SINO FAVOUR DEVELOPMENT LTD AND ANOTHER v. KAN WAI MING AND OTHERS

SINO FAVOUR DEVELOPMENT LTD AND ANOTHER v. KAN WAI MING AND OTHERS

None of the Defendants established an arguable proprietary interest in the $2.5 million held by the solicitors; the 2nd Defendant's asserted 50% interest was unparticularised and undermined by a signed waiver; allegations of illegality and fraud were irrelevant to the immediate question of entitlement to the stakeholder funds; accordingly the Plaintiffs' application for payment was allowed and partial judgment granted.

Citation
SINO FAVOUR DEVELOPMENT LTD AND ANOTHER v. KAN WAI MING AND OTHERS
Parties
1st Plaintiff: Sino Favour Development Limited; 2nd Plaintiff: Shiny Develop Limited; 1st Defendant: Kan Wai Chung; 1st Defendant: Kan Kar Fai; 1st Defendant: Kan Wai Ming; 1st Defendant: Lau Fook Keung; 1st Defendant: Kan For Ping Steven; 2nd Defendant: Barbican Capital Investment Limited; 3rd Defendant: Tsang Wing Kei, Wilkie
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 September 2009
Case Number
HCA1519/2005
Procedural Posture
Civil: Application for Distribution of Stakeholder Funds / Interlocutory Chambers Decision on Partial Judgment Under Order 14 (liberty to Apply)
Outcome
Plaintiffs' application allowed; partial judgment granted ordering payment of stakeholder funds to the Plaintiffs.
Legal Topics
Proprietary Interest, Stakeholder Funds, Partial Judgment, Illegality, Fraud
Source Language
EN
Civil Procedure Equity Property Trusts Company Law Proprietary Interest Stakeholder Funds Partial Judgment +2 more

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Parties

Sino Favour Development Limited

1st Plaintiff

Shiny Develop Limited

2nd Plaintiff

Kan Wai Chung

1st Defendant

Kan Kar Fai

1st Defendant

Kan Wai Ming

1st Defendant

Lau Fook Keung

1st Defendant

Kan For Ping Steven

1st Defendant

Barbican Capital Investment Limited

2nd Defendant

Tsang Wing Kei, Wilkie

3rd Defendant

Procedural Posture

Civil: Application for Distribution of Stakeholder Funds / Interlocutory Chambers Decision on Partial Judgment Under Order 14 (liberty to Apply)

Legal Issues

  1. 1 Whether any Defendant has an arguable proprietary interest in the $2.5 million held by solicitors as stakeholder
  2. 2 Whether allegations of illegality affect the disposition of monies paid pursuant to a court order
  3. 3 Whether allegations of fraud prevent payment of stakeholder funds to Plaintiffs pending trial

Ratio Decidendi

None of the Defendants established an arguable proprietary interest in the $2.5 million held by the solicitors; the 2nd Defendant's asserted 50% interest was unparticularised and undermined by a signed waiver; allegations of illegality and fraud were irrelevant to the immediate question of entitlement to the stakeholder funds; accordingly the Plaintiffs' application for payment was allowed and partial judgment granted.

Court Disposition

Plaintiffs' application allowed; partial judgment granted ordering payment of stakeholder funds to the Plaintiffs.

Orders

  • Plaintiffs' application allowed
  • Solicitors holding $2,500,000 to pay the monies to the Plaintiffs