LAU KOON YING MATTHEW, as the Executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

LAU KOON YING MATTHEW, as the Executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

The Master erred in awarding compound interest because there was insufficient evidence that the defendants had used the sums in trade or obtained profits such that compound interest in lieu of an account of profits was justified; the exercise of discretion was plainly wrong. The appeal was allowed in part: compound interest was replaced with simple interest, the extension of time to appeal was granted limited to the ground on compound interest, and the remainder of the Master's orders were left undisturbed.

Citation
[2020] HKCFI 2107
Parties
Plaintiff (executor of the Estate of LAU YIU Wing): LAU KOON YING MATTHEW; 1st Defendant: LAU TARK WING; 2nd Defendant (in HCA 2305/2012; 3rd Defendant in HCA 2306/2012): WING HING RESOURCES LIMITED; 2nd Defendant (in HCA 2306/2012): CABA RESOURCES LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 August 2020
Case Number
HCA2305/2012
Procedural Posture
Probate and Related Civil Actions Concerning Estates and Fiduciary Accounts; Appeal Against Master's Orders on Taking of Accounts and Interest / Hearing and Judgment on Appeal Including Extension of Time Applications and Variation of Master's Orders
Outcome
Appeal allowed in part. Extension of time to appeal granted limited to the ground challenging compound interest. Master's awards of compound interest set aside and replaced with simple interest; other parts of Master's Orders affirmed.
Legal Topics
Taking of Accounts, Compound Interest, Extension of Time to Appeal, Surcharge and Falsification, Interest Period, Credit for Construction Costs
Source Language
EN
Equity Trusts and Fiduciary Duties Probate Civil Procedure Appeal Taking of Accounts Compound Interest Extension of Time to Appeal +3 more

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Parties

LAU KOON YING MATTHEW

Plaintiff (executor of the Estate of LAU YIU Wing)

LAU TARK WING

1st Defendant

WING HING RESOURCES LIMITED

2nd Defendant (in HCA 2305/2012; 3rd Defendant in HCA 2306/2012)

CABA RESOURCES LIMITED

2nd Defendant (in HCA 2306/2012)

Procedural Posture

Probate and Related Civil Actions Concerning Estates and Fiduciary Accounts; Appeal Against Master's Orders on Taking of Accounts and Interest / Hearing and Judgment on Appeal Including Extension of Time Applications and Variation of Master's Orders

Legal Issues

  1. 1 Whether compound interest was properly awarded in lieu of an account of profits
  2. 2 Whether interest should run from date funds were received (accrual) or from commencement of proceedings given plaintiff delay
  3. 3 Whether construction costs should be credited against sums claimed

Ratio Decidendi

The Master erred in awarding compound interest because there was insufficient evidence that the defendants had used the sums in trade or obtained profits such that compound interest in lieu of an account of profits was justified; the exercise of discretion was plainly wrong. The appeal was allowed in part: compound interest was replaced with simple interest, the extension of time to appeal was granted limited to the ground on compound interest, and the remainder of the Master's orders were left undisturbed.

Court Disposition

Appeal allowed in part. Extension of time to appeal granted limited to the ground challenging compound interest. Master's awards of compound interest set aside and replaced with simple interest; other parts of Master's Orders affirmed.

Orders

  • Extension of time to appeal granted for the appeal on the compound interest ground only
  • Replace compound interest in the Master's Orders with simple interest only (rest of Master's Orders to remain undisturbed)