Hong Kong Case Law: Decisions & Judgments

Topic

Misappropriation of trust funds

Legal area

Court

12 Jul 2018

CHU KIN WING AND ANOTHER v. CHU KIN SANG JAMES

Citation

[2018] HKCFI 1597
Court

Court of First Instance
Case number

HCMP1135/2014

The defendant was removed as executor because he committed substantial and unjustifiable delay in administering the estate, failed to render a complete and up-to-date account (including missing bank statements), breached duties under statute and the court's consent order, and misappropriated estate funds by withdrawing monies from the joint HSBC account for his own legal costs; accordingly the 1st and 2nd plaintiffs were appointed executors, ordered to receive the estate monies, the defendant was ordered to render a full inventory and account with supporting documents, and to pay the costs of…
6 Nov 2015

TANG YING LOI v. TANG YING IP alias TANG YING YIP AND OTHERS

Citation

TANG YING LOI v. TANG YING IP alias TANG YING YIP AND OTHERS
Court

Court of Appeal
Case number

CACV36/2015

The Court upheld the Judge: the use by the 1st defendant of estate funds to complete the property purchase was a misapplication causally linked to the benefit obtained; characterization as a 'loan' and subsequent repayment did not defeat entitlement to an account of profits; the 1st defendant must account for the proportionate profits (as determined by enquiry) and the plaintiff is entitled to one‑fifth of those profits; the shortfall attracts compensation in the form of interest to be determined at enquiry.
6 Feb 2012

LIBERTARIAN INVESTMENTS LTD v. THOMAS ALEXEJ HALL

Citation

LIBERTARIAN INVESTMENTS LTD v. THOMAS ALEXEJ HALL
Court

Court of Appeal
Case number

CACV54/2011

On the facts the Court found the defendant owed fiduciary duties in respect of funds remitted to the BLP client account, misappropriated specified payments in breach of trust/fiduciary duty, the plaintiff had locus, and the appropriate remedy at this stage is an order for the defendant to render a true and proper account (wilful default basis) with any consequent equitable relief after the account; without prejudice communications relied upon to prove specific sale proceeds were inadmissible, so the interim payment based on them was adjusted to an objectively supportable interim sum (4,823,76…
17 Mar 2011

YICK TAT DEVELOPMENT CO v. YUNG CHUNG YIU

Citation

YICK TAT DEVELOPMENT CO v. YUNG CHUNG YIU
Court

Court of First Instance
Case number

HCA1590/2007

The court found the misappropriation claim could and should have been raised in the earlier Mainland proceedings and that the plaintiff had deliberately omitted particulars to avoid the res judicata attack; allowing the claim in Hong Kong would be an abuse of process; accordingly the amended statement of claim was struck out and the claim dismissed; alternatively the court stayed the proceedings in favour of the Dongguan People's Court as the clearly more appropriate forum.
23 Jun 2008

QUESTNET LTD v. KURT GEORG ROCCO RINCK AND ANOTHER

Citation

QUESTNET LTD v. KURT GEORG ROCCO RINCK AND ANOTHER
Court

Court of First Instance
Case number

HCA1475/2006

On the totality of the evidence the court was satisfied beyond reasonable doubt that the 2nd defendant had notice of the 17-8-2006 Mareva Injunction when he paid out funds on 21 and 28 August 2006; therefore his dealing with those funds breached paragraph 1(3) of the Order and constituted contempt of court.
22 Nov 1995

TUNG KUN SHENG v. CHOW OI LIN

Citation

TUNG KUN SHENG v. CHOW OI LIN
Court

Court of First Instance
Case number

HCA5856/1993

Plaintiff paid the entire purchase price and all related expenses and the property was registered in the Defendant's name only; the Defendant failed to prove a gift to her father or any valid trust in favour of the father; the signed management agreement and contemporaneous correspondence establish that the Defendant held the property on resulting trust for the Plaintiff; Defendant misappropriated the remaining trust account balance and must account; judgment for Plaintiff for transfer, vacant possession, mesne profits of HK$5,000 per month and HK$118,135.33 plus interest.

Hong Kong Case Law

CHU KIN WING AND ANOTHER v. CHU KIN SANG JAMES

TANG YING LOI v. TANG YING IP alias TANG YING YIP AND OTHERS

LIBERTARIAN INVESTMENTS LTD v. THOMAS ALEXEJ HALL

YICK TAT DEVELOPMENT CO v. YUNG CHUNG YIU

QUESTNET LTD v. KURT GEORG ROCCO RINCK AND ANOTHER

TUNG KUN SHENG v. CHOW OI LIN