Wong Kot Ki v. Fantastic State Ltd
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CAMP 237/2025, [2026] HKCA 1910 On intended Appeal From [2025] HKDC 345 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF APPEAL MISCELLANEOUS PROCEEDINGS NO 237 OF 2025 (ON AN INTENDED APPEAL FROM DCCJ NO 4604 OF 2015) __________________________ BETWEEN
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________________ JUDGMENT ________________ Hon Ng J (giving the Judgment of the court): A. Introduction 1.This is the plaintiff’s renewed application by summons (“Summons”) dated 5 December 2025 for leave to appeal against the judgment (“Judgment”) of Deputy District Judge Louise Chan (“Judge”) dated 10 March 2025[1]. In the Draft Notice of Appeal attached to the Summons, the plaintiff seeks the following (“Order Sought”):
2.The critical issue in this case concerns the terms of an oral agreement (“Agreement”) between the parties over the demolition of a fence wall (“Old Fence Wall”) and the construction of a fence wall (“New Fence Wall”). In the Judgment, the Judge accepted part of the plaintiff’s case and part of the defendant’s case. The Judge ordered the defendant to pay damages for breach of the Agreement only in the sum of HK$66,263.23 for the costs of labour for plastering the New Fence Wall with tiles. 3.On 7 April 2025, the plaintiff issued a summons to seek leave to appeal against the Judgment before the Judge. On 24 November 2025, the Judge handed down a decision[2] (“Leave Decision”), refusing the plaintiff’s application for leave to appeal. 4.After reviewing the parties’ respective written submissions, we are of the view that it is proper to dispose of this application on paper in accordance with Order 59, rule 2A(5) of the Rules of the High Court (Cap 4A) (“RHC”). B. Background and the parties’ case 5.The factual background has been set out comprehensively in the Judgment and need not be repeated in full. For present purposes, we will highlight the following. 6.In November 2001, the plaintiff became the registered owner of a plot of land and a house erected thereon in Tai Po Fung Yuen Village (“plaintiff’s Site”). There was a fence wall built for demarcating the plaintiff’s Site from neighbouring plots ie the Old Fence Wall. The plaintiff’s Site was under construction from around March 2009 for his new village house (“plaintiff’s House”). The construction finished around late 2009 or early 2010 followed by another year-long renovation. 7.The defendant was a developer and acquired a piece of land next to the plaintiff’s House (“defendant’s Site”) in the 2000s. It commenced a residential development known as Mont Vert in or around 2007. The defendant’s case was that in 2007, it was informed by the Lands Department that the Old Fence Wall illegally encroached on the defendant’s Site. 8.Both parties agreed that in 2008, the defendant’s manager, Mr Alex Leung (“Leung”) approached the plaintiff to discuss the issue of illegal encroachment and Leung suggested to the plaintiff that the defendant would, at its own expense, demolish the Old Fence Wall and erect a new fence ie the New Fence Wall on the plaintiff’s Site. No agreement was reached in 2008. 9.In the Amended Statement of Claim, it was pleaded:
10.Pausing here, it can be seen that the plaintiff’s Agreement as pleaded in para 5(a) did not include a foundation for the New Fence Wall. While it was pleaded that in a meeting in or about December 2009, the plaintiff and Chow discussed the details of implementing the plaintiff’s Agreement including a one-foot foundation below ground, it was not pleaded that the discussion resulted in any further agreement between the parties. Further, in the Amended Defence, it was pleaded at para 8(c) that Chow did not represent the defendant in any capacity. This was not challenged by the plaintiff as such. In the Amended Reply, the plaintiff had only pleaded he had no knowledge of it and asserted that Chow, among others, held himself out as the defendant’s representative in entering into negotiation with him. No particulars were given as to how Chow held himself out as the defendant’s representative. As a matter of well-established law of agency, a person cannot hold himself out as an agent of the principal. Only the principal can. 11.In the Amended Defence, it was pleaded:
12.By letter dated 16 March 2015, the plaintiff sent a letter to the defendant asking it to complete the unfinished construction works, which this court takes it to mean or at least include a foundation for the New Fence Wall, failing which the defendant should compensate him $100,000 so that he could hire someone to do so. 13.By letter dated 9 April 2015, the plaintiff’s solicitors, Messrs. Rene Hout & Co, sent a letter to the defendant. In para 4 of the letter, it was alleged the New Fence Wall was without foundation and was of poor quality and workmanship so that many cracks appeared. In para 6, the defendant was requested to rectify the damage to the wall at the defendant’s costs and expenses or pay the plaintiff $100,000 to enable him to engage his own contractors to make good the damage. 14.On 8 October 2015, the plaintiff issued the Writ of Summons in DCCJ 4604 of 2015. C. The Judgment Below 15.This court shall set out below those findings by the Judge which are germane to the Orders sought. 