THE HONGKONG TELEGRAPH, FRIDAY, FEBRUARY 25, 1949.
JUDGMENT FOR PLAINTIFF
IN WOO CASE
Purchaser's "Good Bargain"
Judgment for plaintiff was delivered by the Chief Justice, Sir Leslie Gibson, at the Supreme Court this morning in the action brought by the Shui Hing Company, 187-195 Des Voeux Road Central, against the solicitor, Hangkan Kwintung Woo, of Messrs Woo and Woo, Prince's Building, for specific per- formance of an agreement for the sale of No. 48 Kennedy Road and that Woo execute a proper conveyance of the pro perty.
of Koo Shui-ting, alias
The plaintiff, Liu Lan-fung, alias Liu Aḥ-lan, widow Koo Wan-shing, was represented by Mr H, G. Sheldon, KC and Mr D. A. L. Wright, instructed by Mr E. S. C. Brooks (Hastings), while the Hon Lea d'Almada, KC and Mr Brook A. Bernacchi, were instructed by Mr Woo.
Giving judgment, the Chief Justico said:
Ja thin action the plainum, Liu Len Fong clies Liu Ah Lon, as administratrix of the extate it her tate rustrand Kod Su Ting, allas Kon Wan Sing, etninin, specific preturianer of an agreement dated August 171, 1943 und inade between her late husband and tie defendant Mir 1. K. Woo for the kale by the defendant of a house No. 48 Kennelly Rund.
on
un
ไฟ
When
tu
There was no eviserice whatever support the allegation that the purchases was fluential, with the Japanese and um aurprised that this allegation like the allegation of fraud was not with- drawn. Thus bring so, why should e puvelinsee, any more than the vendor, he willing to defy the Japanese law at the risk of long turpilsonirai or heavy fine? And if the parties were prepared to F the rink, why did they not show the purchase price in dotiers in the agree- ment since it was so eininted that the the agreement Harit. as apposed to
to be Japanese kuigament. would have shown to the Japanes? The assignment In English form was for use after the Japanese oretipation and the purchaser would have an interest to live pistelinge price expressed its dollars, but, nes 12 document par excellence was not for Japanese eyes, why was the vender prepared to neknowledge payment te fall?
The agreement was executed on behalf of the defenitent by his attorney Chan Un CV, o defendant blusell being at the line in Free China, whither he had gone by reason of circumstances
Jnvarions cruated by the Japanese Bonghunc. The agreement specifies the purchase price as 60,000 Japanese military yen and providne for the payment the date at the agrosement of 30,000 yen un account of the purchase price payment whi duly made and la ac
the endoragment knowledged by apteement. The purchase was to be cum pleted within a month, but time not of essence of the agreement,
The defendant undertook to give n usle free from encumbrance clause of some Importance because pre-occupa- were outstanding to the Un mortgages
The balanca ot tune of $103,000.
In due price wne Uze
purchase
the military pald
outstanding in of Amount
pold in military the mostHagen ven, the first mortgages executed a se assigament In Englis form and assign- ments of the property in favour of the
371 English," purchaser ware executed Chinese and Japanese forms. For me reaken the transaction was not carried to completion by registration,
In
wost
EVIDENCE, DOUBTED
Why' WON the payment of the pur- chase price accepted in yen--30,000 yen being paid the very day the agronment was signed? Duress and undue influence are alleged ut even Chan Un Chau'n own evidence (and, as I have indiented. him as a nut prepared to accept completely truthful is not evidence of Mr P. Y. Woo dures or undue influence gave the parties legal advice an to their position under Japanese law (which they the they signed clearly knew before
hald and Koo agreement for sale) nothing.
