CHUA MING YUEN v. HENTRON INVESTMENTS LTD AND ANOTHER

CHUA MING YUEN v. HENTRON INVESTMENTS LTD AND ANOTHER

Completion according to the contract did not occur because the payment by cheque/bankers' draft had not been honoured/cleared; Hentron nevertheless affirmed the contract by retaining the transferred funds and therefore must deliver the duly executed assignment and title deeds; L.H. Kwan & Co. were professionally negligent in handling the payment and must indemnify the purchaser if Hentron cannot satisfy the judgment; RCC was justified in not implementing undertakings while payment remained unpaid but is entitled to indemnity from Hentron for losses caused by Hentron's wrongful instructions.

Citation
CHUA MING YUEN v. HENTRON INVESTMENTS LTD AND ANOTHER
Parties
Plaintiff (hca 3140/2002): Chua Ming Yuen; 1st Defendant / Third Party (vendor): Hentron Investments Limited; 2nd Defendant; Plaintiff (hca 2930/2002): Kwan Lai Hung; Purchaser's Solicitors / Plaintiff (hca 2930/2002): L.H. Kwan & Company; Defendant (hca 2930/2002) / Vendor's Solicitors / 3rd Party Claimant Issues: Rowland Chow, Chan & Co.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 December 2004
Case Number
HCA3140/2002
Procedural Posture
Consolidated Civil Actions (hca 3140/2002 & HCA 2930/2002) / Judgment (court of First Instance)
Outcome
Judgment for Plaintiff Chua: specific performance granted; Hentron's counterclaim dismissed; L.H. Kwan & Co. found professionally negligent and ordered to indemnify purchaser if Hentron cannot satisfy judgment; RCC entitled to indemnity/costs against Hentron; costs orders made
Legal Topics
Specific Performance, Payment by Cheque and Clearance, Solicitors' Undertakings, Repudiation and Affirmation of Contract, Damages, Bank CHATS Transfer
Source Language
EN
Contract Property Conveyancing Professional Negligence Equity Specific Performance Payment by Cheque and Clearance Solicitors' Undertakings +3 more

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Parties

Chua Ming Yuen

Plaintiff (hca 3140/2002)

Hentron Investments Limited

1st Defendant / Third Party (vendor)

Kwan Lai Hung

2nd Defendant; Plaintiff (hca 2930/2002)

L.H. Kwan & Company

Purchaser's Solicitors / Plaintiff (hca 2930/2002)

Rowland Chow, Chan & Co.

Defendant (hca 2930/2002) / Vendor's Solicitors / 3rd Party Claimant Issues

Procedural Posture

Consolidated Civil Actions (hca 3140/2002 & HCA 2930/2002) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether completion occurred when solicitors' cheques and bankers' draft had been handed over but the bankers' draft had not cleared
  2. 2 Whether vendor validly repudiated the contract upon non‑payment and whether vendor subsequently affirmed the contract
  3. 3 Whether solicitors (LHK) were professionally negligent in their handling of the payment and completion

Ratio Decidendi

Completion according to the contract did not occur because the payment by cheque/bankers' draft had not been honoured/cleared; Hentron nevertheless affirmed the contract by retaining the transferred funds and therefore must deliver the duly executed assignment and title deeds; L.H. Kwan & Co. were professionally negligent in handling the payment and must indemnify the purchaser if Hentron cannot satisfy the judgment; RCC was justified in not implementing undertakings while payment remained unpaid but is entitled to indemnity from Hentron for losses caused by Hentron's wrongful instructions.

Court Disposition

Judgment for Plaintiff Chua: specific performance granted; Hentron's counterclaim dismissed; L.H. Kwan & Co. found professionally negligent and ordered to indemnify purchaser if Hentron cannot satisfy judgment; RCC entitled to indemnity/costs against Hentron; costs orders made

Orders

  • Hentron Investments Limited to deliver the duly executed assignment and all title deeds and keys to Chua Ming Yuen or her solicitors forthwith
  • Specific performance of the sale and purchase agreement ordered in favour of Chua Ming Yuen