16.Based on inferences drawn from the evidence, the Judge found the plaintiff and Leung reached an agreement in principle at the Mid-2009 Meeting, which became binding in December 2009 when the parties orally confirmed the date of commencement together with other details of the project. The term of their agreement was for the defendant to erect a new fence wall which would look the same as the Old Fence Wall. 17.The parties agreed the labour costs of the tiling work would be borne by the defendant while the plaintiff would source the tiles at his own costs. 18.Judging from the striking similarities between the Old and New Fence Walls, the Judge accepted the evidence of the plaintiff and found the parties did agree that the new fence wall would be re-erected to its original state. 19.The Judge found the parties never reached any agreement as to the foundation based on inter alia the following:
20.The Judge also rejected the plaintiff’s evidence that he bought a second batch of tiles or the second batch was ruined by prolonged exposure under the sun. 21.In the premises, the Judge only allowed the plaintiff’s claim for the costs of plastering the New Fence Wall with tiles, which was valued at HK$66,263.23. D. Legal Principles 22.Under section 63(1) of the District Court Ordinance (“Ordinance”), leave is required to appeal against the Judgment to the Court of Appeal. Under section 63A(2) of the Ordinance, leave to appeal shall not be granted unless the court is satisfied that (i) the intended appeal has a reasonable prospect of success, or (ii) there is some other reason in the interests of justice why the appeal should be heard. 23.Leave to appeal is not lightly granted. The court must be satisfied that the appeal has a reasonable prospect of success or there is some other reason in the interests of justice why the appeal should be heard. Reasonable prospects of success involves the notion that the prospects of succeeding must be “reasonable” and therefore more than “fanciful”, without having to be “probable”: SMSE v KL [2009] 4 HKLRD 125 at [17] per Le Pichon JA. 24.The principles governing an appeal against a trial judge’s findings of fact are well-established. 25.In Ting Kwok Keung v Tam Dick Yuen (2002) 5 HKCFAR 336 at [42], Bokhary PJ held:
26.Lau Chung Kei v Lau Miu Ting [2023] 1 HKLRD 443, which is an appeal against a judge’s ruling that an oral agreement existed, G Lam JA held that:
27.In Yu Man Fung Alice v Chiau Sing Chi Stephen [2021] HKCA 1456 at [33] -[34], Kwan VP observed:
E. The plaintiff’s Draft Notice of Appeal 28.The plaintiff has advanced the following proposed grounds in his draft Notice of Appeal:
F. Discussion Ground 1 29.In his written Statement, the plaintiff contends inter alia that:
30.This court does not agree that the Judge was plainly wrong in finding the Agreement did not include a one-foot foundation below ground for the New Fence Wall. 31.First, the foundation set out in the LYL Quotation was one and a half feet high, instead of one foot as pleaded by the plaintiff and the LYL Quotation was issued more than one year before the date of the Agreement as found by the Judge ie December 2009. This is not challenged by the plaintiff. 32.Even accepting in 2008, (i) the LYL Quotation did include a one and a half feet foundation and (ii) Leung did agree in cross-examination that in 2008, the defendant contemplated building the New Fence Wall with a foundation, it is a non sequitur to infer the parties had agreed in December 2009 that the New Fence Wall would have a 1-foot foundation. The weight of the LYL Quotation is further undermined by the fact that (i) it expressly excluded plastering the New Fence Wall with tiles, contrary to the plaintiff’s case that the New Fence Wall should be finished with tiles and (ii) LYL was eventually not chosen by the defendant as the contractor for the works in question. 33.Second, even assuming the plaintiff had knowledge of the foundation prior to the Agreement in December 2009, that is not enough. It is necessary for the defendant also to have knowledge of the foundation prior to the Agreement in order for the plaintiff’s case to have a leg to stand on. In this regard, the Judge found as a fact that it was likely that Leung never inspected the Old Fence Wall in detail, but only surveyed it from afar, and thus had no knowledge of the foundation. This is a finding of fact that the Judge was entitled to make. 34.Third, none of the arguments raised in relation to Ground 1 addressed the Judge’s finding that the plaintiff witnessed the construction of the New Fence Wall without first constructing a foundation and did nothing for five years. 35.To conclude, Ground 1 is a classic example of an appellant (i) asserting a judge’s decision is manifestly wrong because the judge did not accept his evidence or submission and (ii) complains about a judge’s weighing of the available evidence. In reaching her factual findings, the Judge has carefully assessed multiple strands of evidence including inter alia the LYL’s Quotation; photo exhibits, and the plaintiff’s conduct during the construction of the New Fence Wall[5] and after its construction[6]. The findings clearly formed part of a factual assessment open to the Judge, which could “reasonably be explained or justified”: Yu Man Fung Alice v Chiau Sing Chi Stephen at [33]. 