Then again, if the purchaser shonourable had been guilty of the
nekles alleged, why 11 that the de fendout,
himself a very experienced willing 10 pass 1274- solicitor. WAR
in Koo Wan challenged a statement Sing's letter of October, 1943 that the price was 60,000 yen in military nutra equivalent to $272,000 in Hongkong cur rency" and why Is that neither de- Jendant nur als attorney (a solicitor's Clerk ever put in writing the allegation price thould have thethat the purchase
bren paid in dollars nl May, 197
Juatier suggestion in that the
and had
either
with the Japanese authorities or under the the British law of Hongkong, and difficulty now in that by season of set. toh 3 ond 11 of the Debtar and Credi
Udiniane, (Occupation Perlud)
pru 1948, the mortgage debts on the perly have not been discharged.
for
PLEA ABANDONED
It was pleaded on behalf ut plaintif that by a letter (written on
30 October, 1943) the defendant railed The
the sale of the property, but Air Sheldon was being discured veranity
is not enough to explain for the plaintiff) abandoned this plen, been referred to cousuel. Perhaba in
20, but that
written fernal In the course of the hearing.
The tufendant has roughi to meet the absence of note
have no doubt that the reason the plaintiff's
number of protest clair by deteners with which ist now deal. why the agreement provided for pay- The pleadings on behalf of the defenses in ye and payment was in fact dant were amended in less, than three made in yeu tas were the purported re- tinen--onre Urfore
the hearing
arch
twice during the hearing, I cannot com meg this system of pleading but the Amendments were allowed and must m condern accordingly.
Among the amendments was an legation that endorsements Bad made on certain correspondence fraudulent Intention."
payments of the mortgages) was simply that the parties contracted an the basi ot the Japansore Jaw.
Since its case is before nie in first instance, I have thought it right to make al. findings of fuel in respect of tallers
which constitute the defendant's
been
"with
The nature ui
would have operated to divent the legal estate,
have No doubt the nortgager would remained table
personal un covenants to comply with section 3, butt as regards the legal estates of the inort-
agres action
merely provides that the mortgages sugli be deemed n 1 June been extinguished, 1.0, creates a legal fiction, and the cunno- quences of this legal fetion are set out in section 11(2). There is nothing in section 11(2) to suggest that where, un- der the law existing before the Or- dinance, a mortgagee han lunt the legal; estate in favour of a purchaser. the purchaser must provide security. The vendor coull not revive the mortgage onec a purchaser had acquired the legat estate and all he could do, or be or dered by the Court to do, would be to replace the anortgage with Necurity,
15 an agreement irated In
aquivalent
ny be trus- certain circumstances Victo la na absolute
even though impossibility of performance.
Cinema Showing "Sins Of India" Film Picketed
•
New York, Feb, 24-Indlan #tudents In New York plcketed a cinema in Times Square today in protat against the showing of the film "India Speaks," which they described as "un-American" and a "hindrance to Indo-American friendship."
The students distributed protest pamphicis outside the cinema. standing in front of candy hoardinge showing virtually nude while
men being "sacrificed to Buddha,"
women
Film Clamics of the The distributors of "India Speaks," Americas, claimed today that the film was a "straight travelogue with no fiction." They said it had been filmed in India "10 or 15 years
AED" and had recently been reissued,
Itself and ita advertising, The students objected to the film claiming that there was abscenity in both. The advertising con- tains such "blurbs" as these: "India-Mother of 10,000 Blm India. Speaks of Mountains alive with Monks and Polyandrous Women;" like Cattle-and. Catilo "See where White Women are treated
are sacrificed to worshipped like Gods:" "Bee where White Girls Buddha."-Reuter,
Thorez's "We Won't Fight" Statement
Sent To Prosecutor
Paris, Feb. 24.-The French Premier, M. Henri Assembly tonight Queuille, told the French National
that the Communist leader, M. Maurice Thorez's state- come to France, ment that, "should the Soviet Army
it as did the French workers would behave towards workers of Poland and Rumania," had been sent to the Public Prosecutor's Office.
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The Premier made it clear that it was the law officers to decide whether to take any action.
