Fairwing Investment Ltd. v Chau Sau Ngor & Anor (by Original Action) and Chau Sau Ngor v Fairwing Investment Ltd. & Anor (by Counterclaim) [2024] HKCFI 2133; HCA 2068/2018

Aria appeared for 1st Defendant (by Original Action) and for Plaintiff (by Counterclaim) in the proceedings, with Mr Danny Chan.

The central dispute to the proceedings is the beneficial ownership of a flat contained in a village house. The Plaintiff, who was an investor in the construction project of the house, claimed against the 2nd Defendant for beneficial title to the property and against the 1st Defendant for vacant possession of the premises, as she was only temporarily permitted to live there to "watch over" the construction project.

The 2nd Defendant did not contest the proceedings and did not appear. The 1st Defendant averred that she was given the beneficial interest to the premises by Plaintiff following a series of agreements (oral and written) between herself and a representative of the Plaintiff company. The 1st Defendant pleaded inter alia that there was a common intention of constructive trust and there was proprietary estoppel preventing Plaintiff from going back on their promise.

Hon Mimmie Chan J found for the 1st Defendant on the matter of the existence of the agreement and proprietary estoppel. It was further held that the Plaintiff's allegations of duress and "unconscionable conduct" at the alleged signing of the written agreement were too unreliable to be accepted. The claims by the Plaintiff were dismissed and orders were accordingly made in terms of the 1st Defendant's counterclaim, declaring that she is the beneficial owner of the premises and that title of the premises shall be vested in her.

Full judgment is available here.

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