SMALL CLAIMS TRIBUNAL - TYPES OF CASES

My investment company in Hong Kong is trying to charge me $150,000 in fees to liquidate an account with a total balance of only $250,000. The contract called for a 10% management fee, and they are calculating that fee based on an original principle investment amount of 1.5 million -- even though I withdrew all but $300,000 within 3 weeks of establishing the account. Since the contract allowed for a one-month "change of mind" period, I assumed that my withdraw of 1.2 million within the one month period constituted a "change of mind," if not on the decision to invest, certainly on the amount of the investment. Of course, the devil is in the details of the contract as always, but general speaking, I am wondering 1) what are my chances of winning a case like this? And even more importantly 2) will the Small Claims Tribunal even hear this type of case, or refer it to another court? I consulted a lawyer but he advised that his fees would be 20,000 just to start, and likely to be many times that amount in the end--so hardly worth the risk of going that route.


Any thoughts would be greatly appreciated!

As you say it is all about the wording of the contract....BUT there are always collateral matters to be considered (verbal agreements; emails and the like)...in ADDITION, there is the area of PUBLIC POLICY....a court can ALWAYS consider whether it is in the Public's interest to allow certain contractual terms to be enforceable...the central question being "is 10% unconscionable and against public policy?"


Small Claims court is restricted to claims of HK$50,000 so any action claiming above that must be abandoned.....you would therefore have to move to the next level of the court system (the District Court) if an action were brought.


We would be pleased to provide further advice on reviewing the specifics of the case...for example....is there any indication of professional "mis-advice" that you might contend in addition to asking for your return of funds.


Weir & Associates

Solicitors & Notaries

16th Floor Tak Shing House

Theatre Lane

20 Des Voeux Road Central

Central

Hong Kong

Tel : 2526-1767

Fax : 2868-3568

email : weirlaw@hongkonglaw.com

www.HongKongLaw.com/weirlaw