UBS AG v. STAND FORD INTERNATIONAL ENTERPRISES LTD. AND OTHERS

UBS AG v. STAND FORD INTERNATIONAL ENTERPRISES LTD. AND OTHERS

The court held that recoveries totaling US$1,399,446.10 must be deducted from the plaintiff's claimed principal of US$1,958,622.66 leaving a principal due of US$559,176.56; recovered sums should be appropriated to outstanding principal (not to accrued interest) to avoid compounding; interest is to be simple and computed at the UBS US dollar borrowing rate on the principal sum from time to time outstanding to the date of judgment and thereafter at the judgment rate; compound interest is refused; costs payable by the 3rd defendant include taxed costs of proceedings against the 2nd and 4th defendants and Stand Ford and are to be assessed on a common fund basis; plaintiff to prepare draft...

Citation
UBS AG v. STAND FORD INTERNATIONAL ENTERPRISES LTD. AND OTHERS
Parties
Plaintiff: UBS AG; 1st Defendant: STAND FORD INTERNATIONAL ENTERPRISES LIMITED; 2nd Defendant: ING PETR VYPLEL; 3rd Defendant: WONG CHEE KING; 4th Defendant: MIROSLAV KRIZ
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 August 2002
Case Number
HCCL45/2000
Procedural Posture
Commercial Action (knowing Assistance / Constructive Trust) / Judgment on Quantum, Interest and Costs Following Liability Finding
Outcome
Judgment for the plaintiff against the 3rd defendant for US$559,176.56 plus interest; interest to be simple at the UBS US dollar borrowing rate on principal outstanding to date of judgment and thereafter at the judgment rate; compound interest refused; costs payable by the 3rd defendant to be taxed on a common fund...
Legal Topics
Constructive Trust, Knowing Assistance, Set Off and Recovery, Interest (pre Judgment and Post Judgment), Appropriation of Payments, Costs (common Fund Vs Indemnity Vs Party and Party), Settlement Agreements
Source Language
EN
Equity Trusts Commercial Law Civil Procedure Costs Constructive Trust Knowing Assistance Set Off and Recovery +4 more

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Parties

UBS AG

Plaintiff

STAND FORD INTERNATIONAL ENTERPRISES LIMITED

1st Defendant

ING PETR VYPLEL

2nd Defendant

WONG CHEE KING

3rd Defendant

MIROSLAV KRIZ

4th Defendant

Procedural Posture

Commercial Action (knowing Assistance / Constructive Trust) / Judgment on Quantum, Interest and Costs Following Liability Finding

Legal Issues

  1. 1 Whether recoveries by the plaintiff from other parties reduce the damages payable by the 3rd defendant and to what extent
  2. 2 Whether the costs element included in a global settlement should be attributed to the plaintiff's recovery for set-off against the 3rd defendant
  3. 3 Appropriate method of appropriation of recovered sums (towards interest first or principal first)

Ratio Decidendi

The court held that recoveries totaling US$1,399,446.10 must be deducted from the plaintiff's claimed principal of US$1,958,622.66 leaving a principal due of US$559,176.56; recovered sums should be appropriated to outstanding principal (not to accrued interest) to avoid compounding; interest is to be simple and computed at the UBS US dollar borrowing rate on the principal sum from time to time outstanding to the date of judgment and thereafter at the judgment rate; compound interest is refused; costs payable by the 3rd defendant include taxed costs of proceedings against the 2nd and 4th defendants and Stand Ford and are to be assessed on a common fund basis; plaintiff to prepare draft...

Court Disposition

Judgment for the plaintiff against the 3rd defendant for US$559,176.56 plus interest; interest to be simple at the UBS US dollar borrowing rate on principal outstanding to date of judgment and thereafter at the judgment rate; compound interest refused; costs payable by the 3rd defendant to be taxed on a common fund...

Orders

  • Principal sum due by 3rd defendant: US$559,176.56
  • Recovered sums totaling US$1,399,446.10 to be set off against plaintiff's claim prior to interest calculation