36.Having considered the arguments raised in relation to Ground 1, we do not consider any of them amount to the type of error described in Lau Chung Kei. We therefore do not see any scope for us to overturn the Judge’s finding. 37.Ground 1 is without merits. Ground 2 38.By Ground 2, the plaintiff contends that the Judge erred in interpreting the Agreement regarding the phrase “original state and condition” or in Chinese「原樣」[7]. The Judge is said to have erred to hold the phrase “original state and condition” should be understood as “the original look” and the term「原樣」to bear the same meaning as「原貌」,「同原本一樣」 or「照樣」. The Judge should have construed “original state and condition” and「原樣」to include inter alia the one-foot Foundation as the Old Fence Wall. 39.In his written Statement, the plaintiff contends that the Judge has disregarded the factual matrix and knowledge available to the parties at the material time. As far as factual matrix is concerned, this would include (i) the knowledge of the parties at the material time, (ii) the general objective of the Agreement (iii) the reasonableness in interpreting “original state and condition” or 「原樣」and (iv) the respective bargaining power of the parties. As far as knowledge of the parties is concerned, there is no explanation as to what knowledge the plaintiff is referring to. This court can only take it to mean the plaintiff’s and the defendant’s alleged knowledge of the foundation as in Ground 1. 40.This court does not agree. 41.First, in this court’s view, Ground 2 is just another way of putting Ground 1. In Ground 1, the plaintiff contends the Judge erred in finding the Agreement did not include a one-foot foundation for the New Fence Wall. In Ground 2, the plaintiff contends the Judge erred in interpreting the Agreement as not to include a one-foot foundation for the New Fence Wall. If Ground 1 fails as we just hold, it is difficult to see how putting it in another way and dressing it up as a separate Ground 2 can succeed. 42.Second, the plaintiff has failed to explain in his Draft Notice of Appeal or written Statement how the so-called factual matrix can lead to the conclusion that the Agreement should include a one-foot foundation for the New Fence Wall. In dealing with Ground 1, this court has already ruled the Judge was entitled to find as a fact that it was likely that Leung never inspected the Old Fence Wall in detail, but only surveyed it from afar, and thus had no knowledge of the foundation. The other so-called factual matrix ie general objective of the Agreement, reasonableness and the bargaining power of the parties are all self-serving bare assertions. 43.Third, the reliance on the bargaining power of the parties is particularly intriguing. The plaintiff was described in the Judgment as 66-year-old at the time of the Agreement and the owner of the plaintiff’s Site with a house on it. The defendant was a property investment subsidiary of Cheung Kong Asset Holdings Limited and the developer of a residential estate in Tai Po known as Mont Vert. Further, the Lands Department found the Old Fence Wall had illegally encroached on the defendant’s Site so, one way or another, by negotiation or litigation, the Old Fence Wall had to be demolished. It is unclear how this kind of respectively bargaining power can lead the Judge to construe the Agreement as including a one-foot foundation for the New Fence Wall. 44.Lastly, a judge’s task in construing an agreement is to ascertain the objective meaning of the language which the parties have chosen to express their agreement. The court must consider the language used and ascertain what a reasonable person, that is a person who has all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the agreement, would have understood the parties to have meant.[8] 45.In the present case, what the Judge had done in interpreting the terms of the Agreement was to give them their natural meaning as would be understood by reasonable people[9]. We do not see how that can be plainly wrong. 46.Ground 2 is without merits. Ground 3 47.By Ground 3, the plaintiff contends that the Judge erred in concluding, without expert evidence, that the steel bars could serve a similar purpose as a foundation in anchoring the New Fence Wall. 48.Ground 3 is without merits. 49.First, as stated at the beginning of this Judgment, the critical issue in this case concerns the terms of an oral agreement between the parties. This issue has been resolved by this court in rejecting Grounds 1 and 2. 50.Second, in the Draft Notice of Appeal, there is no explanation in the Draft Notice of Appeal or the plaintiff’s written Statement what consequences should follow from the Judge’s alleged error or why. 51.Third, what the Judge said about the steel bars was only one of a number of observations and factors which the Judge had taken into account in making her finding that the Agreement did not include a one-foot foundation. As this court said in relation to Ground 1, in reaching her factual findings, the Judge has carefully assessed multiple strands of evidence. Whether the Judge’s observation about the function of the steel bars is right or wrong, it would not have a significant impact on her resolution of the critical issue. 