Hong Kong Case Law: Decisions & Judgments

Topic

Facility letter interpretation

Legal area

Court

16 Mar 2007

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD v. YANG WAI MAN

Citation

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD v. YANG WAI MAN
Court

Court of First Instance
Case number

HCMP1003/2006

Term 6 of the Facility Letter was not incorporated into the Charge because Clause 3(a) and the defined 'Sum' did not clearly provide for interest on sums due but not paid or for capitalisation; accordingly the claims for overdue (late payment) interest (both on instalments and on outstanding principal) and for capitalisation were disallowed; only the outstanding principal and contractual interest as provided by the Charge were recoverable and the earlier order was varied accordingly.
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4300/1983

Facility Letters construed as offering term loans subject to an express reservation allowing the lenders at their sole discretion to reduce or withdraw the facility at or after the review date, making loans callable; defendants did not establish triable issues from express or implied terms or election defence generally; triable issues do exist concerning loans made to acquire Paliburg shares and as to consideration for certain guarantees; where no triable issue exists plaintiffs entitled to summary judgment for principal sums claimed and default judgments are set aside only where appropriate.
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4305/1983

The Facility Letters, construed commercially, permitted the lenders to reduce or withdraw facilities and to call loans after review dates; no implied term prevented call-in without notice; the plaintiffs' earlier fraud action did not amount to an irrevocable election to repudiate the loans; however triable issues exist as to loans advanced for purchase of Paliburg shares and as to consideration for guarantees, therefore summary judgment is appropriate in those actions where no triable issue arises and unconditional leave to defend must be given where triable issues exist.
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4327/1983

Facility Letters reserved the lenders a discretion to reduce, withdraw or call in facilities and the review date did not create an absolute obligation to maintain the loan for a fixed term; no implied terms prevented the lenders calling the loans or required notice; pleading of tort claims in earlier proceedings did not amount to an irrevocable election to repudiate the loan contracts; triable issues existed concerning Paliburg share-purchase arrangements and consideration for certain guarantees; where no triable issue was raised plaintiffs were entitled to summary judgment for principal sums…

Hong Kong Case Law

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD v. YANG WAI MAN

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS