MISSION MARKETING LTD v. CHAN YUET FOON AND OTHERS

MISSION MARKETING LTD v. CHAN YUET FOON AND OTHERS

The court found the cockloft/false ceiling and the trench were unauthorized building works and there was a real risk of enforcement such that the Defendants could not give good title; Plaintiff was entitled to rescind the agreement and recover the deposit; the Third Party was not liable because the Defendants' loss would have occurred irrespective of any breach by the Third Party.

Citation
[2020] HKCFI 910
Parties
Plaintiff: Plaintiff; Defendants: Defendants; Third Party: Third Party (Defendants' former solicitors)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 May 2020
Case Number
HCMP258/2014
Procedural Posture
HCMP 258/2014 Miscellaneous Proceedings, High Court, Court of First Instance / Judgment
Outcome
Formal Agreement rescinded in favour of Plaintiff; Defendants found unable to give good title; Third Party claim dismissed.
Legal Topics
Unauthorized Building Works, Good Title, Rescission, Damages, Contribution, Solicitor Negligence
Source Language
EN
Property Law Building Law Conveyancing Contract Professional Negligence Unauthorized Building Works Good Title Rescission +3 more

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Parties

Plaintiff

Plaintiff

Defendants

Defendants

Third Party (Defendants' former solicitors)

Third Party

Procedural Posture

HCMP 258/2014 Miscellaneous Proceedings, High Court, Court of First Instance / Judgment

Legal Issues

  1. 1 Whether the Defendants gave good title to the Property
  2. 2 Whether the questioned works (cockloft/false ceiling, trench, shop extension) were unauthorized building works (UBWs)
  3. 3 Whether there was a real risk of enforcement by the Building Authority rendering title defeasible

Ratio Decidendi

The court found the cockloft/false ceiling and the trench were unauthorized building works and there was a real risk of enforcement such that the Defendants could not give good title; Plaintiff was entitled to rescind the agreement and recover the deposit; the Third Party was not liable because the Defendants' loss would have occurred irrespective of any breach by the Third Party.

Court Disposition

Formal Agreement rescinded in favour of Plaintiff; Defendants found unable to give good title; Third Party claim dismissed.

Orders

  • Rescind the Formal Agreement between the parties
  • Defendants to return deposits of HK$2,480,000 to the Plaintiff