CHAN KUM BUN AND ANOTHER v. HAUXTON ENTERPRISES LTD. AND ANOTHER

CHAN KUM BUN AND ANOTHER v. HAUXTON ENTERPRISES LTD. AND ANOTHER

Mr Yun, acting for his own company, knowingly consented to judgment without disclosing that the property had been surrendered to the bank and that completion was impossible; his omission amounted to serious dereliction of duty justifying an order that Yun & Co. bear costs personally, and as stakeholder Yun & Co. must return the $230,000 deposit where completion did not occur.

Citation
CHAN KUM BUN AND ANOTHER v. HAUXTON ENTERPRISES LTD. AND ANOTHER
Parties
1st Plaintiff / Appellant: Chan Kum Bun; 2nd Plaintiff / Appellant: Ho Sai Ling Helen; 1st Defendant / 1st Respondent: Hauxton Enterprises Limited; 2nd Respondent (solicitors): Yun & Co.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 July 2000
Case Number
HCA11803/1999
Procedural Posture
Civil Appeal Concerning Specific Performance and Costs Against Solicitors / Judgment on Appeal in Court of First Instance
Outcome
Appeal allowed; Yun & Co. ordered to bear costs personally on indemnity basis; deposit to be returned; specified costs ordered nisi
Legal Topics
Specific Performance, Relief Against Forfeiture, Stakeholder Duties and Return of Deposit, Personal Liability of Solicitors for Costs, Assessment of Costs for Litigants in Person, Damages in Lieu of Specific Performance
Source Language
EN
Property Law Civil Procedure Professional Liability Costs Specific Performance Relief Against Forfeiture Stakeholder Duties and Return of Deposit Personal Liability of Solicitors for Costs +2 more

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Parties

Chan Kum Bun

1st Plaintiff / Appellant

Ho Sai Ling Helen

2nd Plaintiff / Appellant

Hauxton Enterprises Limited

1st Defendant / 1st Respondent

Yun & Co.

2nd Respondent (solicitors)

Procedural Posture

Civil Appeal Concerning Specific Performance and Costs Against Solicitors / Judgment on Appeal in Court of First Instance

Legal Issues

  1. 1 Whether solicitors (Yun & Co.) should be ordered to bear costs personally under Order 62 for failing to disclose material facts
  2. 2 Whether Yun & Co., as stakeholder, must return the deposit of $230,000 where completion did not occur
  3. 3 Whether plaintiffs can recover damages in lieu of specific performance from the solicitors

Ratio Decidendi

Mr Yun, acting for his own company, knowingly consented to judgment without disclosing that the property had been surrendered to the bank and that completion was impossible; his omission amounted to serious dereliction of duty justifying an order that Yun & Co. bear costs personally, and as stakeholder Yun & Co. must return the $230,000 deposit where completion did not occur.

Court Disposition

Appeal allowed; Yun & Co. ordered to bear costs personally on indemnity basis; deposit to be returned; specified costs ordered nisi

Orders

  • Appeal allowed with costs of the appeal to the plaintiffs against Yun & Co.; Yun & Co. to bear costs personally on indemnity basis for the action including the counterclaim.
  • Order nisi that Yun & Co. pay legal costs in the sum of $701,600 in respect of the plaintiffs' legal costs in these proceedings; said order to become absolute in 14 days against Yun & Co.