Hong Kong Case Law: Decisions & Judgments

Topic

Liquidation of positions

Legal area

Court

7 Mar 2001

BHAGWAN SHANKARDAS MOORJANI v. THE KA WAH BANK LTD.

Citation

BHAGWAN SHANKARDAS MOORJANI v. THE KA WAH BANK LTD.
Court

Court of Appeal
Case number

CACV116/2000

Clause 3.2 must be construed so that 'the relevant Margin' refers to amounts deposited (not reduced by floating losses) while 'the then current value of the relevant Contract' reflects trading losses; accordingly the bank was not entitled to deduct floating trading losses from the margin or to make the additional margin call that would have authorised squaring off, and no implied term justified the bank's conduct; appeal allowed and judgment for plaintiff.
16 Jul 1990

RICHARDSON GREENSHIELDS OF CANADA (PACIFIC) LTD v. ONG YIP CHUNG HENRY AND ANOTHER

Citation

RICHARDSON GREENSHIELDS OF CANADA (PACIFIC) LTD v. ONG YIP CHUNG HENRY AND ANOTHER
Court

Court of First Instance
Case number

HCA8573/1987

On the facts the court found no reliable evidence that the account was jointly held so the 1st Defendant was not liable; the 2nd Defendant was the sole account holder, the broker did not breach any duty causally causing loss by failing to liquidate or by omission of a risk disclosure that caused loss, and on the balance of probabilities the Plaintiff's account balance of HK$12,236,707.38 was proved; judgment for Plaintiff against 2nd Defendant and claim against 1st Defendant dismissed.
30 Jun 1982

MERRILL LYNCH PIERCE FENNER AND SMITH INC. v. CHENG KWONG YICK

Citation

MERRILL LYNCH PIERCE FENNER AND SMITH INC. v. CHENG KWONG YICK
Court

Court of Appeal
Case number

CACV1314/1981

The judge accepted the plaintiffs' credible and detailed evidence that after repeated margin calls and failed attempts to contact the defendant the plaintiffs validly liquidated the account on 10 December 1980; the defendant's conflicting evidence was rejected, and judgment was entered for the plaintiff for US$49,528 with interest and costs.

Hong Kong Case Law

BHAGWAN SHANKARDAS MOORJANI v. THE KA WAH BANK LTD.

RICHARDSON GREENSHIELDS OF CANADA (PACIFIC) LTD v. ONG YIP CHUNG HENRY AND ANOTHER

MERRILL LYNCH PIERCE FENNER AND SMITH INC. v. CHENG KWONG YICK