IU, LAI & LI (A FIRM) v. WONG YUEN

IU, LAI & LI (A FIRM) v. WONG YUEN

Because the debtor did not deny the creditor's unrefuted evidence of an oral agreement by which the debtor agreed to pay the creditor's legal costs, and because clause 21 only allocated costs between Ambitious Success and PVL and did not preclude a separate agreement, the court concluded there was a binding oral agreement making the debtor personally liable and dismissed the application to set aside the statutory demand with costs.

Citation
IU, LAI & LI (A FIRM) v. WONG YUEN
Parties
Creditor: IU, LAI & LI (A FIRM); Debtor: WONG YUEN
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 June 1999
Case Number
HCSD19/1999
Procedural Posture
Application to Set Aside Statutory Demand (bankruptcy) / Decision on Application (court of First Instance, in Chambers) 10 June 1999
Outcome
Application to set aside the statutory demand dismissed.
Legal Topics
Statutory Demand, Costs Liability, Agency, Alter Ego Doctrine, Oral Agreement, Construction of Contractual Allocation of Costs
Source Language
EN
Bankruptcy Company Law Contract Civil Procedure Statutory Demand Costs Liability Agency Alter Ego Doctrine +2 more

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Parties

IU, LAI & LI (A FIRM)

Creditor

WONG YUEN

Debtor

Procedural Posture

Application to Set Aside Statutory Demand (bankruptcy) / Decision on Application (court of First Instance, in Chambers) 10 June 1999

Legal Issues

  1. 1 Whether the statutory demand should be set aside
  2. 2 Whether clause 21 of the Loan Agreement precluded personal liability of the debtor for legal costs
  3. 3 Whether an oral agreement existed between the creditor and the debtor making the debtor personally liable

Ratio Decidendi

Because the debtor did not deny the creditor's unrefuted evidence of an oral agreement by which the debtor agreed to pay the creditor's legal costs, and because clause 21 only allocated costs between Ambitious Success and PVL and did not preclude a separate agreement, the court concluded there was a binding oral agreement making the debtor personally liable and dismissed the application to set aside the statutory demand with costs.

Court Disposition

Application to set aside the statutory demand dismissed.

Orders

  • Application dismissed
  • Statutory demand upheld