Hong Kong Case Law: Decisions & Judgments

Topic

Vesting order under trustee ordinance s52

Legal area

Court

14 Mar 2024

EMPIRE SUMMIT INTERNATIONAL LTD (IN COMPULSORY LIQUIDATION) v. SUN HONGMEI

Citation

[2024] HKCFI 907
Court

Court of First Instance
Case number

HCA282/2022

On the pleaded and assumed facts in default, the transferred company funds were held by Sun on resulting and constructive trust for Empire Summit; Empire Summit is entitled to declaratory relief, tracing into the shares purchased with those funds, an order for transfer/remittance, an equitable charge over specified shares up to HK$6,450,152.33, vesting and transfer of shares under Trustee Ordinance s52(1)(e), interest at commercial rate on the relevant amount and costs on an indemnity basis due to the fraudulent nature of the transfer.
28 Dec 2023

HUNG WAI CHING v. LEE LAP YAN AND OTHERS

Citation

[2023] HKDC 1834
Court

District Court
Case number

DCMP1760/2022

The court found on the evidence the plaintiff was the victim of a fraud and that the recipients (1st and 3rd defendants) were fraudulent recipients; constructive trusts arose over the sums transferred, the relevant balances in the bank accounts were traceable to the plaintiff (HK$600,000 in the HSBC account and HK$240,270 in the BOC account), and it was appropriate and expedient to grant declarations of constructive trust and vesting orders under s52 Trustee Ordinance directing the banks to pay those sums to the plaintiff; accordingly the 1st and 3rd defendants were held liable to account and…
26 Apr 2022

LUK WING SZE v. HONG KONG XIN YU INTERNATIONAL INDUSTRIAL LTD AND ANOTHER

Citation

[2022] HKDC 303
Court

District Court
Case number

DCMP4109/2021

Because the plaintiff proved she was a victim of fraud and the six transfers were paid into the first defendant's account, the court declared the funds held on constructive trust for the plaintiff; the sixth sum of $249,985 was sufficiently traceable and, being expedient since the first defendant did not appear and could not be located, the court vested the chose in action in the plaintiff under Trustee Ordinance s52(1)(e) and ordered the bank to release and return that sum (subject to the statutory first charge for Director of Legal Aid).
18 Feb 2022

HYPERTEC SYSTEMS INC. v. YIFIM LTD AND OTHERS

Citation

[2022] HKCFI 482
Court

Court of First Instance
Case number

HCMP1829/2021

Where funds obtained by email fraud were received into defendants' bank accounts, a constructive trust arose by operation of law in respect of those sums and the court has jurisdiction under section 52(1)(e) Trustee Ordinance to make vesting orders vesting the right to sue to recover the choses in action in the victim; consequentially default judgment, declaratory relief and monetary judgment were appropriately entered and vesting orders granted for the traced balances.
23 Sept 2019

COMTEL SOLUTIONS PTE LTD v. YI LI TRADE (HK) CO., LTD AND ANOTHER

Citation

[2019] HKCFI 2407
Court

Court of First Instance
Case number

HCA1142/2019

Given unchallenged evidence that funds transferred by email fraud ended up in the defendant's bank account and the defendant's failure to respond, the court imposed a constructive trust over US$499,957.44, granted declaratory relief and a vesting order under section 52 of the Trustee Ordinance to vest the funds and ordered return; any unrecovered balance is awarded as a monetary judgment with interest at HSBC prime +1% from 21 February 2019; costs to plaintiff.
18 Jul 2016

GUARANTY BANK AND TRUST CO v. ZZZIK INC LTD

Citation

GUARANTY BANK AND TRUST CO v. ZZZIK INC LTD
Court

Court of First Instance
Case number

HCA1139/2016

On the uncontested evidence the transfer was made by fraud and mistake; the defendant was unjustly enriched and, in the circumstances where it is unconscionable for the defendant to retain the funds, equity imposes a proprietary constructive trust enabling the plaintiff to trace and recover the funds; given the defendant's absence and inability to effect transfer the court will grant a vesting order under the Trustee Ordinance and direct the bank to pay the plaintiff.

Hong Kong Case Law

EMPIRE SUMMIT INTERNATIONAL LTD (IN COMPULSORY LIQUIDATION) v. SUN HONGMEI

HUNG WAI CHING v. LEE LAP YAN AND OTHERS

LUK WING SZE v. HONG KONG XIN YU INTERNATIONAL INDUSTRIAL LTD AND ANOTHER

HYPERTEC SYSTEMS INC. v. YIFIM LTD AND OTHERS

COMTEL SOLUTIONS PTE LTD v. YI LI TRADE (HK) CO., LTD AND ANOTHER

GUARANTY BANK AND TRUST CO v. ZZZIK INC LTD