Hong Kong Case Law: Decisions & Judgments

Topic

Bona fide change of position

Legal area

Court

27 Sept 2024

CHEUNG YIU LEUNG v. CHEUNG CHONG MONEY EXCHANGE O/B CHEUNG CHONG LTD AND OTHERS

Citation

[2024] HKDC 1596
Court

District Court
Case number

DCCJ3533/2021

Court found plaintiff paid under an operative mistake of fact (mistaken belief as to identity/authority of payee and that payment was a refundable bank deposit). The 1st defendant failed to establish bona fide change of position because it acted in a commercially unacceptable manner and breached statutory AML/CDD obligations (Schedule 2 ss.2,3,23 of Cap.615), causing the outbound transfer. Therefore restitution of $400,000 was ordered with interest and costs to plaintiff.
26 Jul 2022

張侃 v. 尚品滙(香港)國際貿易有限公司

Citation

[2022] HKDC 731
Court

District Court
Case number

DCCJ4405/2019

Chen had no actual or apparent authority to bind the company to the loan; the use of company chops did not constitute a representation sufficient for apparent authority in the circumstances; section 117 does not apply to a single director acting alone; the defendant was only a ministerial recipient and thus not unjustly enriched and had no bona fide change of position; plaintiff's claim is dismissed and the defendant's counterclaim for US$200,000 succeeds; third party claim against Chen survives as a cause but no substantive relief ordered except costs.
14 Jan 2020

SEYMOUR ENTERPRISES LTD v. LEAD CREATION INTERNATIONAL LTD

Citation

[2019] HKDC 1684
Court

District Court
Case number

DCCJ602/2017

The court found on the facts that the defendant was unjustly enriched at the expense of the plaintiff, the plaintiff suffered the loss directly (not merely reflective of Airchal) so the no reflective loss principle did not apply, and the defendant failed to establish bona fide change of position because its agents acted unreasonably and failed to make enquiries; therefore the plaintiff is entitled to restitution of €96,500 with interest and costs.
31 Jan 2019

XING FA (HONG KONG) IMP. & EXP. LTD v. SUNGSAN INTERNATIONAL CO., LTD

Citation

[2019] HKCFI 271
Court

Court of First Instance
Case number

HCA2511/2018

The court held that the plaintiff established a good arguable case in money had and received rooted in a fraudulent scheme involving forged documents; the defendant was a participant and had at least been enriched; there was a real risk of dissipation of assets given the payment arrangements and defendant's conduct; the plaintiff did not commit material non-disclosure sufficient to vitiate the ex parte order. Therefore the worldwide Injunction Order was extended on similar terms until trial or further order and the defendant's application to discharge or vary the injunction was dismissed with…
29 Jun 2016

GLOBENET DROID LTD v. HONG KONG HANG LUNG ELECTRONIC COMPANY (A FIRM)

Citation

GLOBENET DROID LTD v. HONG KONG HANG LUNG ELECTRONIC COMPANY (A FIRM)
Court

District Court
Case number

DCCJ3288/2013

The plaintiff paid US$104,246.00 under an operative mistake induced by fraudulent emails; the defendant was enriched at the plaintiff's expense; the defendant failed to act in good faith because the large, unusual excess payment and subsequent refund instructions gave grounds for inquiry which the defendant did not make and thus the change of position defence fails; accordingly restitution of US$104,246.00 (plus interest and costs) is ordered.

Hong Kong Case Law

CHEUNG YIU LEUNG v. CHEUNG CHONG MONEY EXCHANGE O/B CHEUNG CHONG LTD AND OTHERS

張侃 v. 尚品滙(香港)國際貿易有限公司

SEYMOUR ENTERPRISES LTD v. LEAD CREATION INTERNATIONAL LTD

XING FA (HONG KONG) IMP. & EXP. LTD v. SUNGSAN INTERNATIONAL CO., LTD

GLOBENET DROID LTD v. HONG KONG HANG LUNG ELECTRONIC COMPANY (A FIRM)