Read the full judgment text of HCA 007440/1984 on BabelCite. This High Court CFI judgment was delivered on 18 May 1988 before Godfrey J.
Civil law – trusts – resulting trust – ancestral worship – perpetuity – charitable trusts – trusts for welfare – unincorporated associations – tongs – Hong Kong immoveable property – Statute of Frauds – Properties 152, 154 and 156 Queens Road Central purchased in 1875 by settlor Ip Koo Chi and assigned to Yip On and Yip Yuen as trustees of two named loan associations (Ip Cheong Kwong Tong Loan Association and Tung Yan Sheen Tong Loan Association) which plaintiff alleges never existed – 1875 Rules stating properties were donated by settlor with rents of 152 to supplement shortfall in ancestral worshipping fund of Ip Sze Shing and rents of 154 and 156 to assist in common welfare in village – whether trusts of indefinite duration for ancestral worship of income of immoveable property in Hong Kong are valid – held no, following Lau Leung Shi v. Lau Po Tsun; trust fails and there is a resulting trust for the settlor – whether a gift for common welfare in the village is a charitable trust – court considers Goodman v. Saltash Corporation and In re Moss but on the evidence settlor's intention was to benefit his clan in the village rather than inhabitants generally, so following In re Compton, not charitable – whether tongs are corporate or quasi-corporate entities – held not, following Neville Estates v. Madden and In re Recher's Will Trusts – 4th defendant not entitled to maintain argument for charitable trust in face of Attorney General's refusal – plaintiff has no interest in personal capacity but entitled to declaration as representative of settlor's estate – Properties declared held on resulting trust for estate of settlor – personal representative to be appointed, transfer of properties ordered, accounts to be given, settlor's estate to be administered, 1977 and 1981 actions to be dismissed – further consideration adjourned.
Legal issues: Validity of trust of indefinite duration for ancestral worship of immoveable property in Hong Kong · Whether a gift for "common welfare in the village" is a charitable trust · Whether the tongs are corporate or quasi-corporate entities · Whether the 4th defendant can maintain an argument for charitable trusts · Whether the properties are held on a resulting trust for the settlor's estate
Outcome: Declaration that the first and fourth defendants hold the three properties on a resulting trust for the estate of the settlor Ip Koo Chi; further consideration adjourned.
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