Lord Simon, in Cricklewood Property and Investment Trust Ltd. v. Leighton's M. Thorez had repeated his state-
Investment Trust Lid, 1915 A. C. 211 at
earlier this
and
220 put forward one of many denni-ment, originally made tirns of the doctrine of frustration in week, in the Assembly today. Five the following terma-
hundred and fifty French deputies from Communists to Gaullists extreme right-wingers rose to in- when M. agreement dleate their Eduoard Herriot, the Speaker of the Chamber, asked if the House wished for an immediate discussion of the speech.
"Frustration may be defined as the pronature determination of an agree- ment between parties, inwfully entered into and in course of operation at the lime of its premature determina- tion, owing to the occurrence of an Intervening event or change of cir- cumalancer no fundamental as to be regarded by the law both as striking at the root of the agreement, and as entirely beyond what was contemplated by the parties when they entered into the agreement."
Now, of course, neither side could in
Enet have contemplated the enactment
mattered even if he had contemplated
2
of the Ordinance. As far as the pur- chaser was concerned, it would not have matter of indifference to I. 1 was him how the mortgages were discharged en lurt as he got a good tile. As far as the vendor was concerned, he could not have avoided the effect of the Dr. dinance on te llablilty to the mortgagees whether he made the agreement or not.
NO FRUSTRATION
To su far as the sale of his property
is involved, apart from the question of
before
new
MAN SWEARS
INNOCENCE
Until His Past Record Is Produced
A man
M. Queullie warmed the Commun- ists that the Government would not tolerate any campaign to demoralise
with three previous who come "All those the Army. into conflict with the law, under-convictions for larceny and one
of
a deportation mining the morale of the Army, will for breach
mcts have to answer for their the Courts of Justice," he declared. order, but who claimed that he After three years of Communist had never stolen anything in his re-life, was sentenced to 15 months confidence had now agitation,
Mr d'Almada nt Central turned to the country, he said. The by Communists were less able to ex- this morning for larceny and ploit economie discontent and they breach of a deportation order. were therefore looking for
He was Leung Wing-man, a 30- means of continuing their "iniqui-
year-old foki of the Shanghai Trun- tous-propaganda," he added,
sport Company, who stole -a-table the from napkins cloth and
Pedder Company, Lace Swatow Street, on February 22.
Defendant called a Police officer to give evidence on his behalf, PC 2542, Sit Wun-cheong, said he knew defendant when he was in Shanghai. As far as he knew, defendant, was
bustnessman. He did not what happened to defendant He left Shanghal
Earlier, a right wing deputy, M. the mortgages, nothing has happened to Pierre Andre, urged the Govern- change his position. No doubt he hoped.ment to outlaw the Communist
when he made the agreement, tu pay
off tie mortgages out of the purchase Party. first
price and possibly he would not have
M. Thorez said he welcomed the made the agreement 1 ho could have foreseen the enactment of the Ordinance opportunity to repeat his statement, but cannot regard these mental re- servations on mailers not dealt will in Ile said: "The workers of France and the friends of peace will do the agreement as geing to the root of
against the agreement and i am therefore of everything to render war oplaton that there was no frustration. the Soviet Union not just dimcult
There remain the questions
The Communist which but impossible." fairness and hardship-mallers arise when an equitable remedy a benches, applauded the statement sought. Now there is no evidence that loudly.
e of datence, but actually cechia to in to be extremely doubiful whether that line of defenen could succeed even rual agreement between the parties was that the purchase price should be pax in Hongkong dollars. I say this because uf n of the teline of section 4 tb Deblur and Lerditur (Occupation Period) effect of that 1948. The Ordingtow aculun in that where an obligation has bef cured during this occupation period to pay a debt in Hongkong cur- iency and payment is made which is the equivalent incurrency cal- Tale of exchange culated at the prescribed by the occupying power, then the payment in occupation currency is valid discharge. It will further be noted that while in some sectiune provi
the fraudulent Intention was neither it bad been prepared to find that the
There WIR NO pleaded nor apparent, evidence tu nuppart the allegation and Mr D'Almada, who led for the defendanı, properly and wisely abandoned this line of defence. Allegations of fraud are not lightly to be made,
the The first broad basis on whichri plaintiff's claim is challenged is that the Frat agreement between the parties was
price that the purchane
Le should K$272,000 the figure G1,000 yen being inserted
comply to
with Japanese law. An order dated May 16, 1943, and effective from June 1, 1043, made military yen the only permissible currency and forbade the use of Hongkong dollars un der heavy penalties-the maximum being
roade for payments under "dures
15 years or a na of 30,000 yen. The or foercion as defined in section of official rate of conversion was four Hong.
