YEUNG CHUNG LAU v. INCORPORATED OWNERS OF CENTURY INDUSTRIAL CENTRE AND OTHERS

YEUNG CHUNG LAU v. INCORPORATED OWNERS OF CENTURY INDUSTRIAL CENTRE AND OTHERS

The court held the DMC limited owners' power to matters connected with operation, servicing, maintenance, repair, rebuilding, insurance or management of the Building; the 6/5/2006 resolution did not relate to those matters and was inconsistent with the DMC so was invalid; there was no triable defence and accordingly the interlocutory injunction should be continued and the application to set it aside dismissed.

Citation
YEUNG CHUNG LAU v. INCORPORATED OWNERS OF CENTURY INDUSTRIAL CENTRE AND OTHERS
Parties
Plaintiff: Plaintiff; 1st Defendant: Incorporated Owners of Century Industrial Centre; 2nd Defendant: D2 (chairlady); 3rd Defendant: D3 (committee member)
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
24 July 2006
Case Number
DCCJ381/2006
Procedural Posture
Interim Injunction (civil) / Inter‑partes Summons / Interlocutory Hearing
Outcome
Interim injunction continued; application to set aside interim order dismissed
Legal Topics
Interlocutory Injunction, Deed of Mutual Covenant Interpretation, Building Management, Use of Management Funds, Retrospective Ratification of Resolutions
Source Language
EN
Civil Property Equity Interlocutory Injunction Deed of Mutual Covenant Interpretation Building Management Use of Management Funds Retrospective Ratification of Resolutions

Case Brief

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Parties

Plaintiff

Plaintiff

Incorporated Owners of Century Industrial Centre

1st Defendant

D2 (chairlady)

2nd Defendant

D3 (committee member)

3rd Defendant

Procedural Posture

Interim Injunction (civil) / Inter‑partes Summons / Interlocutory Hearing

Legal Issues

  1. 1 Whether the management committee/owners can use management funds to pay legal fees of individual owners sued in their personal capacity
  2. 2 Whether the 6/5/2006 owners' resolution could validly retrospectively authorize the payments
  3. 3 Whether the interim injunction granted should be set aside

Ratio Decidendi

The court held the DMC limited owners' power to matters connected with operation, servicing, maintenance, repair, rebuilding, insurance or management of the Building; the 6/5/2006 resolution did not relate to those matters and was inconsistent with the DMC so was invalid; there was no triable defence and accordingly the interlocutory injunction should be continued and the application to set it aside dismissed.

Court Disposition

Interim injunction continued; application to set aside interim order dismissed

Orders

  • 1st Defendant restrained until further order or trial from making further payments from management funds to Messrs. Lo Chan & Leung and/or other solicitors for costs and disbursements relating to HCA 1948 of 2005 and LDBM 340 of 2005
  • Costs of the summons to be in the cause