REFCO INC v. TROIKA INVESTMENT LTD AND ANOTHER

REFCO INC v. TROIKA INVESTMENT LTD AND ANOTHER

The court accepted Thomas Meyers's evidence and, on balance of probabilities and having regard to the contemporaneous letter of 31 January 1983, subsequent telexes and commercial conduct, found that an express clearing agreement was made with Tai Fook in early 1983 making Tai Fook liable for the losses in Troika's...

Source-derived case information.

Citation
REFCO INC v. TROIKA INVESTMENT LTD AND ANOTHER
Parties
Plaintiff: Refco, Inc.; 1st Defendant: Troika Investment Limited; 2nd Defendant: Tai Fook Finance Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 February 1990
Case Number
HCCL96/1987
Procedural Posture
Commercial (high Court Commercial List) / Judgment After Trial on Merits
Outcome
Judgment for plaintiff Refco, Inc. against defendants Troika Investment Limited and Tai Fook Finance Company Limited; Troika's counterclaim dismissed.
Legal Topics
Clearing Agreement, Omnibus Account, Agency/principal, Mareva Injunction, Joinder, Witness Credibility, Damages and Interest
Source Language
en
Contract Commercial Law Equity Civil Procedure Evidence Clearing Agreement Omnibus Account Agency/principal +4 more

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Parties

Refco, Inc.

Plaintiff

Troika Investment Limited

1st Defendant

Tai Fook Finance Company Limited

2nd Defendant

Procedural Posture

Commercial (high Court Commercial List) / Judgment After Trial on Merits

Legal Issues

  1. 1 Whether an express clearing agreement was concluded in early 1983 between Refco and Tai Fook making Tai Fook liable for trades in Troika's omnibus account
  2. 2 Whether the plaintiff's primary witness (Thomas Meyers) was credible and sufficient to establish identity of contracting party
  3. 3 Whether Tai Fook can be held liable for Troika's trading positions and resulting loss

Ratio Decidendi

The court accepted Thomas Meyers's evidence and, on balance of probabilities and having regard to the contemporaneous letter of 31 January 1983, subsequent telexes and commercial conduct, found that an express clearing agreement was made with Tai Fook in early 1983 making Tai Fook liable for the losses in Troika's omnibus account; Troika was also liable for allowing its account to be used; judgment awarded to Refco.

Court Disposition

Judgment for plaintiff Refco, Inc. against defendants Troika Investment Limited and Tai Fook Finance Company Limited; Troika's counterclaim dismissed.

Orders

  • Judgment entered for the Plaintiff against the Defendants for US$7,165,815.66
  • Interest awarded at 2% above prime; interest recorded as US$1,823,854.13 as at 15 January 1990 and accruing at US$2,388.61 per day thereafter until judgment