FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG

FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG

The appeal succeeds and summary judgment is set aside because the defendant raised credible, fact-sensitive triable issues — specifically whether the HK$1,000,000 was a loan or a prepayment of joint-venture profits and whether Fok Hing held joint-venture profits on trust or acted as the joint-venture's corporate vehicle — such that a full trial is required and unconditional leave to defend must be granted.

Citation
FOK HING INTERNATIONAL CO LTD v. LIU HSIAO CHENG
Parties
Plaintiff in Original Action; 1st Defendant in Counterclaim: Fok Hing International Company Limited; Defendant in Original Action; Plaintiff in Counterclaim: Liu Hsiao Cheng; 2nd Defendant in Counterclaim: Wong Shu Wai
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 August 2014
Case Number
HCA97/2013
Procedural Posture
Civil Appeal Against Summary Judgment / Decision on Appeal Granting Leave to Defend and Setting Aside Summary Judgment
Outcome
Appeal allowed; order of Master S Lo dated 18 February 2014 set aside; unconditional leave granted to Mr Liu to defend Fok Hing's claim
Legal Topics
Summary Judgment, Constructive Trust, Unjust Enrichment, Locus Standi, Equitable Set Off, Piercing Corporate Veil, Joint Venture, Agency
Source Language
EN
Contract Equity Trust Company Law Civil Procedure Summary Judgment Constructive Trust Unjust Enrichment +5 more

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Parties

Fok Hing International Company Limited

Plaintiff in Original Action; 1st Defendant in Counterclaim

Liu Hsiao Cheng

Defendant in Original Action; Plaintiff in Counterclaim

Wong Shu Wai

2nd Defendant in Counterclaim

Procedural Posture

Civil Appeal Against Summary Judgment / Decision on Appeal Granting Leave to Defend and Setting Aside Summary Judgment

Legal Issues

  1. 1 Whether summary judgment was properly granted against the defendant given alleged triable issues of fact
  2. 2 Whether the HK$1,000,000 was a loan or a prepayment of joint-venture profit share
  3. 3 Whether Fok Hing held joint-venture profits on trust or was a corporate vehicle/agent for the joint-venture

Ratio Decidendi

The appeal succeeds and summary judgment is set aside because the defendant raised credible, fact-sensitive triable issues — specifically whether the HK$1,000,000 was a loan or a prepayment of joint-venture profits and whether Fok Hing held joint-venture profits on trust or acted as the joint-venture's corporate vehicle — such that a full trial is required and unconditional leave to defend must be granted.

Court Disposition

Appeal allowed; order of Master S Lo dated 18 February 2014 set aside; unconditional leave granted to Mr Liu to defend Fok Hing's claim

Orders

  • The costs of the Order 14 summons before the Master to be costs in the cause
  • The costs of the appeal to be paid by the plaintiff (Fok Hing International Company Limited)