WU WAI LEUNG DANNY v. CHOW TAI FOOK NOMINEE LTD AND OTHERS

WU WAI LEUNG DANNY v. CHOW TAI FOOK NOMINEE LTD AND OTHERS

The court found the alleged oral arrangements and estoppel assertions are overwhelmingly contradicted by detailed contemporaneous written loan agreements, supplemental agreements, securities and communications; the alleged oral variations were invalidated by express no-oral-modification clauses and deeds; therefore defendants/guarantor disclosed no triable issue or arguable defence and the related declaration claims and counterclaims were frivolous/abusive. Summary judgment for the plaintiffs and striking-out of DW's claims and counterclaims were ordered with indemnity costs where contractually provided.

Citation
[2021] HKCFI 3019
Parties
Plaintiff in HCA 85/2020 and HCA 86/2020; 1st Defendant in HCA 123/2020 and HCA 221/2020: Chow Tai Fook Nominee Limited; 1st Defendant in HCA 85/2020 (borrower Under Facility): Diamond City Limited; 1st Defendant in HCA 86/2020 and 1st Defendant in HCA 92/2020 (borrower Under Loans): Gateway Asia Resources Limited; Plaintiff in HCA 92/2020; 2nd Defendant in HCA 123/2020: Idea Perfect Holdings Limited; 2nd Defendant in HCA 85/2020, HCA 86/2020 and HCA 92/2020; Plaintiff in HCA 123/2020 and HCA 221/2020: Wu Wai Leung, Danny; 3rd Defendant in HCA 92/2020; 3rd Defendant in HCA 123/2020: Chan Tak Yuen (Allen Chan); Receiver Appointed Over Gateway Asia and Diamond City; 3rd Defendant in HCA 123/2020; 2nd Defendant in HCA 221/2020: Koo Chi Sum; Receiver Appointed Over Gateway Asia and Diamond City; 4th Defendant in HCA 123/2020; 3rd Defendant in HCA 221/2020: Simon Rhys Thomas
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 October 2021
Case Number
HCA221/2020
Procedural Posture
Civil: Debt Recovery, Declarations, Summary Judgment and Striking Out Applications / Chambers Judgment on Consolidated Summary Judgment and Striking Out Applications
Outcome
Summary judgment entered for Chow Tai Fook Nominee Limited and Idea Perfect Holdings Limited; DW's counterclaims and DW's Statements of Claim in HCA 123/2020 and HCA 221/2020 struck out and those actions dismissed as against the respective plaintiffs; costs to plaintiffs on indemnity basis where contractually provided
Legal Topics
Summary Judgment, Strike Out, Estoppel, Guarantee Enforcement, No Oral Modification Clause, Abuse of Process
Source Language
EN
Contract Civil Procedure Insolvency/receivership Equity Summary Judgment Strike Out Estoppel Guarantee Enforcement +2 more

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Parties

Chow Tai Fook Nominee Limited

Plaintiff in HCA 85/2020 and HCA 86/2020; 1st Defendant in HCA 123/2020 and HCA 221/2020

Diamond City Limited

1st Defendant in HCA 85/2020 (borrower Under Facility)

Gateway Asia Resources Limited

1st Defendant in HCA 86/2020 and 1st Defendant in HCA 92/2020 (borrower Under Loans)

Idea Perfect Holdings Limited

Plaintiff in HCA 92/2020; 2nd Defendant in HCA 123/2020

Wu Wai Leung, Danny

2nd Defendant in HCA 85/2020, HCA 86/2020 and HCA 92/2020; Plaintiff in HCA 123/2020 and HCA 221/2020

Chan Tak Yuen (Allen Chan)

3rd Defendant in HCA 92/2020; 3rd Defendant in HCA 123/2020

Koo Chi Sum

Receiver Appointed Over Gateway Asia and Diamond City; 3rd Defendant in HCA 123/2020; 2nd Defendant in HCA 221/2020

Simon Rhys Thomas

Receiver Appointed Over Gateway Asia and Diamond City; 4th Defendant in HCA 123/2020; 3rd Defendant in HCA 221/2020

Procedural Posture

Civil: Debt Recovery, Declarations, Summary Judgment and Striking Out Applications / Chambers Judgment on Consolidated Summary Judgment and Striking Out Applications

Legal Issues

  1. 1 Whether defendants/guarantor raised any triable issue or arguable defence to debt claims
  2. 2 Whether alleged oral agreement/variations and estoppel prevent repayment/default
  3. 3 Whether counterclaims and separate declaration actions are frivolous or abuse of process

Ratio Decidendi

The court found the alleged oral arrangements and estoppel assertions are overwhelmingly contradicted by detailed contemporaneous written loan agreements, supplemental agreements, securities and communications; the alleged oral variations were invalidated by express no-oral-modification clauses and deeds; therefore defendants/guarantor disclosed no triable issue or arguable defence and the related declaration claims and counterclaims were frivolous/abusive. Summary judgment for the plaintiffs and striking-out of DW's claims and counterclaims were ordered with indemnity costs where contractually provided.

Court Disposition

Summary judgment entered for Chow Tai Fook Nominee Limited and Idea Perfect Holdings Limited; DW's counterclaims and DW's Statements of Claim in HCA 123/2020 and HCA 221/2020 struck out and those actions dismissed as against the respective plaintiffs; costs to plaintiffs on indemnity basis where contractually provided

Orders

  • Summary judgment entered against Diamond City, Gateway Asia and Wu Wai Leung Danny in HCA 85/2020 and HCA 86/2020 in terms of CTFN's summonses
  • DW's counterclaim in HCA 85/2020 and HCA 86/2020 struck out