YEUNG CHIU SING RICKY AND ANOTHER v. TSUI TACK KONG

YEUNG CHIU SING RICKY AND ANOTHER v. TSUI TACK KONG

The parties contractually agreed that EY's independent opinion would be authoritative on the deferred tax dispute; EY's report adhered to the engagement letter and expressly addressed the balancing charge and deferred tax accounting issues, concluding no balancing charge on a share sale and that only a negligible deferred tax asset existed; the defendant failed to show any material departure by EY or any triable issue supported by contemporaneous evidence; accordingly summary judgment was entered for plaintiffs to release HK$639,835 with interest and the defendant's counterclaim was dismissed.

Citation
[2021] HKDC 582
Parties
1st Plaintiff: Yeung Chiu Sing Ricky; 2nd Plaintiff: Super Park International Limited; Defendant: Tsui Tack Kong
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
1 June 2021
Case Number
DCCJ6755/2019
Procedural Posture
Civil Action (summary Judgment Application) / Appeal From Master's Orders; Hearing in Chambers; Judgment on Summary Judgment
Outcome
Appeal allowed in part: Master’s orders set aside; summary judgment for plaintiffs; defendant's counterclaim dismissed; costs ordered nisi in plaintiffs' favour
Legal Topics
Summary Judgment, Expert Determination, Deferred Tax, Commercial Building Allowance, Estoppel by Convention, Stakeholder/escrow Release, Breach of Agreement
Source Language
EN
Contract Civil Procedure Company Law Tax Law Evidence Summary Judgment Expert Determination Deferred Tax +4 more

Case Brief

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Parties

Yeung Chiu Sing Ricky

1st Plaintiff

Super Park International Limited

2nd Plaintiff

Tsui Tack Kong

Defendant

Procedural Posture

Civil Action (summary Judgment Application) / Appeal From Master's Orders; Hearing in Chambers; Judgment on Summary Judgment

Legal Issues

  1. 1 Whether the parties agreed EY's opinion to be authoritative/final and binding
  2. 2 Whether EY's opinion addressed the disputed question whether the disputed deferred tax constituted a liability
  3. 3 Whether the EY opinion departed from its instructions

Ratio Decidendi

The parties contractually agreed that EY's independent opinion would be authoritative on the deferred tax dispute; EY's report adhered to the engagement letter and expressly addressed the balancing charge and deferred tax accounting issues, concluding no balancing charge on a share sale and that only a negligible deferred tax asset existed; the defendant failed to show any material departure by EY or any triable issue supported by contemporaneous evidence; accordingly summary judgment was entered for plaintiffs to release HK$639,835 with interest and the defendant's counterclaim was dismissed.

Court Disposition

Appeal allowed in part: Master’s orders set aside; summary judgment for plaintiffs; defendant's counterclaim dismissed; costs ordered nisi in plaintiffs' favour

Orders

  • Set aside the Orders of the Master dated 2 December 2020
  • Summary judgment entered for the plaintiffs: declaration that plaintiffs are entitled to release of HK$639,835 (held by Messrs Wat & Co) to them or as they direct