LAU LAI SHAN LISA v. ZHANG QI AND OTHERS

LAU LAI SHAN LISA v. ZHANG QI AND OTHERS

The plaintiff demonstrated a serious issue to be tried on a proprietary claim over proceeds of the sale of Kidbrooke and established sufficient tracing and evidence of potential dissipation to justify an interlocutory proprietary injunction over identified funds, subject to deductions for verified payments out to solicitors, tax and legal fees; the defendants' contention of innocent service provision did not negate the prima facie proprietary claim for interlocutory relief.

Citation
[2019] HKCFI 1750
Parties
Plaintiff: P; Defendant: D1; Defendant: D2; Defendant: D3
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 July 2019
Case Number
HCA1395/2018
Procedural Posture
Civil Trusts and Property (fraud/asset Tracing) / Interlocutory Application for Proprietary Injunction / Freezing Order
Outcome
Interlocutory proprietary injunction granted in part
Legal Topics
Constructive Trust, Proprietary Injunction, Fraudulent Misrepresentation, Asset Tracing, Remedies
Source Language
EN
Trusts Equity Fraud Injunctions Company Law Constructive Trust Proprietary Injunction Fraudulent Misrepresentation +2 more

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Parties

P

Plaintiff

D1

Defendant

D2

Defendant

D3

Defendant

Procedural Posture

Civil Trusts and Property (fraud/asset Tracing) / Interlocutory Application for Proprietary Injunction / Freezing Order

Legal Issues

  1. 1 Whether plaintiff established a serious issue to be tried on a proprietary claim in respect of Kidbrooke and proceeds of sale
  2. 2 Whether defendants D2 and D3 had knowledge of or participated in the alleged fraud or were innocent service providers
  3. 3 Whether interlocutory proprietary injunction should be granted to preserve identified funds

Ratio Decidendi

The plaintiff demonstrated a serious issue to be tried on a proprietary claim over proceeds of the sale of Kidbrooke and established sufficient tracing and evidence of potential dissipation to justify an interlocutory proprietary injunction over identified funds, subject to deductions for verified payments out to solicitors, tax and legal fees; the defendants' contention of innocent service provision did not negate the prima facie proprietary claim for interlocutory relief.

Court Disposition

Interlocutory proprietary injunction granted in part

Orders

  • Interlocutory proprietary injunction restraining disposition of identified funds representing proceeds of the sale of Kidbrooke, subject to deductions for verified payments of HK$920,000, HK$684,300 and HK$201,100
  • Proceedings to continue to trial on the substantive claims