LOYAL HOPE LTD v. LEUNG PUI MING AND OTHERS

LOYAL HOPE LTD v. LEUNG PUI MING AND OTHERS

Although the plaintiff's initial demand for production of originals beyond 15 years was not a valid requisition, the defendants nonetheless failed to give good title because they could not supply satisfactory statutory declaration or original deeds for missing pre-15-year instruments; contractual clauses did not clearly displace the vendors' common law obligation to deliver originals for documents not in the vendors' possession; therefore plaintiff validly rescinded and is entitled to return of deposits and damages to be quantified.

Citation
LOYAL HOPE LTD v. LEUNG PUI MING AND OTHERS
Parties
Purchaser: Plaintiff; Vendors (tenants in Common): Defendants
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 March 2008
Case Number
HCA136/2007
Procedural Posture
Order 86 Application (civil Property/conveyancing) / Application Hearing Before Master of the High Court (post Pleadings)
Outcome
Application granted in part: declaration of rescission; order for return of deposit; damages awarded subject to assessment; costs nisi for plaintiff with certificate for counsel; liberty to apply on quantum
Legal Topics
Title Requisition, Delivery of Title Deeds, Statutory Declaration for Lost Deeds, Rescission for Failure to Give Title, Deposit Recovery, Conveyancing and Property Ordinance S13
Source Language
EN
Property Law Contract Law Conveyancing Title Requisition Delivery of Title Deeds Statutory Declaration for Lost Deeds Rescission for Failure to Give Title Deposit Recovery +1 more

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Parties

Plaintiff

Purchaser

Defendants

Vendors (tenants in Common)

Procedural Posture

Order 86 Application (civil Property/conveyancing) / Application Hearing Before Master of the High Court (post Pleadings)

Legal Issues

  1. 1 Whether the plaintiff raised a proper requisition for original title documents beyond 15 years
  2. 2 Whether the defendants failed to give good title to the property
  3. 3 Whether the proposed statutory declaration sufficed to account for missing title deeds

Ratio Decidendi

Although the plaintiff's initial demand for production of originals beyond 15 years was not a valid requisition, the defendants nonetheless failed to give good title because they could not supply satisfactory statutory declaration or original deeds for missing pre-15-year instruments; contractual clauses did not clearly displace the vendors' common law obligation to deliver originals for documents not in the vendors' possession; therefore plaintiff validly rescinded and is entitled to return of deposits and damages to be quantified.

Court Disposition

Application granted in part: declaration of rescission; order for return of deposit; damages awarded subject to assessment; costs nisi for plaintiff with certificate for counsel; liberty to apply on quantum

Orders

  • Declaration that the agreement dated 12 October 2006 be rescinded and plaintiff relieved of further performance
  • Return of the deposit of HK$750,000 to the plaintiff