SOLYDA S.R.L. (a company incorporated in Italy) v. WU GE AND ANOTHER

SOLYDA S.R.L. (a company incorporated in Italy) v. WU GE AND ANOTHER

There is a triable issue whether D1 acted in good faith and had given value without notice and whether illegality applies is a matter requiring full trial; accordingly summary judgment is refused, leave to defend is granted but made conditional on full payment of the disputed sum into court, and the money already paid into court is treated as satisfying that condition.

Citation
[2021] HKCFI 1825
Parties
Plaintiff: Solyda S.R.L.; 1st Defendant: Wu Ge (吴格); 2nd Defendant: Li Zenghui (李增辉)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 June 2021
Case Number
HCA161/2019
Procedural Posture
Proprietary Claim and Unjust Enrichment / Summary Judgment Application (interlocutory)
Outcome
Plaintiff's summary judgment summons dismissed; 1st Defendant granted leave to defend conditional on full payment of the disputed sum into court; monies previously paid into court treated as such payment; costs order nisi for costs in the cause.
Legal Topics
Tracing, Constructive Trust, Bona Fide Purchaser for Value Without Notice, Change of Position, Mareva Injunction, Foreign Illegality, Domestic Illegality, Summary Judgment
Source Language
EN
Equity Trusts Unjust Enrichment Civil Procedure Private International Law Banking Fraud Illegality (foreign Exchange) Tracing +7 more

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Parties

Solyda S.R.L.

Plaintiff

Wu Ge (吴格)

1st Defendant

Li Zenghui (李增辉)

2nd Defendant

Procedural Posture

Proprietary Claim and Unjust Enrichment / Summary Judgment Application (interlocutory)

Legal Issues

  1. 1 Whether the plaintiff has a sustainable proprietary claim by tracing the USD360,000 to the misappropriated funds
  2. 2 Whether the 1st defendant is a bona fide purchaser for value without notice
  3. 3 Whether the 1st defendant has a defence of change of position

Ratio Decidendi

There is a triable issue whether D1 acted in good faith and had given value without notice and whether illegality applies is a matter requiring full trial; accordingly summary judgment is refused, leave to defend is granted but made conditional on full payment of the disputed sum into court, and the money already paid into court is treated as satisfying that condition.

Court Disposition

Plaintiff's summary judgment summons dismissed; 1st Defendant granted leave to defend conditional on full payment of the disputed sum into court; monies previously paid into court treated as such payment; costs order nisi for costs in the cause.

Orders

  • Summons dated 29 October 2020 dismissed
  • 1st Defendant granted leave to defend conditional on full payment of USD360,000 into Court