Hong Kong Case Law: Decisions & Judgments

Topic

Taking of accounts

Legal area

Court

9 Dec 2022

JOE ZHIXIONG ZHOU v. SAIF PARTNERS II L.P.AND ANOTHER

Citation

[2022] HKCFI 3626
Court

Court of First Instance
Case number

HCCL16/2016

Where a fiduciary subject to a detailed court disclosure order deliberately withholds material information and renders an inadequate account, the court may apply the Libertarian principles to draw adverse inferences and make reasonable assumptions to quantify profits; applied here, the Master's findings and apportionments were within lawful discretionary bounds and the appeal is dismissed.
17 Nov 2022

WONG YUK TUNG v. WONG PO LING (also known as WONG PO LING CLARA) AND ANOTHER

Citation

[2022] HKCA 1699
Court

Court of Appeal
Case number

CACV296/2022

The 1st defendant had no right to appeal the 2016 Judgment or the 2018 Order because her applications for extension of time had been dismissed; the Notice of Appeal's grounds sought to overturn those adjudicated matters and were therefore incompetent and plainly incapable of argument, so the entire Notice of Appeal was struck out.
15 Sept 2021

LAU KOON YING MATTHEW, as the executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

Citation

[2021] HKCA 1349
Court

Court of Appeal
Case number

CACV509/2020

Court held that award of compound interest depends on evidence or a safe presumption of the nature and extent of profit made by fiduciary or his agents; applied principles to facts and (1) affirmed judge’s award of simple interest for Sale Proceeds because no sufficient basis to presume compound returns, and (2) reinstated Master’s award of compound interest for Rental Proceeds because companies collecting rents carried on property business and in absence of disclosure it was proper to presume retention and use as working capital warranting compound interest.
15 Sept 2021

LAU KOON YING MATTHEW, as the executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

Citation

[2021] HKCA 1349
Court

Court of Appeal
Case number

CACV508/2020

Compound interest may be awarded against fiduciaries only where, on the evidence or permissible inferences, it can be established or safely presumed that the fiduciary derived profits of a compound nature (for example by using funds as working capital in a business). Applying that principle, the court held that: (a) as to the Sale Proceeds there was insufficient basis to presume compound profits and simple interest was appropriate; (b) as to the Rental Proceeds, where companies that conducted property investment/subletting collected and retained the rents and failed to disclose accounts, it w…
23 Dec 2020

LAU KOON YING MATTHEW as the Executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

Citation

[2020] HKCFI 3129
Court

Court of First Instance
Case number

HCA2305/2012

The Order Nisi was varied to require the plaintiff to pay 75% of the defendants' costs of and incidental to the appeal because the successful ground (Ground 1) occupied the majority of hearing time and submissions; the Master's costs order for the taking of account summons was left undisturbed because, on the Master's findings and the unsatisfactory state of the defendants' evidence, the appropriate order would still have been to award costs to the plaintiff even if defendants had prevailed on the compound interest point; plaintiff also ordered to pay 50% of defendants' costs of their summons…
23 Dec 2020

LAU KOON YING MATTHEW as the Executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

Citation

[2020] HKCFI 3129
Court

Court of First Instance
Case number

HCAP23/2013

The court varied the Order Nisi and, having examined hearing duration and allocation of written submissions, concluded that defendants' success on Ground 1 justified a greater share of the appeal costs; accordingly the plaintiff was ordered to pay 75% of defendants' costs of the appeal (to be taxed if not agreed) with certificate for two counsel. The Master's costs order for the 20 December 2017 summons for taking of account was not disturbed. The plaintiff was ordered to pay 50% of defendants' costs of the summons to vary the Order Nisi, to be taxed if not agreed, with certificate for one co…
21 Aug 2020

LAU KOON YING MATTHEW v. LAU TARK WING AND OTHERS

Citation

[2020] HKCFI 2107
Court

Court of First Instance
Case number

HCA2306/2012

The court held the Master erred in exercising discretion to award compound interest because there was insufficient evidential foundation to infer that the defendants used the funds in trade or made profits or had put themselves in a position giving rise to a presumption of compound returns; therefore compound interest was replaced with simple interest. Extension of time to appeal was granted (limited to the ground on interest) because delay was excusable due to genuine procedural mistake by appellants' counsel; remaining parts of the Master's Orders (including disallowance of deductions and r…
21 Aug 2020

LAU KOON YING MATTHEW, as the Executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

Citation

[2020] HKCFI 2107
Court

Court of First Instance
Case number

HCAP23/2013

The master erred in law and in the exercise of discretion by awarding compound interest: there was insufficient evidence that the defendants used the sums in a commercial or trading manner or otherwise put themselves in a position to attract a presumption of compounded profit, and the master misunderstood and misapplied the legal principle permitting compound interest in lieu of an account of profits. The appropriate remedy is simple interest; extension of time to appeal is granted limited to the ground attacking compound interest; other parts of the master's orders stand.
21 Aug 2020

LAU KOON YING MATTHEW, as the Executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

Citation

[2020] HKCFI 2107
Court

Court of First Instance
Case number

HCA2305/2012

The Master erred in awarding compound interest because there was insufficient evidence that the defendants had used the sums in trade or obtained profits such that compound interest in lieu of an account of profits was justified; the exercise of discretion was plainly wrong. The appeal was allowed in part: compound interest was replaced with simple interest, the extension of time to appeal was granted limited to the ground on compound interest, and the remainder of the Master's orders were left undisturbed.
11 Dec 2019

LAU KOON YING MATTHEW, as the executor of the estate of LAU YIU WING, deceased (“the Deceased”) v. LAU TARK WING AND ANOTHER

Citation

[2019] HKCA 1387
Court

Court of Appeal
Case number

CACV229/2019

The taking of accounts in the present equitable/restorative circumstances does not fall within the 'or otherwise' limb of Order 58 rule 2(b); therefore appeals from the master's orders made upon taking of accounts must be brought before a single judge of the Court of First Instance, not the Court of Appeal. The Notices of Appeal to the Court of Appeal were struck out and an order nisi for costs in favour of the appellant was made.