Hong Kong Case Law: Decisions & Judgments

Topic

Priority of equitable interests

Legal area

Court

4 May 2018

SKY JOY INVESTMENT LTD v. ZHENG DUNMU AND ANOTHER

Citation

[2018] HKCA 259
Court

Court of Appeal
Case number

CACV205/2017

Applying Ladd v Marshall the court held item 1 met condition 1 but failed condition 2 because genuineness of certificates does not affect validity or priority of the share charge; items 2 and 3 failed condition 1 (could have been obtained with reasonable diligence) and condition 2 (evidence inconsistent with contemporaneous loan/option documents and would not have important influence); accordingly all three items were refused and the summons dismissed; costs ordered against the appellant but indemnity costs and certificate for two counsel refused; reasonable costs assessed at $128,561.
16 Aug 2017

SKY JOY INVESTMENT LTD v. ZHENG DUNMU AND ANOTHER

Citation

SKY JOY INVESTMENT LTD v. ZHENG DUNMU AND ANOTHER
Court

Court of First Instance
Case number

HCA395/2016

Li failed to demonstrate a sufficiently arguable case or real prospect of success because the plaintiff acquired an equitable interest by way of the Share Charge on 30 September 2015 which predated any equitable interest Li obtained upon exercise of options in September/November 2016; accordingly the default judgment insofar as it declared legal title and validated the contested new share certificates could not stand without evidence and was set aside and limited to a declaration of equitable interest only.
14 Jun 2013

KING\'S CITY HOLDINGS LTD v. DE MONSA INVESTMENTS LTD

Citation

KING\'S CITY HOLDINGS LTD v. DE MONSA INVESTMENTS LTD
Court

Court of Appeal
Case number

CACV205/2012

The appeal was dismissed: the Court held that permitting De Monsa to re‑litigate the mental capacity of its director on substantially the same evidence already decided in the Probus actions would be an abuse of process and would bring the administration of justice into disrepute; clause 17(3) is a liquidated damages clause that does not preclude a common law damages claim and thus does not bar King's City from claiming the difference in price and expenses; provisional pre‑sales did not disable King's City from performing because they created later equitable interests which are subordinate to…
25 Nov 2009

FLYING MORTGAGE LTD v. CHAN KUEN KWONG AND OTHERS

Citation

FLYING MORTGAGE LTD v. CHAN KUEN KWONG AND OTHERS
Court

District Court
Case number

DCCJ5004/2006

On the evidence Lai supplied the purchase money, retained title deeds, occupied and maintained the property and did not intend an absolute gift; Flying Mortgage failed to make reasonable inquiries (including as to title deeds and actual occupation) and therefore had constructive notice of Lai's beneficial interest; accordingly Lai holds the beneficial interest under a resulting trust and Flying Mortgage's mortgages are subject to that interest, so Flying Mortgage cannot enforce possession against Lai.
11 Sept 2009

NG PO LAN AND ANOTHER v. TSUI CHUNG POR AND ANOTHER

Citation

NG PO LAN AND ANOTHER v. TSUI CHUNG POR AND ANOTHER
Court

Court of First Instance
Case number

HCA238/2007

The judge accepted plaintiffs' evidence as credible and defendants' evidence as unreliable, concluding the 1st defendant held legal title as trustee for the 2nd plaintiff; accordingly the 2nd plaintiff has the beneficial interest, is entitled to account for rents, and the purported sale to the 2nd defendant is subject to that equitable interest except for the mortgage-discharge sum which is secured as a charge in favour of the 2nd defendant.
23 Nov 2005

POWER ALLIANCE INVESTMENT LTD v. LAU KAI PIU

Citation

POWER ALLIANCE INVESTMENT LTD v. LAU KAI PIU
Court

Court of First Instance
Case number

HCA815/2005

The appeal was dismissed because the court was not satisfied that the defendant's evidence was inherently unbelievable and because the legal question whether an exercised option could create an equitable lease falling within the proviso to s.3(2) LRO was not suitable for summary determination; accordingly plaintiff was not entitled to summary judgment.
17 Jun 1998

MINIMAX CO. LTD. v. TSO YAN and Another

Citation

MINIMAX CO. LTD. v. TSO YAN and Another
Court

Court of First Instance
Case number

HCMP3730/1997

The 2nd Defendant had a registrable equitable interest at the time the Plaintiff commenced proceedings; her registration was not wrongful while the Plaintiff's purchase had not completed and she had not yet finally abandoned specific performance. The 2nd Defendant was blameless; the registration had been withdrawn on 28 February 1998 and the Plaintiff's claim for costs against the 2nd Defendant in respect of that vacation was misconceived and must fail. The court made an order nisi that the Plaintiff pay the 2nd Defendant's costs, to be taxed if not agreed.
25 Nov 1994

CHU KIT YUK AND ANOTHER v. COUNTRY WIDE INDUSTRIAL LTD AND OTHERS

Citation

CHU KIT YUK AND ANOTHER v. COUNTRY WIDE INDUSTRIAL LTD AND OTHERS
Court

Court of Appeal
Case number

CACV126/1994

The provisional printed forms of 11 March 1991 constituted immediately binding contracts for the sale of the vendor's interests in the flats; the forms preferred novation as the method of performance but did not make novation the only mode so as to defeat the purchasers' rights if novation failed; extrinsic evidence was inadmissible to alter the written terms; where equities are equal the first in time (the first purchasers) prevail, and no unconscionable conduct or exceptional hardship justified postponing them to the second purchasers, so specific performance was ordered for the first purch…
28 Jun 1993

WONG LAI SUK CHUN v. WONG CHIU MING

Citation

WONG LAI SUK CHUN v. WONG CHIU MING
Court

District Court
Case number

DCCJ3570/1992

Petitioner acquired a beneficial equitable interest in the matrimonial home from the time she began paying mortgage instalments (resulting/constructive trust); that interest ranks after charging orders registered before her interest arose, but a chargee who registered while the property was under the Home Ownership Scheme (with occupation restrictions on the register) is fixed with constructive notice of the likely spouse/family occupier and therefore that chargee (Memorial No.511772) takes subject to the petitioner's equitable interest; accordingly the respondent must transfer his share to t…
8 Nov 1988

BRILLIANT STAR INVESTMENT LIMITED v. NZI INTERNATIONAL ACCEPTANCES LIMITED & OTHERS

Citation

BRILLIANT STAR INVESTMENT LIMITED v. NZI INTERNATIONAL ACCEPTANCES LIMITED & OTHERS
Court

Court of First Instance
Case number

HCA6008/1988

The court refused to strike out the plaintiff's claim against Pistola because the claim was not plainly and obviously unsustainable: genuine factual disputes existed whether NZI sold as mortgagee or as owner and whether Pistola had notice at the time of contracting; those matters affect priority and applicability of Henderson v Astwood and require trial rather than summary disposal.