Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Irredeemability
  • 4 Jun 2019

    CHUNG YUEN CHU AND ANOTHER v. COSIMO BORRELLI AND OTHERS

    Citation
    [2019] HKCA 622
    Court
    Court of Appeal
    Case number
    CACV173/2018

    The Court of Appeal dismissed the appeal and upheld the trial judge: the Pledges were not void as irredeemable. Clause 20.2 requires both satisfactory performance of obligations and termination of the IRA for termination of the Pledges; notwithstanding some surviving non‑monetary obligations (including confidentiality), those obligations were either collateral to the mortgage relationship or would in the commercial factual matrix terminate in the ordinary course (given investors' expected exit), and did not render redemption illusory. The Pledgees' subjective judgment is constrained by an imp…