Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Duty of care of trustees

Legal area

Court

31 Jan 2024

GURDAS SABHAGCHAND CHOITHRAMANI v. THE OFFICIAL RECEIVER AND TRUSTEE IN BANKRUPTCY OF GURDAS SABHAGCHAND CHOITHRAMANI (A DISCHARGED BANKRUPT)

Citation

[2024] HKCFI 356
Court

Court of First Instance
Case number

HCA1548/2020

The appeal is dismissed because the Amended Statement of Claim is time‑barred and the pleadings fail to bring the plaintiff within s.26 or s.31 Limitation Ordinance; further, the pleading discloses no reasonable cause of action because the statutory bankruptcy regime (s.83 BO) supplies the bankrupt’s remedy, no civil duty of care was pleaded based on positive acts, and no fiduciary duty was shown absent an ascertained surplus.
9 Mar 2005

MAN FONG HANG v. MAN PING NAM AND OTHERS

Citation

MAN FONG HANG v. MAN PING NAM AND OTHERS
Court

Court of Appeal
Case number

CACV104/2004

The managers breached their fiduciary duty by failing to obtain independent valuation, proper marketing or to invite/engage competing offers; the subsequent resale within 17 days at a substantially higher price (adjusted downward by 10% for vacant possession) disclosed the market value the managers should have achieved; causation of loss to the Wui is established and relief under s.60 is refused because the managers failed to prove they acted honestly and reasonably; therefore the appeal is dismissed and equitable compensation and an account of the fund are ordered.