Hong Kong Case Law: Decisions & Judgments

Topic

Vesting order (trustee ordinance s52)

Legal area

Court

14 Mar 2024

EMPIRE SUMMIT INTERNATIONAL LTD (IN COMPULSORY LIQUIDATION) v. SUN HONGMEI AND OTHERS

Citation

[2024] HKCFI 907
Court

Court of First Instance
Case number

HCMP729/2023

Where a director wrongfully transferred company funds to a third party, those funds were held on resulting and constructive trust for the company; the company may trace the funds into shares held at a broker and obtain declarations, vesting and transfer orders under Trustee Ordinance s52(1)(e), an equitable charge over other shares for the discharged debit amount, interest and indemnity costs; default judgment was appropriate where defendant did not acknowledge service.
6 Jul 2020

ALMAR SALES CO. INC. v. CHUANGYOU TRADING CO., LTD

Citation

[2020] HKDC 472
Court

District Court
Case number

DCCJ1036/2020

Service was valid and defendant did not defend; plaintiff proved on the evidence it was defrauded and the US$122,667.84 paid into the defendant's account was obtained by fraud and is therefore held by the defendant on constructive trust for the plaintiff; however, a vesting order under s52(1)(e) to compel a bank to release funds is inappropriate where the bank is not a party and has taken a neutral stance and where there are procedural and substantive issues (including tracing and third party rights); accordingly the court declared the constructive trust and ordered repayment and costs, but d…
24 Jun 2020

800 COLUMBIA PROJECT COMPANY LLC v. HONG KONG BOSING TRADE LTD AND ANOTHER

Citation

[2020] HKCFI 1293
Court

Court of First Instance
Case number

HCA156/2020

Default judgments were properly granted for the monetary reliefs and declarations that the defendants hold specified sums as constructive trustees for the plaintiff because proper service, absence of defence and the plaintiff's pleaded restitutionary claim and need for declaratory relief were established. However, vesting orders under section 52(1)(e) Trustee Ordinance were refused because the statutory vesting jurisdiction presupposes a change in trusteeship or appointment of trustees; a person declared by the court to be a constructive trustee is not an 'appointed' trustee for the purposes…
4 Dec 2019

SBM BANK (MAURITIUS) LTD v. WARNER TRADING LTD AND OTHERS

Citation

[2019] HKCFI 2956
Court

Court of First Instance
Case number

HCA2416/2018

On the pleaded facts and evidence the court was satisfied the money received by the defendants originated from the plaintiff by fraud and that the defendants either participated or held the sums on constructive trust; default judgment and declarations were necessary to protect the plaintiff's proprietary rights and enable tracing; vesting orders under s52 TO and joinder of banks were appropriate to give effect to the proprietary claim where direct compliance by defendants might not occur; uncertainty as to current balances in accounts held with Heng Sang Bank required adjourning orders as to…
11 Sept 2019

TAI CHING LING v. CAI GUO CHUAN

Citation

[2019] HKCFI 2251
Court

Court of First Instance
Case number

HCA1782/2018

Because the defendant received funds in circumstances showing no legitimate basis and had knowledge of the proceedings and did not repay, it was unconscionable to retain the sum; equity therefore imposed a constructive trust in favour of the plaintiff and a vesting order under s52 Cap 29 was appropriate to vest the right to the funds and permit transfer; Bank of China (HK) was to be joined and ordered to comply with the vesting order subject to practical limitations (no time limit for cross‑border transfer and no order for profits).
31 May 2019

PRESCIENT CORPORATION v. DUNSE TRADING LTD

Citation

[2019] HKDC 735
Court

District Court
Case number

DCCJ678/2019

Where money was paid as a result of email impersonation fraud and the recipient has no legitimate claim and has not changed position, equity imposes a constructive trust making the funds recoverable and traceable; valid service and absence of defence justified default judgment and declaratory relief, and the court may make a vesting order under Trustee Ordinance s52 to vest the right to recover in an appointee (here the bank) and order payment to the beneficiary.

Hong Kong Case Law

EMPIRE SUMMIT INTERNATIONAL LTD (IN COMPULSORY LIQUIDATION) v. SUN HONGMEI AND OTHERS

ALMAR SALES CO. INC. v. CHUANGYOU TRADING CO., LTD

800 COLUMBIA PROJECT COMPANY LLC v. HONG KONG BOSING TRADE LTD AND ANOTHER

SBM BANK (MAURITIUS) LTD v. WARNER TRADING LTD AND OTHERS

TAI CHING LING v. CAI GUO CHUAN

PRESCIENT CORPORATION v. DUNSE TRADING LTD