LIU WAI KEUNG v. LIU WAI MAN

LIU WAI KEUNG v. LIU WAI MAN

Court found on balance of probabilities that a common family intention formed in 1979-1980 that property funded by plaintiff would be his; defendant held legal title as nominee to secure bank mortgage; plaintiff provided the deposit, ongoing repayments and the 1983 lump sum and occupied the property; unconscionable for defendant to assert legal title; constructive trust declared in favour of plaintiff and limitation defence failed because trustee remained in possession of legal title.

Citation
LIU WAI KEUNG v. LIU WAI MAN
Parties
Plaintiff: Plaintiff; Defendant: Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 September 2013
Case Number
HCA1106/2011
Procedural Posture
Declaration of Trust / Proprietary Claim Over Sale Proceeds / Judgment at Trial
Outcome
Plaintiff's claim allowed: declaration that the Property was held by the defendant on constructive trust for the plaintiff absolutely; plaintiff entitled to proceeds of sale subject to outgoings and sale costs; costs ordered nisi against defendant.
Legal Topics
Constructive Trust, Resulting Trust, Beneficial Ownership, Limitation Period (s20 Limitation Ordinance), Possession of Trust Property, Nominee Ownership
Source Language
EN
Trusts Property Law Equity Limitation Law Civil Litigation Constructive Trust Resulting Trust Beneficial Ownership +3 more

Case Brief

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Parties

Plaintiff

Plaintiff

Defendant

Defendant

Procedural Posture

Declaration of Trust / Proprietary Claim Over Sale Proceeds / Judgment at Trial

Legal Issues

  1. 1 Whether the defendant held the Property on constructive trust for the plaintiff
  2. 2 Whether a resulting trust arose
  3. 3 Whether the plaintiff altered his position in reliance on a common intention

Ratio Decidendi

Court found on balance of probabilities that a common family intention formed in 1979-1980 that property funded by plaintiff would be his; defendant held legal title as nominee to secure bank mortgage; plaintiff provided the deposit, ongoing repayments and the 1983 lump sum and occupied the property; unconscionable for defendant to assert legal title; constructive trust declared in favour of plaintiff and limitation defence failed because trustee remained in possession of legal title.

Court Disposition

Plaintiff's claim allowed: declaration that the Property was held by the defendant on constructive trust for the plaintiff absolutely; plaintiff entitled to proceeds of sale subject to outgoings and sale costs; costs ordered nisi against defendant.

Orders

  • Declaration that the Property (Flat D9, 6th Floor, Kut Cheong Mansion, 217 Tsat Tsz Mui Road, North Point, Hong Kong) was held by the defendant on constructive trust for the plaintiff absolutely
  • Plaintiff entitled to the proceeds of sale of the Property subject to payment of all outgoings and the costs of and incidental to the sale