HSU BENG v. LEUNG TSE KIN and Others

IN THE HIGH COURT OF HONG KONG

COURT OF FIRST INSTANCE

Action No. 14698 of 1996

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J U D G M E N T

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The 3rd and 5th Defendants misappropriated $191,125 belonging to the Plaintiff and applied the money for the purpose of paying deposit, partial consideration, stamp duty and legal fee for the purchase of a property which was later sold at a profit. The plaintiff sought to recover the said $191,125 together with its inflated value by reason of the purchase of the property. Upon the defendants' default, judgment was entered against them by Mr. Registrar Betts. The matter is now before me for assessment of damages.

2. Mr. Wong on behalf of the Plaintiff argued that a resulting trust over the property was created by reason of the Defendants applying the Plaintiff's money towards the purchase of property and the Plaintiff is entitled to a share in the appreciation in the price of the property when the property was sold. However, for practical reasons, Mr. Wong abandoned his argument and was content to have damages assessed without the benefit of the appreciation in the value of the property. Accordingly I assess the Plaintiff's damage to be $191,125 and awarded him this damages plus interest at judgment rate from 26 May 1989 until payment.