MAN KING CHUEN AND OTHERS v. HONG LOK YUEN INTERNATIONAL SCHOOL ASSOCIATION LTD AND ANOTHER

MAN KING CHUEN AND OTHERS v. HONG LOK YUEN INTERNATIONAL SCHOOL ASSOCIATION LTD AND ANOTHER

The court found the 1st Agreement never validly passed title and, on the facts, had been frustrated and abandoned by 1987 so it was unenforceable and its registration could be vacated; D1 occupied Portions B and C with D2's permission (licence) and lacked animus to found adverse possession; D2, as developer and subsequent overholding tenant after expiry of P6 leases, had factual possession and animus in respect of the Subject Lot and the limitation period had run such that Ps obtained vacant possession; however applying Leung Kuen Fai and expert evidence on tso customary law the Plaintiffs' proprietary rights were not extinguished by births of new members so Ps recover possession and...

Citation
[2023] HKCFI 1435
Parties
Plaintiffs: Man King Chuen et al (1st–7th Plaintiffs); 1st Defendant (hca 299) / D1 (hca 1463): International College Hong Lok Yuen Association Limited (formerly Hong Lok Yuen School/Hong Lok Yuen Association); 2nd Defendant / D2: Hong Lok Yuen Estates Limited (in voluntary liquidation); Defendant (estate): Personal representative(s) of Wai Tze Hang Alex (deceased)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 May 2023
Case Number
HCA299/2011
Procedural Posture
Civil — Land/trespass, Property, Declarations and Adverse Possession / Trial and Judgment (court of First Instance; Judgment 29 May 2023)
Outcome
Judgment for Plaintiffs. Declarations that the 1st Agreement never validly passed title and had been frustrated and abandoned by 1987; registration of both Agreements vacated; Plaintiffs awarded vacant possession of the Subject Lot; damages/mesne profit awarded from 23 February 2005; counterclaims of both defendants...
Legal Topics
Vacation of Registered Instruments, Validity and Enforceability of Sale Agreements, Frustration and Abandonment of Contract, Res Judicata and Expert Evidence on Customary Law, Doctrine of Encroachment, Animus Possidendi and Factual Possession, Limitation Ordinance Ss7, 8, 10, 22, Mesne Profit/damages
Source Language
EN
Property Law Land Registration Adverse Possession Contract Law Limitation Law Chinese Customary Law Trusts and Equitable Interests Civil Procedure (amendment/pleading) +8 more

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Parties

Man King Chuen et al (1st–7th Plaintiffs)

Plaintiffs

International College Hong Lok Yuen Association Limited (formerly Hong Lok Yuen School/Hong Lok Yuen Association)

1st Defendant (hca 299) / D1 (hca 1463)

Hong Lok Yuen Estates Limited (in voluntary liquidation)

2nd Defendant / D2

Personal representative(s) of Wai Tze Hang Alex (deceased)

Defendant (estate)

Procedural Posture

Civil — Land/trespass, Property, Declarations and Adverse Possession / Trial and Judgment (court of First Instance; Judgment 29 May 2023)

Legal Issues

  1. 1 Whether the 1st sale agreement (18 Feb 1981) was null and void, terminated, rescinded, frustrated or abandoned and whether the purchaser's capacity to complete lapsed
  2. 2 Whether registration of the 1st and 2nd Agreements should be vacated
  3. 3 Whether D1 established adverse possession in respect of Portions B and C

Ratio Decidendi

The court found the 1st Agreement never validly passed title and, on the facts, had been frustrated and abandoned by 1987 so it was unenforceable and its registration could be vacated; D1 occupied Portions B and C with D2's permission (licence) and lacked animus to found adverse possession; D2, as developer and subsequent overholding tenant after expiry of P6 leases, had factual possession and animus in respect of the Subject Lot and the limitation period had run such that Ps obtained vacant possession; however applying Leung Kuen Fai and expert evidence on tso customary law the Plaintiffs' proprietary rights were not extinguished by births of new members so Ps recover possession and...

Court Disposition

Judgment for Plaintiffs. Declarations that the 1st Agreement never validly passed title and had been frustrated and abandoned by 1987; registration of both Agreements vacated; Plaintiffs awarded vacant possession of the Subject Lot; damages/mesne profit awarded from 23 February 2005; counterclaims of both defendants...

Orders

  • Declaration that the 1st Agreement never validly passed title to Alex Wai and that the owners are no longer bound by it
  • Declaration that the 1st Agreement was frustrated and abandoned by 1987