the Ordinance, no such provisun is made kong dollars to one yen- that the
in section 272.000 dollars was in fact the equivalent
1 turn now to the second line of sie- of 08.000 yen at the oficial rate.
fence, which is that Chan Un Chau and Coupled with this defence, a number of
the purchaser on the one hand and the were divided other matters are pleaded-that the de-
defendant on the ollier fendinat was not aware that $3,000 yen
of 272.000 dollars by the line of war and that therefore was the equivalent
Chat: Un Chau's power of attorney and the par-
Vie thinga tune under it were invalid tim and the correspondence between
I was legality. au Won Dailies
u! derendant ounceded on the
already defendant
הגן
thxt this argument knawered
was
adverarly to the
that the payments inde by chaser did not constitute the true value of the purchase price, that Chan Un Chag was indiged to cater into the agreemeni by the false representation of Kon Wan Sing that he would pay the purchase price in longkong dollars and that thID payments of the purchase price wero
churess Accepted under
OF due in fluence.
directly bound of course by use
decision.
Two ARGUMENTS
It seems that the persons concerned In the
negaliation of the
by the decision of the Full Appeal No. 12 uf 1948, and the
made therefore only
agreement for sale were the purchaser, the late Mr P. Y. Woo (A solicitor whe represented both slides and was citient forward ally the defendant's son), Chenk Ming
To an employer of Mr. Y. Woo and aldered lugether.
Was
ATE
Full
Court's
the
of un-
evidence
13
know ufter
When asked if he had anything I am a low- to say, defendant soul: abiding person. I have never stolen What's more, anything in my life.
I am a Christian and Christians are not allowed to steal
Christianity."
on trade "Don't
"I am Mr d'Almada. observed
you satisfied on the evidence and are convicted.
of the property purchase price
M. Thorez said his statement had fixed by the agreement was unfair or inadequate. The "black Frket ex aroused worldwide attention because change for yen was falling in the latter there was at this time a new threat part of 1043 but there is no as to the extent that the "black market" of war, a war prepared cleverly by Japanese the imperialist powers- war in rate ad diverged from the offietal rate by the date of the agreement. which France was asked to be the There is certainly no evidence une ale ally of Germany and Spain.
The capitalist countries were eu-
When defendant's record was pro- greed price was so grossly inadequate
gaged again in a fight for markets duced, it showed that he had been overseas which would inevitably deported in 1940 Three lead to war uniets the people of the punctuated defendant's
vious to that. world reacted. Referring
an to be evidence of fraud. See Hailsham
Vol. 31 page 371 paragraph 423 and the cases thore died. All that has happened tx that it will now be much more ex- pensive for the vendor to carry out the agreement than he had expected, but, as I have pointed out, the vendor
of the
would have to meet this extra expense whether the agreement is specifically performed or not. He la merely losing the chance of citing off againat tus extra expense the profits he could, but for the agreement, have made by selling in the more favourable market of today. int had wo happened that the value the vendor would certainty Price property had dropped below the suffer no hardship If he was now asked to complete. In fact the price of the property has soared, and this being
A the vendor has made a bad bargain. bad bargain in itself cannot, amount th unfairness or hardship and there hu teetrine of equity to deprive a purchaser of a gond bargain if it has been fairly made
1 follows that the plaintiff is entitled
ARTee specific performance of the
and to the costs of the artiin. ent
the broker in the transaction), and Chan reason of the operation of sections 3.
