Read the full judgment text of HCCT 107/2022 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 1 February 2024 before Hon Mimmie Chan J.
Construction contract — Retention monies — Whether retention monies held by employer constituted trust for contractor under clause 32.5 of standard form contract — Requirement of certainty of subject matter for express trust — Whether segregation or earmarking necessary for certainty — Fungible nature of money and applicability of authorities on intangible assets — Analysis of conflicting case law including Rayack, Hunter v Moss, Re CA Pacific, MacJordan, Yew Sang Hong, Re Hsin Chong — Examination of evidence whether retention monies were held in segregated account or identifiable bulk — Finding trust failed for lack of certainty of subject matter as monies were part of general funds — Effect of winding-up petition and sanctioned restructuring scheme on treatment of retention monies — Court dismissed Plaintiff’s claim to have retention monies held on trust to bypass Scheme and ordered costs against Plaintiff.
Legal issues: Validity of trust over retention monies and necessity of segregation
Outcome: No valid trust existed over the retention monies. They formed part of Defendant’s general assets and were subject to the Scheme of Arrangement. Plaintiff’s application was dismissed.
Cited by 2 cases