintiffs can rely on s.26 (discovery) of the Limitation Ordinance

Ratio Decidendi

Judge granted leave to amend to include allegations (new paragraphs 12A-E) alleging constructive trust/secret commissions so plaintiffs can argue Lister v Stubbs is wrong and thus avoid statute-bar, but refused leave to amend to include the Garden State indemnity claim (paras 14A-C) because the cause of action for indemnity accrued at the date of the defendant's breach (14 June 1986) and is therefore statute-barred; additions of proposed plaintiffs and defendants were permitted; discretionary decisions on pleadings and amendment turned on whether claim could arguably evade limitation if based on trust and on settled accrual rules for indemnity claims.

Court Disposition

Appeal allowed in part and dismissed in part: leave granted to amend to add constructive trust/secret commission allegations (paras 12A-E) and consequential amendments and to add 3rd/4th plaintiffs and 2nd/3rd defendants; leave refused to amend to include Garden State indemnity claim (paras 14A-C).

Orders

  • Grant leave to amend Statement of Claim to include new paragraphs 12A-E and necessary consequential amendments
  • Refuse leave to amend to include paragraphs 14A-C (Garden State indemnity claim)