Un Chau (the defendant's Cheuk Ming To was concerned only in
altorney).
the early negotiations before M . Y. Woo's arrest by the Japanese--the date
of which was variously described a May, June or July, 1043, and Rave
This lings me to two arguments put y ir D'Aiada for the defen- dant which may conveniently be con
are Thni by and Creditur 29-13, Ordinance, ferlod) (Occupation
light of the other the considered in
either circumstances, of the case,
<21 octecment was frustrated or the forcement of it would be unfair and
and 11 of the
to
the
evidence that the price offered by the would work great harush on the de-
purchaser was 08,000 yen with an advance | tendani.
of 50.000 ven. The sud P. Y. Wao, hot
A regards the question of frustration,
not the thought) the purchaser men- the defendant has pleaded
doned the dollar equivalent, Chan Un Qnu Kaye evidence That the uffer. prior to Mr P. Y. Woo's arrest, whe
240,000
$250,000. that after Mr. P. Y. Woo's release in August, 1943 the nego- tiations Were continued by the pur- chaser and Mr P. Y. Woo, he (člun Un Chau) being present at some of the talke, that the price was inerented tu
was agreed that the price should, be
(and tr
D'Almada argued that it was an implied tern of the agreement for sale that the encumbrances should be pat ir t of the purchase money and in the same currency. Sheldon for the platf readily agreed that it was the ordinary tractice soltetturk offices for mortga ces to be paid off there and then out or the purchase money, but terina atu
$270,000 with brokernge of $2,000, that it only to be ampiled in opreements where necessity so demands, and I am unable an alleged in this case.
pald in dollars although this, wis pro- to agree that there was an implied term
hibited by Japanese law, and that he would not have signed the agreement
Given that there was no implied term,
if he had not thought the price was to Mr D'Alinada's carefnly reasoned I-
be paid in dollars, or if he had thought ment un frustration is weakened, bu
that the purchase price was Insußelent to discharge the mortgages,
ASKED TO TAKE YEN
Just at consider his second line of approach, which is that rections and it are provisions operating retrospectively tu after the law in such a way as to Dealing with the payment of the ad- strike at the very rout of the agreement vance of 50,000 yen on the day the His first preliminary point was that the agreement was signed, he explained that agreement was not inverable and that Kon Wan. Sing pall be had no dollars
It the agreement that the title should be
and asked him (Chen Ứn 'Chan) it he free from encumbrances was frustrated that he (Chan Un by the Ordinance, this whole agreement
would accept yen,
Chinu) siked Me P. Y. Woo if he had
to accept and Mr P. Y. Wos advlied him to do so saying “You must accept, other- wise you will get into trouble" and that, Koo Wan Bing" said nolling. Chan Un Chau, apparently regarded" Koo Wan
and
Bing's silence as winister because he had heard that Kos Wan Sing's firm had been involved in an incident In the anti- Japanera rists of 1937-1938, and, by im plication, thought Koo Wan Sing Influence with the Japanejo, Chan Un Chau said he accepted the balance of the purchase price in yon without
being anything
ald--the Implication being that he continued under the durcas with นาย Brat alleged in connection
payment.
on
would be at an end, Tie referred to Denny, Moll and Dickson Ltd. v. James B. Fiaper & Co., hid..1946 A.C. 265, 1 Sila second this #gree on
point, preliminary point was that sections 3 and 11 are retrospective to cover the mortage debis in this case, and I agree also thus point,
14 WAY Tho clear for Mr D'Alinada's main conten- tion and I have to consider whether sections 3 and 11 do in fact strike t the root of the agreement and so fru#- trate it
I did not understand Mr D'Almonda to contend that performance of the agrees (given that ment became impossible there wax na implied term as alleged) and I do not think that there was in
I allowed the évidence of the alleged fact any impossibility in performance.
