Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Usury and extortionate transaction
  • 26 Jan 2010

    CATHAY PORT LTD v. ZHU MING

    Citation
    CATHAY PORT LTD v. ZHU MING
    Court
    Court of First Instance
    Case number
    HCA2707/2008

    The court held that the defendant raised arguable and substantial defences: the interest and penalty regime in the Deed and incorporated Instrument risked making the transaction extortionate under the Money Lenders Ordinance and the attempted post-execution variation/cap was not clearly incorporated; plaintiffs had not demonstrated mortgage enforcement sufficiently to justify summary judgment against the guarantor. Accordingly the defendant's appeal was allowed, the plaintiff's cross-appeal dismissed and the lower order in favour of the plaintiff set aside pending further steps.