TIEN SAU TONG MEDICINE COMPANY (HONG KONG) LTD 對 張寶靈及另二人

TIEN SAU TONG MEDICINE COMPANY (HONG KONG) LTD 對 張寶靈及另二人

The court found on balance that production and packaging of the product were carried out with the director's knowledge or authorization and therefore defendants 1 and 3 were not liable for unauthorised production or misapplication of company funds; however the court found defendants 1 and 3 did sell unregistered...

Source-derived case information.

Citation
[2024] HKDC 1114
Parties
Plaintiff: TIEN SAU TONG MEDICINE COMPANY (HONG KONG) LIMITED; Defendant: CHEUNG PO LING (張寶靈); Defendant: TSANG KWOK KEUNG (曾國強); Defendant: WU CHI ON (胡志安)
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
17 July 2024
Case Number
DCCJ5670/2018
Procedural Posture
Civil Claim (fiduciary Duty / Employment) / Judgment After Trial
Outcome
Plaintiff's claims against first and third defendants dismissed
Legal Topics
Misappropriation of Trade Secrets/recipes, Breach of Fiduciary Duty, Unauthorised Use of Company Funds, Account of Profits, Injunctive Relief, Sale of Unregistered Medicinal Products, Evidence (weight of Contemporaneous Documents)
Source Language
ch
Employment Law Fiduciary Duties Company/commercial Law Remedies Misappropriation of Trade Secrets/recipes Breach of Fiduciary Duty Unauthorised Use of Company Funds Account of Profits +3 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 5 Authorities cited 3 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

TIEN SAU TONG MEDICINE COMPANY (HONG KONG) LIMITED

Plaintiff

CHEUNG PO LING (張寶靈)

Defendant

TSANG KWOK KEUNG (曾國強)

Defendant

WU CHI ON (胡志安)

Defendant

Procedural Posture

Civil Claim (fiduciary Duty / Employment) / Judgment After Trial

  1. 1 Whether defendants 1 and 3 produced and packaged the plaintiff's secret recipe (the 'original formula') in the plaintiff's name without authorization
  2. 2 Whether defendants 1 and 3 misappropriated company funds to produce and package the product and appropriated profits
  3. 3 Whether the plaintiff suffered loss and the quantum of damages if liability established

Ratio Decidendi

The court found on balance that production and packaging of the product were carried out with the director's knowledge or authorization and therefore defendants 1 and 3 were not liable for unauthorised production or misapplication of company funds; however the court found defendants 1 and 3 did sell unregistered product without proper prescription but the plaintiff failed to prove defendants appropriated profits or caused provable loss; consequently the plaintiff's claims against defendants 1 and 3 are dismissed and no account of profits is ordered.

Court Disposition

Plaintiff's claims against first and third defendants dismissed

Orders

  • Plaintiff to pay the costs of defendants 1 and 3 including all reserved costs
  • If parties cannot agree on costs the amount to be assessed by the court