DCCJ 128/2024

[2024] HKDC 1330

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO 128 OF 2024

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JUDGMENT

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Introduction and Background Facts

1. By Summons dated 13 May 2024 (“the Summons”), the Plaintiff (“P”) applies for default judgment against the Defendant (“D”) pursuant to O 19, r 7 of the Rules of the District Court, Cap 336H (“RDC”). P seeks the following orders:

(1) D do pay P the sum of HK$690,000;

(2) D do pay P interest on the said sum of HK$690,000 at 1% over HSBC prime lending rate from 30 June 2022 to the date of judgment and thereafter at judgment rate from the date of judgment until the date of payment;

(3) A declaration that P was entitled to rescind and has rescinded the Oral Agreement as defined in the Statement of Claim; and

(4) Costs of the action (including costs of the Summons) be paid by D to P, to be taxed if not agreed, with a certificate for counsel; and P’s own costs be taxed in accordance with the Legal Aid Regulations.

2. As declaratory relief is sought by P, not being within O 13, rr1-4 of RDC, P must proceed as if D has given notice of intention to defend under O 13, r6(1) of RDC, although D has never filed any acknowledgement of service of the Writ endorsed with the Statement of Claim (“SOC”) which was issued on 9 January 2024.

3. As no defence has ever been filed by D, P is entitled to make this application pursuant to O 19, r7 RDC.

4. In the SOC, it is pleaded that:

(1) In 2019, P informed D’s younger sister of her interest in acquiring land / a small house in the New Territories. P and D came to know each other through D’s younger sister;

(2) On or about 28 February 2022, D introduced to P a property which she described as her house (“the House”). P had visited the House twice with D. D made the following representations to P (“the Representations”) that:

(a) The House was built in around 1970s. Originally it belonged to a university professor who later moved to the UK;

(b) The House was a “紅牌屋” and had a number plate with a red number thereon (“Number Plate”) which proved ownership of the House. Whenever officers of the Lands Department inspected the House, one just needed to produce the Number Plate to prove ownership of the House;

(c) In around 2021, D bought the House from a relative of the professor who possess the Number Plate for a price of around HK$600,000;

(d) Before deciding to purchase the House, D had consulted her younger sister’s ex-husband who was a senior officer in the Lands Department;

(e) After purchasing the House, a relative of the professor delivered possession of the House and the Number Plate to D;

(f) D then spent around HK$1 million to refurbish the House;

(g) As D’s daughter was going to study in Canada, D intended to sell the house to fund her daughter’s stu