Lam Lin v Lam Lok Yiu

In Lam Lin v Lam Lok Yiu ([2012] HKEC 206) a grandfather (P1) transferred three pieces of  land in Tai Po to his grandson (D1). D1 sold two of the pieces of land to D2. P1 and his son (P2) claimed that the land had been conveyed to D1 for him to hold on trust for the benefit of family members. It was argued that P1 had misunderstood the nature of one of the documents that he had executed to transfer title to D1 (a deed of gift) and that he had never intended to make a gift of the land to D1. P1 and P2 also claimed that D2 had notice of the alleged family trust and failed to make any enquiries as to whether the beneficiaries consented to the sale. Thus, it was argued, D2 had dishonestly assisted D1’s breach of trust. All of P1 and P2’s claims failed. There was no evidence of a trust having been created. Thus, the claims against both D1 and D2 failed.

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