Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Mortgagee powers

Legal area

Court

12 Oct 2006

ESQUIRE (ELECTRONICS) LTD v. THE HONG KONG AND SHANGHAI BANKING CORPORATION LTD AND ANOTHER

Citation

ESQUIRE (ELECTRONICS) LTD v. THE HONG KONG AND SHANGHAI BANKING CORPORATION LTD AND ANOTHER
Court

Court of Appeal
Case number

CACV312/2005

The Court of Appeal held that the Bank did not breach any fiduciary duty beyond the limited duty imposed by the contractual matrix (power of attorney and mortgagee rights), that the sale achieved market value and was properly marketed, and that there was no illegitimate pressure amounting to economic duress nor undue influence; accordingly the trial judge's findings were set aside and the plaintiffs' claims dismissed.
17 Mar 2005

TRAFFIC STREAM (BVI) INFRASTRUCTURE LTD v. THE JP MORGAN CHASE BANK AND OTHERS

Citation

TRAFFIC STREAM (BVI) INFRASTRUCTURE LTD v. THE JP MORGAN CHASE BANK AND OTHERS
Court

Court of First Instance
Case number

HCA2301/2004

The mortgage expressly conferred on the Bank the voting and attendant powers to appoint and remove directors and to sell the mortgaged shares; exercise of those powers and any sale or negotiation by directors appointed by the Bank does not clog the mortgagor's equity of redemption because the mortgagor retains the right to an account for any surplus; the US Bankruptcy Court decision addressed the same issues and bars re-litigation on issue estoppel grounds; the plaintiff's case was therefore legally untenable and an abuse of process and must be struck out.