CHEUNG YING LUN AND ANOTHER v. KARRIE TRADING LTD AND OTHERS

CHEUNG YING LUN AND ANOTHER v. KARRIE TRADING LTD AND OTHERS

The court dismissed the defendants' applications to strike out the statements of claim because, taking the pleaded facts at their highest, they disclosed arguable causes of action including fraud, conspiracy and knowing receipt; the issues are evidence‑sensitive and require trial; it was not a plain and obvious case to strike out. Costs were ordered to follow the event, to be taxed if not agreed, with a certificate for two counsel (order nisi).

Citation
CHEUNG YING LUN AND ANOTHER v. KARRIE TRADING LTD AND OTHERS
Parties
Plaintiff (hca 550/2010): Cheung Ying Lun; Plaintiff (hca 550/2010): Lee Ma Ka Lok; Plaintiff (administrator of Chan Yok Ping, Deceased) (hca 551/2010): Jorge Alberto Fu; Plaintiff (administratrix of Chan Yok Ping, Deceased) (hca 551/2010): Lo Kwok Pui Rosaline; 1st Defendant (hca 550/2010): Karrie Trading Limited; 2nd Defendant (hca 550/2010); 1st Defendant (hca 551/2010): Legal Way Limited; 3rd Defendant (hca 550/2010); 2nd Defendant (hca 551/2010): Chiu Koon Shou; 3rd Defendant (hca 550/2010); 2nd Defendant (hca 551/2010): Tsang Fan; Joint and Several Liquidator / Defendant (both Actions): Wan (the Joint and Several Liquidators of the Incorporated Owners of Kai Tak Mansion (Block Three) in compulsory liquidation)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 December 2010
Case Number
HCA550/2010
Procedural Posture
Civil Applications to Strike Out Statements of Claim in Actions Alleging Fraud, Conspiracy, Knowing Receipt and Proprietary Claims / Interlocutory Hearing of Applications to Strike Out Statements of Claim (30 Nov 2010); Judgment Handed Down 15 Dec 2010
Outcome
Application to strike out the statements of claim dismissed
Legal Topics
Strike Out, Charging Order, Order for Sale, Service of Process, Fraudulent Conspiracy, Knowing Receipt, Fiduciary Duty, Vacant Possession, Title Deeds
Source Language
EN
Civil Procedure Equity Property Law Trusts and Fiduciary Duties Professional Negligence and Misconduct Fraud Strike Out Charging Order +7 more

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Parties

Cheung Ying Lun

Plaintiff (hca 550/2010)

Lee Ma Ka Lok

Plaintiff (hca 550/2010)

Jorge Alberto Fu

Plaintiff (administrator of Chan Yok Ping, Deceased) (hca 551/2010)

Lo Kwok Pui Rosaline

Plaintiff (administratrix of Chan Yok Ping, Deceased) (hca 551/2010)

Karrie Trading Limited

1st Defendant (hca 550/2010)

Legal Way Limited

2nd Defendant (hca 550/2010); 1st Defendant (hca 551/2010)

Chiu Koon Shou

3rd Defendant (hca 550/2010); 2nd Defendant (hca 551/2010)

Tsang Fan

3rd Defendant (hca 550/2010); 2nd Defendant (hca 551/2010)

Wan (the Joint and Several Liquidators of the Incorporated Owners of Kai Tak Mansion (Block Three) in compulsory liquidation)

Joint and Several Liquidator / Defendant (both Actions)

Procedural Posture

Civil Applications to Strike Out Statements of Claim in Actions Alleging Fraud, Conspiracy, Knowing Receipt and Proprietary Claims / Interlocutory Hearing of Applications to Strike Out Statements of Claim (30 Nov 2010); Judgment Handed Down 15 Dec 2010

Legal Issues

  1. 1 Whether the statements of claim disclose a reasonable cause of action or are frivolous/vexatious/abuse of process
  2. 2 Whether liquidators owed the fiduciary duties alleged and whether breach of such duties is established as a matter of law on the pleaded facts
  3. 3 Whether the sales effected pursuant to charging orders and orders for sale can be set aside for fraud, conspiracy or as sales at gross undervalue

Ratio Decidendi

The court dismissed the defendants' applications to strike out the statements of claim because, taking the pleaded facts at their highest, they disclosed arguable causes of action including fraud, conspiracy and knowing receipt; the issues are evidence‑sensitive and require trial; it was not a plain and obvious case to strike out. Costs were ordered to follow the event, to be taxed if not agreed, with a certificate for two counsel (order nisi).

Court Disposition

Application to strike out the statements of claim dismissed

Orders

  • Applications to strike out the statements of claim and alternative applications to strike specified paragraphs are dismissed
  • Defendants may serve requests for further and better particulars if they contend parts of the pleadings are insufficiently particularised