TAIYO KOGYO CO, LTD v. UBS AG AND ANOTHER

TAIYO KOGYO CO, LTD v. UBS AG AND ANOTHER

The court found on the evidence that the account was opened and the funds credited for the plaintiff's benefit, declared that the funds currently held in the named UBS account were monies held by Mr Shohei Suto on trust for the plaintiff, and ordered that the defendants' costs be paid out of the funds and taxed on a trustee basis with the bank entitled to deduct its costs before payment to the plaintiff.

Citation
TAIYO KOGYO CO, LTD v. UBS AG AND ANOTHER
Parties
Plaintiff: TAIYO KOGYO CO., LTD.; 1st Defendant: UBS AG; 2nd Defendant: TOSHIKO SUTO
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 August 2006
Case Number
HCMP1097/2006
Procedural Posture
Miscellaneous Proceedings (hcmp 1097/2006) Under the Trustee Ordinance / Judgment (court of First Instance)
Outcome
Declaration granted that the funds currently held in the specified Japanese Yen account with UBS AG in the name of Mr Shohei Suto (now deceased) were monies held by Mr Shohei on trust for the plaintiff; orders made for payment and costs out of the funds.
Legal Topics
Declaration of Trust, Trustee Costs, Beneficiary Entitlement, Funds Held in Bank Account, Trustee Ordinance Ss.52 and 57
Source Language
EN
Trusts Probate and Estates Banking Equity Declaration of Trust Trustee Costs Beneficiary Entitlement Funds Held in Bank Account +1 more

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Parties

TAIYO KOGYO CO., LTD.

Plaintiff

UBS AG

1st Defendant

TOSHIKO SUTO

2nd Defendant

Procedural Posture

Miscellaneous Proceedings (hcmp 1097/2006) Under the Trustee Ordinance / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the funds in the UBS account were held by Mr Shohei Suto on trust for the plaintiff
  2. 2 Whether the plaintiff is entitled to a declaration and payment of the funds
  3. 3 Whether the bank's and the 2nd defendant's costs are payable out of the funds and on what basis

Ratio Decidendi

The court found on the evidence that the account was opened and the funds credited for the plaintiff's benefit, declared that the funds currently held in the named UBS account were monies held by Mr Shohei Suto on trust for the plaintiff, and ordered that the defendants' costs be paid out of the funds and taxed on a trustee basis with the bank entitled to deduct its costs before payment to the plaintiff.

Court Disposition

Declaration granted that the funds currently held in the specified Japanese Yen account with UBS AG in the name of Mr Shohei Suto (now deceased) were monies held by Mr Shohei on trust for the plaintiff; orders made for payment and costs out of the funds.

Orders

  • Declaration that the funds currently held in a Japanese Yen account (Account No.: 0/212, 371/02, 07) with UBS AG's branch in Hong Kong in the name of Mr Shohei Suto (now deceased) were monies held by Mr Shohei Suto prior to his death on 6 September 2004 on trust for the Plaintiff.
  • Order that the 1st defendant's costs of and occasioned by the originating summons be paid out from the funds in the account to be taxed on a trustee basis and that the 1st defendant be allowed to deduct such costs from the funds before paying the same to the plaintiff.