15 Jul 2008
HEBEI ENTERPRISES LTD AND OTHERS v. LIVASIRI & CO (A FIRM) AND OTHERS
- Citation
- HEBEI ENTERPRISES LTD AND OTHERS v. LIVASIRI & CO (A FIRM) AND OTHERS
- Court
- Court of Final Appeal
- Case number
- FACV23/2007
The Court held that Livasiri was negligent: it owed the plaintiffs a duty to advise on foreseeable risks and to implement the protective mechanisms in the shareholders agreement and failed to do so, thereby causing the loss; the stakeholder/fiduciary claim failed because plaintiffs implicitly authorized transfers to H & C; H & C was liable under Partnership Ordinance s.13(b) because it received plaintiffs' funds in the course of its business and the funds were misapplied while in its custody.