secret agreement or representation that
There is clearly nothing in the Or
a tille free from encumbrances from being given now If
the purchase price would be paid Indinadce to prevent
dollars to be given solely on the bat
that I thought it might disclose some the mortgage debts are discharged at
ground on which the defendant night
be able to resist the equitable remedy of specific performance. Having care fully considered the evidence, however, I am of the clear opinton
inst the written agreement was the only agree- ment between the parifes and that, even if any question of payment in dollare Itad arisen prior to the signing of the bandoned It had been agreement,
was signed. when the agreement
nat
the rale of exchange provided for in the Ordinance. No reason has been given why the agreement could fiave been specthcally performed before the Ordinance on the basis of the dis charge of the mortgages by the pay- mente in yen in fact made. Once the the then legal
hed, funder existe existing law) been got in from the mori- ages and the property assigned to the
suction purchaser, I do not think
11
SIDE GLANCES
gallinath
1-13
crimes carter pre-
He admitted his previous record to the Atlantic Pact. M. Thorez said: "Whatever may be with a laconic "Yes."
Defendant was ordered to be re- its final form, there will be a pro- gramme of armaments lend-lense to deported. Western Europe. That mema that the Soviet nilitary bases against Union will be set up from Norway to Turkey.
Radio Hongkong
"We still believe that the Ameri- H.K.T. can people, like any other people, do not want war,
.
0.00 Programme Summary: 0.01, Ivor It is their ad- Novello and if Music (BBCTS): 0.36. ministrators who have alrendy made Cantonese by Radio given by Man Lee their choice-war-and who want to see their chole endorsed by their people and by, the peoples of other countries."-Reuter.
By Galbraith
COPE. 1949 BY MEA SERVICE, INC. T. H. REC. U. B. PAT, OFF.
"Oh, we'll box and wrestle and play leapfrog and jump. ing jack on the beds, Mrs. Jones-don't worry, they'll bo tired out before you got home!"
Wai Lant and Mr S. K. Lee (Studio); 650, Charlle Spivak and is Orchestra;
Analy Sports Preview 7.00, World News and News
7.93 Varicy Bandbox" ondon Relay: 7.15. (Stridos;
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Mail Service by Air and Rurface to Peiping Is temporarily And Tientsin suspended until further notice.
Unless otherwise stated, 'registered arlicies and parcel posta close 30 minules earlier than the ordinary mail. I malls close before 10 am, registered and parcel posts close at 3 pra on the previous day. Mailz are closed at Kowloon Central Post Umce, half an hone earlier than the aro closing times,
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ZATURDAY, FEBRUARY 20
Closing Times By fr Swatow and Amoy, 0,30 am. (reg); BAL jord).
Shanghai, san. (reg); 920 a'm, tord),
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p.m
Bangkok, 8 pm.
Closing Times Dy Ken
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Manda RH...
Caylon, Madagascar, Mauriilus,
336
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MORE RIOTS FEARED
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}
the
to
The witness, Mr- P. R. Pather, secretary of the Natal, Indian Or- ganisation, old pamphlets were being circulated among Africans
rise against Durban, Feb. 24. Strong urging them to
Indians tomorrow. patrols of armed police and]
He urged the Commission armoured cars, hacked by naval tale
The Chairman, "stem steps," and military detachments, start- Justice Van Den Heever, promised ed patrolling Durban today to to "impress on the proper authori
ties that every precaution should be anti-Indian taken against the recurrence of the check feared now rioting by Africans.
Police reinforcements are 'coming
deplorable events."
Affairs
South Africa's Economie in from Pretoria by special traine Minister, Mr Eric Louw, sald tonight
that Indian newspapers "particularly disgraceful"
special
tonight but many Indians have started fleeing back to refugee camps.
An Indian witness at today's session of the Commission Inquiring
published accounts
of the recent Durban-Indian riots.
He told the National Assembly in Capetown that zealous correspon-
Into last month's riots, when 120 dents from the United States and Africans and Indians lost their lives, elsewhere had assisted General Jún anti-Government East forecast a new laughter of In- Smuts' intense
diaris, and said Africans were openly campaign with the object of under
oversens confidence Gaying there would be more riots mining
South Africa-Reuter. by the weekend.
and Bouth Africa, Karachi and Bombay,
3 prite, 3 pr.
Bangkok, p.m.
in
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