SIT LAI YUK v. TSE HAU TANG

SIT LAI YUK v. TSE HAU TANG

The plaintiff proved on the balance of probabilities that there was a common intention that she be the beneficial owner and that she detrimentally relied on that intention by paying the purchase price, mortgage and associated costs; it would be unconscionable for the defendant to assert the legal title; therefore the defendant holds his legal interest on trust for the plaintiff and must vest his share to her.

Citation
[2021] HKDC 1511
Parties
Plaintiff: Plaintiff; Defendant: Defendant
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
1 December 2021
Case Number
DCCJ6440/2019
Procedural Posture
Property Dispute Constructive Trust / Vesting Order / Judgment at Trial (defendant Absent)
Outcome
Judgment for the plaintiff: declaration of constructive trust in favour of the plaintiff and vesting order; costs ordered against the defendant (order nisi).
Legal Topics
Constructive Trust, Resulting Trust, Common Intention, Vesting Order, Unconscionability
Source Language
EN
Property Law Trusts and Equity Civil Procedure Constructive Trust Resulting Trust Common Intention Vesting Order Unconscionability

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Parties

Plaintiff

Plaintiff

Defendant

Defendant

Procedural Posture

Property Dispute Constructive Trust / Vesting Order / Judgment at Trial (defendant Absent)

Legal Issues

  1. 1 Whether a common intention constructive trust arose in favour of the plaintiff
  2. 2 Whether the plaintiff detrimentally relied on the common intention
  3. 3 Whether it is unconscionable for the defendant to assert legal title

Ratio Decidendi

The plaintiff proved on the balance of probabilities that there was a common intention that she be the beneficial owner and that she detrimentally relied on that intention by paying the purchase price, mortgage and associated costs; it would be unconscionable for the defendant to assert the legal title; therefore the defendant holds his legal interest on trust for the plaintiff and must vest his share to her.

Court Disposition

Judgment for the plaintiff: declaration of constructive trust in favour of the plaintiff and vesting order; costs ordered against the defendant (order nisi).

Orders

  • Declaration that the Property registered in the names of the plaintiff and the defendant as joint tenants is jointly held by the plaintiff and the defendant on trust for the plaintiff absolutely and for her sole benefit
  • The defendant do vest unto the plaintiff the rights and title to his share of the Property