Read the full judgment text of HCA 1190/2007, HCA 1191/2007, HCA 1192/2007, HCA 1193/2007 on BabelCite. This Court of First Instance judgment was delivered on 3 August 2016 before Au-Yeung J.
Civil law – charitable trust – public charity – advancement of Buddhism – intestacy – administration of deceased Buddhist monk's estate – four Hong Kong properties registered in deceased monk's name – whether properties subject to public charitable trust – three criteria from Cheung Man Yu v Lau Yuen Ching & ors – Happy Valley Property conceded by plaintiffs to be subject to public charity – Lantau Properties held under express trust in Deed of Gift dated 16 March 1954 from Tung Shau Hong with life interests of Beneficiaries – Tsz Hing Monastery built on Lantau Properties for the advancement of Buddhism – open to public for worship and retreats – charity established before 1995 intended to continue beyond express trust period regardless of Clause 7 of Deed of Gift – Tsz Hing Monastery satisfies three criteria of public charity – Nathan Road Property purchased 1958 and always leased out for rent – never used for advancement of Buddhism – fails to satisfy three criteria of public charity – not subject to charitable trust – burden of proof on party claiming beneficial interest – donor's intention is not the sole factor – court looks at all circumstances at time of creation and subsequently – expert evidence on Buddhist monks' assets not admissible and does not support pleaded practice – Intestates' Estates Ordinance Cap 73 s.12 applies to assets not subject to charity – mesne profits awarded from date of writ – D1 to deliver vacant possession of Nathan Road Property within 3 months – damages of $1,255,200 plus $170,400 per annum from 7 June 2016 – costs split 60% to plaintiffs on party-and-party basis – D1's own costs to be borne out of charity's assets on trustee basis – Secretary for Justice's costs on indemnity basis out of charity's assets
Legal issues: Whether Lantau Properties subject to public charity beyond express trust period · Whether Nathan Road Property subject to charitable trust · Whether donor's intention is sole factor in determining charitable trust · Admissibility of expert evidence on Buddhist monks' assets · Application of Intestates' Estates Ordinance to deceased's assets
Outcome: The court declared the Happy Valley Property and Lantau Properties subject to a public charity for the advancement of Buddhism, but declared the Nathan Road Property to form part of the deceased's estate. D1 was ordered to deliver vacant possession of the Nathan Road Property within 3 months and to pay damages of $1,255,200 plus $170,400 per annum from 7 June 2016 until delivery of possession. The court also ordered that 60% of D1's costs be borne by the plaintiffs on a party-and-party basis.
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