21 May 2020
EMIRATE DISTRIBUTORS LTD AND ANOTHER v. AALL & ZYLEMAN CO LTD AND OTHERS
- Citation
- [2020] HKCFI 851
- Court
- Court of First Instance
- Case number
- HCA1828/2015
D1 breached its tortious duty of care by failing to implement and follow adequate payment verification procedures and by permitting employees (Sandra) and a supervising signatory (D3) to process six unauthorised remittances without noticing multiple red flags; the nominee directors D2–D4 did not owe the asserted supervisory tortious duty in their limited, formal roles; Plaintiffs were contributorily negligent in failing to monitor accounts and secure email, so damages were reduced by 50%; D1 liable to Plaintiffs for 50% of loss (award: P1 USD70,000; P2 USD879,000).