HOIE SOOK FONG AND ANOTHER v. ISMAIL HALIMA AND ANOTHER

HOIE SOOK FONG AND ANOTHER v. ISMAIL HALIMA AND ANOTHER

The Court found on the evidence that the vendor (1st defendant) revoked the auctioneer's authority prior to the auction and had fixed a reserve/sale price of HK$1.98m; accordingly no binding contract arose between plaintiffs and the 1st defendant and the 2nd defendant, having sold without authority, breached the implied warranty of authority and is liable to the plaintiffs for damages to be assessed. The 1st defendant succeeded on her counterclaim and indemnity claims between defendants were dismissed; Bullock costs order appropriate.

Citation
HOIE SOOK FONG AND ANOTHER v. ISMAIL HALIMA AND ANOTHER
Parties
1st Plaintiff: HOIE SOOK FONG; 2nd Plaintiff: JASON KA-WING, STOKES; 1st Defendant: ISMAIL HALIMA; 2nd Defendant: AA PROPERTY AUCTIONEERS LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 December 2008
Case Number
HCA1974/2006
Procedural Posture
Civil Action (sale of Property; Specific Performance and Damages; Breach of Warranty of Authority) / Trial Liability Hearing
Outcome
Plaintiffs' claim against 1st defendant dismissed; judgment for plaintiffs against 2nd defendant for damages for breach of warranty of authority (to be assessed by a master); 1st defendant's counterclaim succeeded (declaration no binding contract; vacatur of lis pendens); indemnity claims between defendants...
Legal Topics
Specific Performance, Breach of Warranty of Authority, Revocation of Agency, Auction Sales and Reserve Price, Conveyancing Formalities (s.3(1) Cpo), Costs Orders (bullock/sanderson)
Source Language
EN
Property Law Contract Law Agency Law Evidence Civil Procedure Specific Performance Breach of Warranty of Authority Revocation of Agency +3 more

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Parties

HOIE SOOK FONG

1st Plaintiff

JASON KA-WING, STOKES

2nd Plaintiff

ISMAIL HALIMA

1st Defendant

AA PROPERTY AUCTIONEERS LIMITED

2nd Defendant

Procedural Posture

Civil Action (sale of Property; Specific Performance and Damages; Breach of Warranty of Authority) / Trial Liability Hearing

Legal Issues

  1. 1 Whether the 1st defendant revoked the auctioneer's authority prior to the auction
  2. 2 Whether a binding contract of sale arose at the auction
  3. 3 Whether the auctioneer sold below the reserve price fixed by the vendor

Ratio Decidendi

The Court found on the evidence that the vendor (1st defendant) revoked the auctioneer's authority prior to the auction and had fixed a reserve/sale price of HK$1.98m; accordingly no binding contract arose between plaintiffs and the 1st defendant and the 2nd defendant, having sold without authority, breached the implied warranty of authority and is liable to the plaintiffs for damages to be assessed. The 1st defendant succeeded on her counterclaim and indemnity claims between defendants were dismissed; Bullock costs order appropriate.

Court Disposition

Plaintiffs' claim against 1st defendant dismissed; judgment for plaintiffs against 2nd defendant for damages for breach of warranty of authority (to be assessed by a master); 1st defendant's counterclaim succeeded (declaration no binding contract; vacatur of lis pendens); indemnity claims between defendants...

Orders

  • Judgment for plaintiffs against 2nd defendant for damages for breach of warranty of authority to be assessed by a master
  • Plaintiffs' claim against 1st defendant dismissed