Hong Kong Case Law: Decisions & Judgments

Topic

Constructive and resulting trusts

Legal area

Court

25 Mar 2022

SHUN ON FINANCE LTD v. WONG FUNG KWAN AND ANOTHER

Citation

[2022] HKDC 240
Court

District Court
Case number

DCMP1428/2016

On the balance of probabilities the plaintiff did not act in collusion with the intermediary; however the Loan Agreement breached s.18(2)(j) and contained other minor non-compliances such that it is equitable to declare the agreement unenforceable except to the extent that HK$200,000 remains enforceable; the court found a common intention constructive trust in favour of the 2nd defendant dating from 30 April 2007; the plaintiff had constructive notice of the 2nd defendant's beneficial interest because it failed to conduct reasonable enquiries and inspect occupation, so the 2nd defendant's ben…
25 Jun 2021

LEE CHI HANG AND OTHERS v. WELL DONE GARMENT FACTORY LTD AND ANOTHER

Citation

[2021] HKCFI 1835
Court

Court of First Instance
Case number

HCA227/2012

Court found on the balance of credible contemporaneous evidence that (1) the 1996 allotment was valid with consent of WSL and WWC; (2) the 2001 share transfers were valid because WC had capacity and both WSL and WWC knew of and agreed to the transfers as part of WC's Scheme to transfer assets to WYW; (3) the sums claimed as loans by plaintiffs originated from WYW's Macau account and were entrusted to WWC to apply, therefore plaintiffs' loan claims fail but WWC's estate must account for an unaccounted balance (HK$2,569,000); (4) Well Done is entitled to repayment of the MPF overpayment; (5) Ne…
31 Jan 2018

張才奎所託管中國山水投資有限公司股份相關員工 AND OTHERS v. 張才奎 AND ANOTHER

Citation

[2018] HKCFI 195
Court

Court of First Instance
Case number

HCA939/2015

The court held that the participating employees were the actual contributors and equitable owners of the relevant interests, that on 11 April 2005 an equitable/fixed trust in favour of the employees over 617,669 CSI shares arose (such that 456,325 shares are held for the plaintiffs in specified proportions), that the later BVI discretionary trusts executed in November 2005 could not validly resettle or defeat the pre-existing fixed trusts without informed consent, and that the 2008 Confirmation did not constitute informed ratification of BVI discretionary trusts; accordingly a declaration and…
30 Nov 2017

DEXTRA CHINA LTD AND ANOTHER v. LAM WING KIT

Citation

DEXTRA CHINA LTD AND ANOTHER v. LAM WING KIT
Court

Court of First Instance
Case number

HCMP1852/2015

The Siblings failed to demonstrate an arguable bona fide claim to a beneficial interest because their case before the master consisted of unsupported assertions and they had access to contemporaneous documents which they did not produce; the fresh documents tendered on appeal could and should have been produced below and thus fail Ladd v Marshall's first condition; accordingly joinder and stay were properly refused and the Tomlin Order's registration, which was used to obstruct enforcement by non-parties, was an abuse of process and must be vacated.
16 Dec 2016

CWML v. WYK H LTD

Citation

CWML v. WYK H LTD
Court

Family Court
Case number

FCMC14552/2013

On the balance of probabilities the documentary and contemporaneous evidence (cheques, cashier's order, payroll forms, apportionment accounts, mortgage statements and produced title deeds) and credibility findings established that the 1st Intervener paid the agreed HK$6,500,000 consideration and met ongoing mortgage obligations under the March 1999 oral agreement; accordingly the 1st Intervener acquired the beneficial interest in Flat 16C and car park L1-13. Separately, evidence established that the 1st Intervener wholly funded the purchase of IR property through H Limited and is its sole ben…
20 Nov 2015

RHONDA JEANINE POHN v. MAC RICHARD POHN AND OTHERS

Citation

RHONDA JEANINE POHN v. MAC RICHARD POHN AND OTHERS
Court

Court of First Instance
Case number

HCA1381/2010

The 1st Defendant failed to discharge the burden of proving that Chatham's transfer conveyed the beneficial interest; contemporaneous documents and subsequent conduct show the Father retained beneficial ownership and control of Leeward, so the transfer conveyed legal title only and the share is held by Goldern as nominee on trust for the Father; therefore the Plaintiff as executrix is entitled to relief (no need to decide Californian law issues).
23 Sept 2014

LO MAN KAM v. LAW MAN WAI

Citation

LO MAN KAM v. LAW MAN WAI
Court

Court of Appeal
Case number

CACV250/2013

Although the express trust failed for uncertainty and the gift was not legally perfected, the Court of Appeal held that estoppel by convention precluded Wai from denying that the monies (including the HK$8.3m used to purchase two properties) were gifts from the deceased intended to be shared with Kam; the Recorder’s factual findings as to the parties’ conduct and oral evidence were not plainly wrong and support the application of estoppel, so Sim’s title to the properties stands and Wai is estopped from asserting contrary rights.
27 Feb 2014

CHAN CHI CHING AND ANOTHER v. CHEUNG WING HING DAVID

Citation

CHAN CHI CHING AND ANOTHER v. CHEUNG WING HING DAVID
Court

Court of First Instance
Case number

HCA1364/2012

The defendant's pleaded beneficial ownership does not confer a right to possess the HOS flat during the statutory restriction period; the plaintiffs, as registered owners, are entitled to possession and to order interim payments for the defendant's continued occupation; illegality of any licence does not prevent the plaintiffs recovering possession as their claim does not depend on that licence.
3 Jan 2013

MENFOND ELECTRONIC ART & COMPUTER DESIGN CO LTD v. WONG WANG TAT VICTOR AND ANOTHER

Citation

MENFOND ELECTRONIC ART & COMPUTER DESIGN CO LTD v. WONG WANG TAT VICTOR AND ANOTHER
Court

Court of First Instance
Case number

HCA293/2011

The court held that the allegations in the statement of claim did not amount to an allegation of fraud that would invoke Order 14 r.1(2)(b) to bar summary judgment; on the facts Victor held the domain and website for the plaintiff (plaintiff paid for and used them in the course of business) so there was no credible defence to beneficial ownership; the plaintiff established the trinity for passing-off (distinctive goodwill, misrepresentation by defendants, likelihood of damage); accordingly summary judgment was entered for the plaintiff and injunctive/proprietary relief and costs were ordered…