52.Lastly, one must not forget the plea in the Amended Defence that the New Fence Wall has not collapsed and remained standing to date and it was the defendant who laid steel bars to reinforced the New Fence Wall. The only challenge to this plea in the Amended Reply and the plaintiff’s Supplemental Statement was that (i) it was the plaintiff rather than the defendant who laid the steel bars as a temporary measure and (ii) according to his years of experience in the construction industry, steel bars were far less effective than a one-foot foundation. There is no challenge to the fact that the New Fence Wall has remaining standing to date. There is also no claim or evidence that the New Fence Wall has wobbled, sunk or collapsed. In other words, the Judge may not be wrong in ruling that the steel bars could serve a similar purpose as a foundation, let alone plainly wrong. Ground 4 53.By Ground 4, the plaintiff challenges the Judge’s factual finding that there was insufficient evidence to show that he had bought the so-called second batch of tiles and her refusal to accept the plaintiff’s allegation that the second batch was ruined by prolonged exposure under the sun. 54.In his written Statement, the plaintiff relies on (i) the oral testimony of Madam Chan[10] that the plaintiff had purchased the second batch of tiles and she had seen the same, (ii) some photos of tiles as ample proof of the plaintiff’s purchase of the second batch of tiles, and (iii) some photos said to show the discoloured tiles themselves. 55.As far as the photos are concerned, they simply show some tiles on the ground and are undated. It is unclear whether they were the first batch of tiles bought by the plaintiff and subsequently “borrowed” by Madam Chan or they were the so-called second batch of tiles. Further, the quality of the photos is such that one simply cannot tell whether they were discoloured or otherwise unusable. 56.What Madam Chan actually said in her witness statement was that around the end of 2010, she had “borrowed” the tiles previously purchased by the plaintiff and used them for her own fence wall. According to the witness statement, the tiling work of her fence wall was completed 2 weeks before the 2011 Chinese New Year. Madam Chan also said in her witness statement that she had paid the plaintiff for the tiles. In other words, she had “bought” the tiles from the plaintiff, not borrowed. Nevertheless, during cross-examination on 5 September 2024, Madam Chan contradicted herself by denying she had paid the plaintiff for the tiles: see the extract from the official transcript in the next paragraph. 57.As far as Madam Chan’s oral testimony is concerned, it is very ambiguous and does not support what the plaintiff said in his written Statement. During cross-examination on 5 September 2024, what she said about the tiles was recorded in the official transcript at p 103 as follows:
58.In this court’s view, Ground 4 is again an impermissible challenge against the Judge’s finding that there was insufficient proof of the purchase of the second batch of tiles or that they had been ruined and become unusable. 59.Ground 4 is without merits. G. Disposition and costs order nisi 60.For the above reasons, we are not persuaded that the intended appeal has any reasonable prospect of success. There is also no other reason in the interests of justice that the appeal should be heard. We therefore refuse leave to appeal and dismiss the Summons. 61.We have considered the Statement of Costs filed by the defendant’s legal representatives seeking costs in the sum of HK$98,540, which includes a brief for two counsel in the sum of HK$82,500 to prepare the 5-page statement of opposition. Since the arguments in the statement of opposition are simply an expansion of the grounds in the draft Notice of Appeal, we are of the view that the defendant should only be allowed to recover the costs for one counsel. Taking a broad-brush approach, we order the plaintiff do pay the costs of the defendant summarily assessed in the sum of HK$65,000. 62.The costs order is made on a nisi basis. Unless any party applies to vary it by summons, the costs order will become absolute 14 days from today. 63.Since this application for leave to appeal is in our view totally without merits, we make an order pursuant to RHC Order 59, rule 2A(8) that no party may request this determination be reconsidered at an inter partes oral hearing.
Ms Vivian Chan, instructed by M/s C Y Tsang & Co, for the plaintiff Mr Michael Lok and Mr Billy Liu, instructed by M/s Kao, Lee & Yip, for the defendant [3] A contractor [4] Official transcript Day 2 p 128 [5] It is not disputed that the plaintiff was present when the defendant’s workers were building the new fence wall. Should the brick foundation be of such importance to him, it is unrealistic that he would allow the bricklaying to commence without any foundation being laid [6] The plaintiff did not raise any complaint to Leung, contractors or other representatives of the defendant about the absence of foundation until 2015 [7] As used in the plaintiff’s written statement [8] Chitty on Contracts Vol 1 36 Ed. at para 16-054 quoting Lukoil Asia Pacific Pte Ltd v Ocean Tankers (Pte) Ltd (The “Ocean Neptune”) [2018] EWHC 163 (Comm), [2018] I Lloyd’s Rep. 654 [9] [55] of Judgment [10] The plaintiff’s neighbour | |||||||||||||||||||
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