Lok Wai Kwan and Others v. Wong Chi Kau, The Executor of the Estate of Siu Oi Chu, Deceased
Read the full judgment text of HCMP 936/2022 on BabelCite. This High Court CFI judgment was delivered on 14 January 2025.
1. By the plaintiffs’ Amended Originating Summons re-filed on 28 December 2023 ( “the Amended Originating Summons” ), the plaintiffs applied, inter alia , for the following orders:
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HCMP 936/2022 [2025] HKCFI 269 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE MISCELLANEOUS PROCEEDINGS NO. 936 OF 2022 ________________________
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________________________ J U D G M E N T ________________________ INTRODUCTION 1.By the plaintiffs’ Amended Originating Summons re-filed on 28 December 2023 (“the Amended Originating Summons”), the plaintiffs applied, inter alia, for the following orders:
BACKGROUND 2.The following background is undisputed or indisputable. 3.The Deceased passed away on 14 July 2019. 4.The Deceased had three children – the 3 plaintiffs. 5.The Deceased left a will dated 19 June 2013 (“the Will”), in which the defendant was named as the sole executor and trustee of the Estate. 6.Apart from the plaintiffs, Kwong Wah Hospital is also a beneficiary under the Will. It was provided therein that the 4 beneficiaries shall each be entitled to ¼ of the Estate. 7.On 16 January 2020, the defendant obtained Grant of Probate (“Probate”) in relation to the Estate pursuant to the Will. 8.According to the Schedule of Assets of the Grant of Probate, the Estate comprised the following assets:
9.The Land Property had been sold in August 2020 by the defendant as executor of the Estate at a consideration of $4.8 million. 10.In the period between May and July 2020, 3 distributions had been made by the defendant as executor of the Estate, and under which the 4 beneficiaries had received a total of $1.3 million each. 11.In the period between August 2020 and May 2021, the defendant had made 3 further distributions. However, on those occasions, only the plaintiffs had received assets (in the total sum of $1.9 million each), whereas Kwong Wah Hospital has not received anything. 12.It appears that further distributions have been made thereafter, but the exact amount of distribution is yet to be ascertained. THE PLAINTIFFS’ REQUESTS AND THE DEFENDANT’S RESPONSE 13.I will now set out the correspondences between the parties which led to the commencement of this action. Unless otherwise stated, the plaintiffs’ letters were issued by their solicitors. 14.On 1 June 2021, the plaintiffs enquired with the defendant by letter as to how much was left in the Deceased’s Estate for further distribution. They also asked for an account of a number of different types of transactions which the defendant had undertaken since the grant of the Probate. 15.On 7 July 2021, the plaintiffs chased the defendant by letter for a response to the letter issued on 1 June 2021, and asked the defendant to clarify whether he was in a position to make further distribution of the Estate by 5 August 2021. The said letter was also sent to the defendant via WhatsApp by the 3rd plaintiff. 16.On 7 July 2021, the defendant replied to the 3rd plaintiff by WhatsApp that he had just received the aforesaid 2 letters, and that he would contact the plaintiffs’ solicitors. 17.On 27 July 2021, the plaintiffs complained to the defendant by letter that no response had been received by the plaintiffs nor the plaintiffs’ solicitors from the defendant, and asked the defendant to contact the plaintiffs’ solicitors by 3 August 2021. The plaintiffs threatened that if the defendant failed to do so, they would make whatever application they thought fit. The said letter was also sent to the defendant via WhatsApp by the 3rd plaintiff. 18.On 3 August 2021, the defendant wrote to the plaintiffs’ solicitors and alleged that he had not received the previous letters by post. He also confirmed that he had not completed the administration of the Estate. He further requested the 3rd plaintiff to hand over certain golden ornaments and other luxurious items which the 3rd plaintiff had taken away from the Deceased’s flat after her death. 19.On 21 January 2022, the plaintiffs confirmed by letter with the defendant that the 3rd plaintiff was ready to hand over certain jewelleries, and urged the defendant to contact the plaintiffs’ solicitors by 28 January 2022 so that a time for hand over might be arranged. The said letter was also sent to the defendant via WhatsApp by the 3rd plaintiff. 20.On 21 February 2022, the plaintiffs reiterated to the defendant by letter again that the 3rd plaintiff was ready to hand over the jewelleries and urged the defendant to contact the plaintiffs’ solicitors by 1 March 2022. The said letter was also sent to the defendant via WhatsApp by the 3rd plaintiff. 21.On 6 April 2022, the plaintiffs’ solicitors demanded the defendant to contact them and arrange a time for hand over of the jewelleries, account for the transactions that occurred after the Grant of Probate, and render full and proper accounts. The said letter was also sent to the defendant via WhatsApp by the 3rd plaintiff. 22.However, the defendant did not respond. 23.The plaintiffs then commenced these proceedings on 18 July 2022. THE PLAINTIFFS’ GROUNDS OF APPLICATION 24.The plaintiffs submitted that the defendant should be removed on, inter alia, the following grounds:
