Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Enforceability under s.18 money lenders ordinance

Legal area

Court

30 Mar 2007

STRONG OFFER INVESTMENT LTD (In Liquidation) v. NYEU TING CHUANG

Citation

STRONG OFFER INVESTMENT LTD (In Liquidation) v. NYEU TING CHUANG
Court

Court of Final Appeal
Case number

FACV21/2006

The court upheld enforcement under s.18(3) because the s.18 breaches were technical, the documents could be read as a composite memorandum and caused no prejudice to a sophisticated, informed borrower; a lender entitled to liquidate a margin account has no duty to mitigate by timing the sale beyond selling at current market price when it elects to sell; any element of compound interest in the judgment is unlawful and must be removed.
3 Dec 2004

STRONG OFFER INVESTMENT LTD v. NYEU TING CHUANG

Citation

STRONG OFFER INVESTMENT LTD v. NYEU TING CHUANG
Court

Court of First Instance
Case number

HCA10541/2000

The contractual documents signed by the defendant constituted the memorandum required by s.18; the breaches were technical and unintentional and did not cause real prejudice so the court exercised its s.18(3) discretion to enforce the loans; there were no special circumstances to pierce the corporate veil; Okachi HK did not breach duties in handling the margin accounts; the plaintiff did not fail to mitigate; and amendments to plead illegality under HKSE Rules or Cap.333 were refused because those provisions do not render the contracts civilly unenforceable.