YIP WAI HUNG v. LEUNG NGA SZE AND ANOTHER

YIP WAI HUNG v. LEUNG NGA SZE AND ANOTHER

The court declared the 1st defendant held 1,500 shares on trust for the plaintiff but found the plaintiff failed to prove the HK$178,500 advancements were enforceable loans; accordingly the claim against the 2nd defendant was dismissed and damages were limited to the sale proceeds of HK$1,500 plus interest; costs orders were made on an order nisi basis.

Citation
YIP WAI HUNG v. LEUNG NGA SZE AND ANOTHER
Parties
Plaintiff: Yip Wai Hung; 1st Defendant: Leung Nga Sze; 2nd Defendant: PACW Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
26 January 2016
Case Number
DCCJ990/2013
Procedural Posture
Civil Action (trust and Company Law) / Judgment
Outcome
Declaration for plaintiff against 1st defendant in respect of 1,500 trust shares; claim against 2nd defendant dismissed.
Legal Topics
Constructive Trust, Shareholder Loans, Characterisation of Contributions, Damages Assessment, Declaration, Costs
Source Language
EN
Trusts Company Law Contract Law Civil Procedure Constructive Trust Shareholder Loans Characterisation of Contributions Damages Assessment +2 more

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Parties

Yip Wai Hung

Plaintiff

Leung Nga Sze

1st Defendant

PACW Limited

2nd Defendant

Procedural Posture

Civil Action (trust and Company Law) / Judgment

Legal Issues

  1. 1 Whether the 1st defendant held 1,500 shares on trust for the plaintiff and what damages are payable for their dissipation
  2. 2 Whether the plaintiff's two advancements totalling HK$178,500 were enforceable debts (shareholder loans) against the 2nd defendant

Ratio Decidendi

The court declared the 1st defendant held 1,500 shares on trust for the plaintiff but found the plaintiff failed to prove the HK$178,500 advancements were enforceable loans; accordingly the claim against the 2nd defendant was dismissed and damages were limited to the sale proceeds of HK$1,500 plus interest; costs orders were made on an order nisi basis.

Court Disposition

Declaration for plaintiff against 1st defendant in respect of 1,500 trust shares; claim against 2nd defendant dismissed.

Orders

  • Declaration that the 1st defendant held 1,500 shares of the 2nd defendant on trust for the plaintiff from 30 December 2010 until the 1st defendant's unauthorised dissipation of the same
  • Order that the 1st defendant pay damages to the plaintiff in the sum of HK$1,500