APPLICABLE LEGAL PRINCIPLES Duty to keep proper accounts 25.Section 56 of the Probate and Administration Ordinance (Cap.10, Laws of Hong Kong) (“the Ordinance”) provides that:
26.In Re Estate of Lee Da Kor [2010] 1 HKLRD 415, Poon J (as Poon CJHC then was) explained that:
27.In Chow Chak Kiu v Chow Man Chit & Others (HCMP 797/2016, unreported, 17 January 2017), Chow J (as Chow JA then was) stated at [40] that:
28.In Chan Yu Hong v Chan Kam Hong & Others (HCMP888/2013, unreported, 19 July 2017), B Chu J also held that:
Removal of executor 29.Section 33(3) of the Ordinance provides that:
30.The court’s discretion under section 33(3) of the Ordinance has been summarised in Law Wai Hay v Law Po Chong Priscilla [2021] HKCFI 3017 at [28]:
31.In Chang Wing Ka John v Chang Wing Dee & Another [2021] HKCFI 47, DHCJ To further explained the legal principles on the removal of administrators under section 33(3) of the Ordinance as follows:
32.In Chu Wing Chuen Paul & Others v Chu Oi Yan Irene [2022] HKCFI 804, Wilson Chan J also had the following to say:
33.In Chan Kam Shing Alexander v Chan Yin Yau [2023] HKCFI 1092, Wilson Chan J further accepted at [62] that:
34.In Lau Tung Hoi Kent v Lau Tung Kuen [2022] HKCFI 1921, the learned Judge discussed the weight to be given to the choice of executor of the deceased. It was held that:
THE HEARING ON 4 JUNE 2024 35.While the defendant had filed an affirmation to oppose the plaintiffs’ applications, he agreed at the hearing on 4 June 2024 (“the June Hearing”) to exhibit by affidavit a true and perfect inventory and account of the Estate by 31 July 2024. In other words, he agreed to the making of the Account Order pursuant to paragraph 1 of the Amended Originating Summons. 36.On the other hand, the plaintiffs agreed that, in the light of 3 cashier orders which the defendant produced in the Court at the June Hearing for further distribution of the Estate, the application for the Replacement Order be adjourned sine die with liberty to restore. THE HEARING ON 11 SEPTEMBER 2024 37.Despite the defendant’s confidence that he could fully discharge his duty shortly after the June Hearing, he informed the Court by letter dated 26 August 2024 that he could not do so as expected, as he allegedly had lost some of the required information. 38.Another hearing was therefore fixed to be heard on 11 September 2024 (“the September Hearing”) to deal with the matter. 39.Despite the plaintiffs’ initial stance that the defendant should be removed forthwith, they agreed at the September Hearing that a last chance should be given to the defendant as requested, as it was the defendant’s representation that the only missing documents were in relation to a securities account which would be made available to him shortly, and that he should be able to complete the account by mid-October 2024. This apparently is a sensible approach for the plaintiffs to take, because the replacement of the defendant would no doubt lead to further legal costs to be incurred, and it would take time for the 1st plaintiff to take over the administration matter from the defendant. 40.The time for the defendant to comply with the Account Order was as a result extended to 31 October 2024. He was further directed to report to the Court the progress of the matter by 8 November 2024. THE HEARING ON 30 DECEMBER 2024 41.On 11 November 2024, the plaintiffs’ solicitors wrote to the Court and reported that the defendant has breached the Account Order. In the light of the defendant’s repeated breach of the Account Order, they requested to restore their application for the Replacement Order. 42.It was further noted that the defendant did not write to the Court as directed at all. 43.Another hearing was therefore fixed to be heard on 30 December 2024 (“the December Hearing”). 44.At the December Hearing, the defendant admitted that he had breached the Account Order. Be that as it may, he asked that a very last chance be given to him. He was willing to accept an unless order with a deadline to be fixed for 28 February 2025, with the consequence of breach being the grant of the Replacement Order. DISCUSSION 45.The 1st question is whether further time should be granted to the defendant for his compliance of the Account Order. 46.In my view, the answer must be “No”:
