WU SHENG LONG v. C-CORP PRECIOUS METALS LTD

WU SHENG LONG v. C-CORP PRECIOUS METALS LTD

Defendant sold plaintiff's silver without lawful right and is liable for conversion; no implied contractual or common law duties required defendant to monitor market or close positions; parties dealt as principals for London gold so no agent lien arose; equitable set-off unavailable because defendant wrongfully converted plaintiff's property; plaintiff entitled to market-value damages as of sale date (16 Oct 2008); defendant entitled to judgment on full deficit from liquidation but execution stayed for set-off pending assessment.

Citation
WU SHENG LONG v. C-CORP PRECIOUS METALS LTD
Parties
Plaintiff: Plaintiff; Defendant: Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 March 2011
Case Number
HCA1912/2008
Procedural Posture
Civil Commercial Dispute (conversion; Breach of Contract; Debt Counterclaim) / Judgment After Trial
Outcome
Judgment for plaintiff on conversion; damages to be assessed as market value on 16 October 2008 with interest; judgment for defendant on counterclaim for full deficit; mutual set-off to be effected after assessment; costs reserved with each party bearing own costs to date.
Legal Topics
Implied Terms, Brokerage Duties, Conversion, Lien, Equitable Set Off, Measure of Damages, Agency Vs Principal
Source Language
EN
Contract Law Tort (conversion) Property Law Equity Commercial Law Implied Terms Brokerage Duties Conversion +4 more

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Parties

Plaintiff

Plaintiff

Defendant

Defendant

Procedural Posture

Civil Commercial Dispute (conversion; Breach of Contract; Debt Counterclaim) / Judgment After Trial

Legal Issues

  1. 1 Whether alleged duties to monitor market and to notify/close positions were implied terms of the contract or common law duties
  2. 2 Whether defendant acted as broker/agent or as principal in margin trading
  3. 3 Whether an oral pledge or lien existed over the silver allowing sale without consent

Ratio Decidendi

Defendant sold plaintiff's silver without lawful right and is liable for conversion; no implied contractual or common law duties required defendant to monitor market or close positions; parties dealt as principals for London gold so no agent lien arose; equitable set-off unavailable because defendant wrongfully converted plaintiff's property; plaintiff entitled to market-value damages as of sale date (16 Oct 2008); defendant entitled to judgment on full deficit from liquidation but execution stayed for set-off pending assessment.

Court Disposition

Judgment for plaintiff on conversion; damages to be assessed as market value on 16 October 2008 with interest; judgment for defendant on counterclaim for full deficit; mutual set-off to be effected after assessment; costs reserved with each party bearing own costs to date.

Orders

  • Judgment for Plaintiff for damages for conversion to be assessed as of 16 October 2008 with interest at 1% above HIBOR from 16 October 2008 until completion of assessment and thereafter at judgment rate
  • Judgment for Defendant for US$1,614,383.52 with interest at 1% above HIBOR from 18 September 2008 until judgment and thereafter at judgment rate