FONG SHUI HIN AND OTHERS v. LAM KIT SING AND OTHERS

FONG SHUI HIN AND OTHERS v. LAM KIT SING AND OTHERS

The Peregrine principle is confined to liquidation/winding-up ex parte contexts where companies are insolvent and unrepresented; it does not apply to a solvent association whose receivers were appointed for limited administrative duties and then discharged. Therefore no continuing fiduciary duty to account arose and the disputed items must be resolved by normal inter partes taxation; the Association's application to refuse taxation is dismissed.

Citation
FONG SHUI HIN AND OTHERS v. LAM KIT SING AND OTHERS
Parties
1st Petitioner: FONG SHUI HIN; 2nd Petitioner: YUEN CHOW ON; 3rd Petitioner: KO WAI CHUNG; 4th Petitioner: KO CHOI HIN; 5th Petitioner: YU KWONG KAY; 1st Respondent: LAM KIT SING; 2nd Respondent: ZEALL KWOK HING SHAMSON (also known as SIU KOO HING and also known as SIU KWOK HING SAMSON); 3rd Respondent: SHAMSON ZEALL & CO. SOLICITORS; 4th Respondent: FONG HUP WAN; 5th Respondent: SIU KON LAM; 6th Respondent: NG KAM WING; 7th Respondent: HONG KONG CHUNG SHAN LUNG CHAN CLAN ASSOCIATION
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 September 2007
Case Number
HCMP1989/2004
Procedural Posture
Miscellaneous Proceedings Under S.168 a Companies Ordinance (cap.32) Concerning Taxation of Receivers' Bills of Costs / Ruling on Adjourned Taxation Hearing; Taxation to Continue
Outcome
Application by the Association rejected; taxation to continue under ordinary inter partes procedure
Legal Topics
Receivership, Taxation of Costs, Continuing Duty to Account, Companies (winding Up) Rules, Ex Parte Taxation
Source Language
EN
Company Law Costs and Taxation Fiduciary Duties Insolvency/receivership Receivership Taxation of Costs Continuing Duty to Account Companies (winding Up) Rules +1 more

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Parties

FONG SHUI HIN

1st Petitioner

YUEN CHOW ON

2nd Petitioner

KO WAI CHUNG

3rd Petitioner

KO CHOI HIN

4th Petitioner

YU KWONG KAY

5th Petitioner

LAM KIT SING

1st Respondent

ZEALL KWOK HING SHAMSON (also known as SIU KOO HING and also known as SIU KWOK HING SAMSON)

2nd Respondent

SHAMSON ZEALL & CO. SOLICITORS

3rd Respondent

FONG HUP WAN

4th Respondent

SIU KON LAM

5th Respondent

NG KAM WING

6th Respondent

HONG KONG CHUNG SHAN LUNG CHAN CLAN ASSOCIATION

7th Respondent

Procedural Posture

Miscellaneous Proceedings Under S.168 a Companies Ordinance (cap.32) Concerning Taxation of Receivers' Bills of Costs / Ruling on Adjourned Taxation Hearing; Taxation to Continue

Legal Issues

  1. 1 Whether the Peregrine principle requiring receivers/liquidators to account applies where receivers were discharged and the company/association solvent
  2. 2 Whether a continuing fiduciary duty to account exists after discharge of receivers
  3. 3 Whether costs of inter partes taxation incurred after discharge fall within the court's prior order

Ratio Decidendi

The Peregrine principle is confined to liquidation/winding-up ex parte contexts where companies are insolvent and unrepresented; it does not apply to a solvent association whose receivers were appointed for limited administrative duties and then discharged. Therefore no continuing fiduciary duty to account arose and the disputed items must be resolved by normal inter partes taxation; the Association's application to refuse taxation is dismissed.

Court Disposition

Application by the Association rejected; taxation to continue under ordinary inter partes procedure

Orders

  • Application to refuse taxation dismissed
  • Taxation of the outstanding items to continue; continued taxation fixed for one hour on an early date