47.While the only issue raised by the defendant in the December Hearing was whether further extension of time should be granted, I think I should also explain why I am of the view that the Account Order and the Replacement Order should be made anyway with or without the defendant’s consent, which I will do below. 48.As far as account of the Estate is concerned, it is undeniable that the plaintiffs have enquired with the defendant time and again as to the transactions which the defendant had conducted for the Estate after the Grant of Probate. However, many of those repeated requests have fallen on deaf ears. As a result, the plaintiffs had been kept in the dark as to the progress of the defendant’s administration of the Estate. Neither were they informed as to their entitlement under the Estate. This is unsatisfactory, particularly when the Deceased has passed away in July 2019 and the Probate was granted in January 2020. 49.Furthermore, as aforesaid, it has been nearly 5 years since the defendant has obtained the Grant of Probate. However, it appears that there are quite a lot of assets yet to be distributed. 50.Worse still, it has not been explained as to why the defendant has failed to make any distribution to Kwong Wah Hospital after July 2020, even though he had made further distributions to each of the plaintiffs since August 2020. In this regard, it is noted that the defendant had sent the plaintiffs’ solicitors for reference photocopies of 2 cashier orders dated 3 June 2024 and 6 June 2024 for the respective sums of $1,828,000 and $339,000 payable to Kwong Wah Hospital (“the Cashier Orders”). However, the Hospital Authority’s solicitors have since then confirmed with the plaintiffs’ solicitors that neither Kwong Wah Hospital nor the Hospital Authority had ever received any of the Cashier Orders. This is a serious matter which requires investigation as soon as possible. 51.Under all these circumstances, it is understandable that the plaintiffs had lost their trust on the defendant and did not want him to continue to be the executor of the Estate. 52.Pausing here, I note that the plaintiffs have also relied on the fact that the defendant had been found to be in professional misconduct by the Law Society, and one of the proved allegations made against the defendant by the Law Society was that he had failed to answer fully and promptly to correspondence from a client or former clients. On my part, I do not think that that per se would assist the plaintiffs’ case, because the defendant apparently is not discharging his duty as executor as a practising solicitor herein, but rather as a friend of the Deceased. 53.I now turn to the defendant’s grounds in opposition which may be summarised as follows:
54.With respect, I do not think it is relevant to consider the Deceased’s relationship with the plaintiffs during her lifetime. 55.Neither do I think it relevant that the Deceased trusted the defendant. No matter how close he was to the Deceased and how he was trusted by the Deceased, the Court would not lower the standard required of him in the discharge of his duty as the executor of the Estate. 56.I do not accept that the Deceased had ever expressed that there should not be “forthwith” distribution as alleged:
57.Hence, in all the circumstances of the present case, I consider that the Court should exercise its discretion in removing the defendant as the executor of the Estate:
58.The next question is whether the 1st plaintiff should be appointed in place of the defendant as the administrarix of the Estate. 59.While it was the defendant’s stance that 1st plaintiff should not be appointed in the light of the possible future disputes among the plaintiffs, it appears to me that even if there had been any quarrel among the plaintiffs, that was water under the bridge. The present situation is that the plaintiffs have joined force since at least June 2021 when they engaged solicitors together to chase the defendant for an account and explanation. The 1st plaintiff’s proposed appointment is not only supported by the other 2 plaintiffs but also Kwong Wah Hospital. 60.Further, given the nature of the remaining assets (mainly shares and cash at bank), the administration of the Estate should be relatively straight forward, and there should not be much room for argument. 61.In these circumstances, I am of the view that it is appropriate to appoint the 1st plaintiff. ORDER 62.By reasons of the aforesaid, I make the following orders:
COSTS 63.Costs should follow the event. 64.The plaintiffs’ counsel asked for indemnity costs against the defendant. 65.While I accept that the defendant has indeed failed in his duty as executor of the Estate, I hold the view that this is not a case which warrants indemnity costs. I therefore order on nisi basis that the defendant shall personally pay the plaintiffs the costs of and occasioned by these proceedings, to be taxed on party and party basis if not agreed. 66.The above order nisi shall become absolute in the absence of application to vary (which, if any, shall be made by letter, and will be disposed of on paper) within 14 days hereof. 67.The Hospital Authority has instructed solicitor to attend the December Hearing in an attempt to apply for various orders. However, neither the Hospital Authority nor Kwong Wah Hospital has applied to join the present proceedings as a party. There was therefore no standing for the Hospital Authority to make the said applications at all. With the consent of Ms Chan who appeared for the Hospital Authority, I make no order as to the costs of the Hospital Authority.
Ms Eugenia Yang, instructed by Cedric & Co, for the plaintiffs The defendant was not represented and appeared in person Ms Felicia Chan of Johnson Stokes & Master, for the Hospital Authority (on 30 December 2024) |
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