MA NAM v. PEACEFUL CONSULTANTS LTD AND ANOTHER

MA NAM v. PEACEFUL CONSULTANTS LTD AND ANOTHER

Court accepted defendants' evidence that the HK$3,000,000 was a loan and the property was transferred to the 1st defendant as security, rejected the plaintiff's trust claim and claim against the 2nd defendant for knowing assistance, and ordered interest at bank best lending rate plus 2% from end of initial three-month period to 11 June 2008, with parties to calculate the sum and liberty to apply to ascertain interest.

Citation
MA NAM v. PEACEFUL CONSULTANTS LTD AND ANOTHER
Parties
Plaintiff: Plaintiff; 1st Defendant (company Registered Owner): 1st defendant; 2nd Defendant (sole Director and Shareholder): 2nd defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 August 2010
Case Number
HCA2305/2008
Procedural Posture
Civil Trusts and Equitable Remedies (account, Constructive Trust, Knowing Assistance) / Judgment (trial Concluded)
Outcome
Plaintiff's claims for declaration of constructive trust and for knowing assistance against the 2nd defendant dismissed; court found a HK$3,000,000 loan secured by the property; interest awarded and costs ordered as described below.
Legal Topics
Constructive Trust, Breach of Fiduciary Duty, Knowing Assistance, Equitable Accounting, Mareva Injunction, Interest on Loan
Source Language
EN
Trusts Equity Property Contract Civil Procedure Constructive Trust Breach of Fiduciary Duty Knowing Assistance +3 more

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Parties

Plaintiff

Plaintiff

1st defendant

1st Defendant (company Registered Owner)

2nd defendant

2nd Defendant (sole Director and Shareholder)

Procedural Posture

Civil Trusts and Equitable Remedies (account, Constructive Trust, Knowing Assistance) / Judgment (trial Concluded)

Legal Issues

  1. 1 Whether the 1st defendant held the property on trust for the plaintiff
  2. 2 Whether the HK$3,000,000 payment was a loan secured by the property
  3. 3 Whether the 2nd defendant is liable for knowing assistance in breach of trust

Ratio Decidendi

Court accepted defendants' evidence that the HK$3,000,000 was a loan and the property was transferred to the 1st defendant as security, rejected the plaintiff's trust claim and claim against the 2nd defendant for knowing assistance, and ordered interest at bank best lending rate plus 2% from end of initial three-month period to 11 June 2008, with parties to calculate the sum and liberty to apply to ascertain interest.

Court Disposition

Plaintiff's claims for declaration of constructive trust and for knowing assistance against the 2nd defendant dismissed; court found a HK$3,000,000 loan secured by the property; interest awarded and costs ordered as described below.

Orders

  • Plaintiff's claim that 1st defendant held the property on trust dismissed
  • Claim against 2nd defendant for knowing assistance dismissed