WONG CHICK KEUNG AND ANOTHER v. WOO MAN SANG AND OTHERS

WONG CHICK KEUNG AND ANOTHER v. WOO MAN SANG AND OTHERS

Although the plaintiffs held a beneficial interest under a resulting trust, that equitable interest was defeated by the 2nd–4th defendants who were bona fide purchasers for value without notice and whose formal sale agreement was registered within one month before the lis pendens took effect; the plaintiffs' proprietary claim against the purchasers is dismissed, but plaintiffs have personal remedies against the trustee for breach of trust and against the trustee for conversion; the third‑party solicitors breached their duty to purchasers and must indemnify them, with quantum to be assessed.

Citation
WONG CHICK KEUNG AND ANOTHER v. WOO MAN SANG AND OTHERS
Parties
1st Plaintiff: Wong Chick Keung; 2nd Plaintiff: Wan Shui Ling; 1st Defendant: Woo Man Sang; 2nd Defendant: Mo Lai Lung; 3rd Defendant: Moo Sim Lung; 4th Defendant: Mo Oi Lung; Third Party: Stevenson, Wong & Co. (sued as a firm)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 February 2001
Case Number
HCMP3490/1991
Procedural Posture
Trust and Property Dispute (resulting Trust, Conveyancing and Priority) / Final Judgment (court of First Instance)
Outcome
Plaintiffs' proprietary claims against 2nd–4th defendants dismissed; plaintiffs entitled to declarations and damages against 1st defendant for breach of trust and conversion; 2nd–4th defendants entitled to indemnity and costs from third party; third party liable for negligence; costs orders made with taxation per...
Legal Topics
Resulting Trust, Lis Pendens, Priority of Registration, Bona Fide Purchaser Without Notice, Solicitor Negligence, Indemnity, Conversion, Vesting Order
Source Language
EN
Equity Property Law Conveyancing Trusts Professional Negligence Resulting Trust Lis Pendens Priority of Registration +5 more

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Parties

Wong Chick Keung

1st Plaintiff

Wan Shui Ling

2nd Plaintiff

Woo Man Sang

1st Defendant

Mo Lai Lung

2nd Defendant

Moo Sim Lung

3rd Defendant

Mo Oi Lung

4th Defendant

Stevenson, Wong & Co. (sued as a firm)

Third Party

Procedural Posture

Trust and Property Dispute (resulting Trust, Conveyancing and Priority) / Final Judgment (court of First Instance)

Legal Issues

  1. 1 Whether plaintiffs held beneficial ownership of the property by resulting trust
  2. 2 Whether the purchasers (2nd–4th defendants) were bona fide purchasers for value without notice and obtained priority over the plaintiffs by registration
  3. 3 Priority between registered sale agreement and lis pendens under Land Registration Ordinance

Ratio Decidendi

Although the plaintiffs held a beneficial interest under a resulting trust, that equitable interest was defeated by the 2nd–4th defendants who were bona fide purchasers for value without notice and whose formal sale agreement was registered within one month before the lis pendens took effect; the plaintiffs' proprietary claim against the purchasers is dismissed, but plaintiffs have personal remedies against the trustee for breach of trust and against the trustee for conversion; the third‑party solicitors breached their duty to purchasers and must indemnify them, with quantum to be assessed.

Court Disposition

Plaintiffs' proprietary claims against 2nd–4th defendants dismissed; plaintiffs entitled to declarations and damages against 1st defendant for breach of trust and conversion; 2nd–4th defendants entitled to indemnity and costs from third party; third party liable for negligence; costs orders made with taxation per...

Orders

  • Declaration that 1st defendant has since 5 December 1991 held proceeds of sale on trust for the plaintiffs and incidental tracing, accounts and enquiries to be carried out
  • Judgment against 1st defendant in the sum of 46000 HKD for conversion with interest at 10% from date of writ until judgment