STANDARD CHARTERED BANK (HONG KONG) LTD v. GOLDENWICK LTD

STANDARD CHARTERED BANK (HONG KONG) LTD v. GOLDENWICK LTD

Goldenwick failed to satisfactorily answer Requisition 12: the 1999 mortgage did not create a legal estate in the Entrance Hall and 1/F portions (it was at best a chose in action/equitable interest), section 53 CPO did not operate to pass good legal title by the mortgagee sale, parts of the Entrance Hall and 1/F portions were common services/right of way under the Sub-DMC and the mere proviso 'sold subject to Sub-DMC' was insufficient disclosure of latent title defects; accordingly Goldenwick had not shown good title and SCB validly rescinded the agreements and was entitled to return of deposits and specified costs.

Citation
STANDARD CHARTERED BANK (HONG KONG) LTD v. GOLDENWICK LTD
Parties
Plaintiff in Hca2634; Defendant in HCA2645: Goldenwick Limited; Plaintiff in Hca2645; Defendant in HCA2634: Standard Chartered Bank (Hong Kong) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 March 2008
Case Number
HCA2645/2004
Procedural Posture
Conveyancing Dispute (consolidated Actions Hca2634/2004 & Hca2645/2004) / Judgment at Trial (court of First Instance)
Outcome
Judgment for Standard Chartered Bank; Goldenwick's claims dismissed; declaration of rescission granted to SCB
Legal Topics
Title Defects, Requisitions on Title, Misrepresentation and Inducement, Mortgagee Power of Sale, Duty of Disclosure, Common Parts and Easements
Source Language
EN
Property Law Conveyancing Contract Law Equity Land Registration Title Defects Requisitions on Title Misrepresentation and Inducement +3 more

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Parties

Goldenwick Limited

Plaintiff in Hca2634; Defendant in HCA2645

Standard Chartered Bank (Hong Kong) Limited

Plaintiff in Hca2645; Defendant in HCA2634

Procedural Posture

Conveyancing Dispute (consolidated Actions Hca2634/2004 & Hca2645/2004) / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 Whether alleged oral misrepresentations induced entry into agreements
  2. 2 Whether documents shown as deeds pending registration (Missing Documents) affected title
  3. 3 Whether the 1999 mortgage constituted a mortgage of land under Conveyancing & Property Ordinance s53(1) so that a mortgagee sale passed good legal title

Ratio Decidendi

Goldenwick failed to satisfactorily answer Requisition 12: the 1999 mortgage did not create a legal estate in the Entrance Hall and 1/F portions (it was at best a chose in action/equitable interest), section 53 CPO did not operate to pass good legal title by the mortgagee sale, parts of the Entrance Hall and 1/F portions were common services/right of way under the Sub-DMC and the mere proviso 'sold subject to Sub-DMC' was insufficient disclosure of latent title defects; accordingly Goldenwick had not shown good title and SCB validly rescinded the agreements and was entitled to return of deposits and specified costs.

Court Disposition

Judgment for Standard Chartered Bank; Goldenwick's claims dismissed; declaration of rescission granted to SCB

Orders

  • Declaration that the Provisional Agreement (6 September 2004) and the Agreement (3 November 2004) were validly terminated or rescinded
  • Repayment of deposits to Standard Chartered Bank in the total sum of HK$2580000