Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Unenforceable security
  • 28 Jan 1994

    WONG KWAI FUN v. LI FUNG

    Citation
    WONG KWAI FUN v. LI FUNG
    Court
    Court of First Instance
    Case number
    HCA5810/1986

    Court found on the balance of probabilities that a loan of $148,500 was made with post-dated cheques and that the effective interest exceeded 60% (about 400% p.a.), bringing the transactions within s.24 so the loan and all securities (power of attorney, 18/4/86 sale agreement, suit assignment) were illegal, unenforceable and void; court exercised s.25 power to reopen the transaction and ordered defendant to repay a reduced sum of $146,500; plaintiff was denied subrogation because the sums used to discharge prior mortgages did not establish an equitable subrogation in plaintiff's favour and, o…