Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Indemnity for derivative action costs
  • 30 Oct 2013

    WONG LUEN HANG AND ANOTHER v. CHAN YUK LUNG AND OTHERS

    Citation
    WONG LUEN HANG AND ANOTHER v. CHAN YUK LUNG AND OTHERS
    Court
    Court of Appeal
    Case number
    CACV112/2012

    The Court of Appeal upheld the trial judge: the Chan brothers did not breach their duty of care in agreeing the settlement because, given Amax's dominance of Topmix's business, the lack of information after key personnel were ousted, the practical difficulty and potential harm of protracted disputes or overseas litigation, and absence of dishonesty, the settlement was a reasonable business decision; accordingly the appeal failed and the trial costs order (plaintiffs to pay 80% of the defendants' costs) stood as plaintiffs failed to substantiate breach and did not seek early court sanction or…