MICHAEL CHEN KANG HUANG AND ANOTHER v. PETER LIT MA

MICHAEL CHEN KANG HUANG AND ANOTHER v. PETER LIT MA

Defendant made fraudulent misrepresentations which induced the plaintiffs to transfer US$970,000; money obtained by fraud is subject to a constructive trust and is traceable, therefore plaintiffs are entitled to repayment of US$164,500 to the 1st plaintiff and US$805,500 to the 2nd plaintiff with interest, declarations of constructive trust and tracing up to US$970,000, and costs; defendant's denial rejected for lack of evidence.

Citation
MICHAEL CHEN KANG HUANG AND ANOTHER v. PETER LIT MA
Parties
1st Plaintiff: Michael Chen Kang Huang; 2nd Plaintiff: Euromat Worldwide Limited; Defendant: Peter Lit Ma
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 July 2009
Case Number
HCA218/2005
Procedural Posture
Action No. 218 of 2005 (civil Fraud and Proprietary Claim) / Judgment (court of First Instance)
Outcome
Judgment for the plaintiffs against the defendant
Legal Topics
Constructive Trust, Fraudulent Misrepresentation, Tracing, Mareva Injunction, Proprietary Claim Against Enjoined Assets, Declaratory Relief, Interest and Costs
Source Language
EN
Trusts Fraud Commercial Law Bankruptcy Injunctions Constructive Trust Fraudulent Misrepresentation Tracing +4 more

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Parties

Michael Chen Kang Huang

1st Plaintiff

Euromat Worldwide Limited

2nd Plaintiff

Peter Lit Ma

Defendant

Procedural Posture

Action No. 218 of 2005 (civil Fraud and Proprietary Claim) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the defendant made fraudulent misrepresentations inducing payments totalling US$970,000
  2. 2 Whether monies obtained by fraud give rise to a constructive trust and are traceable
  3. 3 Whether plaintiffs are entitled to repayment, interest and declaratory relief

Ratio Decidendi

Defendant made fraudulent misrepresentations which induced the plaintiffs to transfer US$970,000; money obtained by fraud is subject to a constructive trust and is traceable, therefore plaintiffs are entitled to repayment of US$164,500 to the 1st plaintiff and US$805,500 to the 2nd plaintiff with interest, declarations of constructive trust and tracing up to US$970,000, and costs; defendant's denial rejected for lack of evidence.

Court Disposition

Judgment for the plaintiffs against the defendant

Orders

  • Judgment for payment by the defendant to the 1st plaintiff of US$164,500
  • Interest on US$164,500 from date of writ 3 February 2005 to judgment at 1% above the best lending rate of HSBC and thereafter at judgment rate until payment