HSBC Trustee v Fong: Estate Administration, Executor Discharge & Mortgage Authorization
In Originating Summons No 904 of 2013, the High Court of Singapore heard an application by HSBC Trustee (Singapore) Limited, the executor of the late Peter Fong’s estate, against Carolyn Fong Wai Lyn, Merrilyn Fong Wai Lye, Lynly Fong Wai Yen, Alice Lee Pei-Ru, and Fong Wei Heng, concerning the executor's discharge, payment of fees, and authorization to mortgage estate properties. The court dismissed the executor's request for discharge but granted the prayers for fee recovery (subject to reasonableness) and mortgage authorization. The fourth and fifth defendants have since filed an appeal against the judgment.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Prayer 1 dismissed, Prayer 2 granted with qualification, and Prayer 3 granted.
1.3 Case Type
Probate
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court addresses an application by HSBC Trustee to be discharged as executor, recover fees, and mortgage estate properties. The court dismissed the discharge request but allowed the fee recovery and mortgage authorization.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| HSBC Trustee (Singapore) Limited | Plaintiff | Corporation | Prayer 1 Dismissed, Prayer 2 Granted with Qualification, Prayer 3 Granted | Lost, Partial, Won | Sarjit Singh Gill, Stephanie Wee, Vincent Lim |
| Carolyn Fong Wai Lyn | Defendant | Individual | Partial Win | Partial | Kee Lay Lian, Rachel Chow |
| Merrilyn Fong Wai Lye | Defendant | Individual | Partial Win | Partial | Kee Lay Lian, Rachel Chow |
| Lynly Fong Wai Yen | Defendant | Individual | Partial Win | Partial | Kee Lay Lian, Rachel Chow |
| Alice Lee Pei-Ru | Defendant | Individual | Partial Loss | Partial | Jason Chan, Clement Tan, Seow Wan Jun |
| Fong Wei Heng | Defendant | Individual | Partial Loss | Partial | Jason Chan, Clement Tan, Seow Wan Jun |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Quentin Loh | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Sarjit Singh Gill | Shook Lin & Bok LLP |
| Stephanie Wee | Shook Lin & Bok LLP |
| Vincent Lim | Shook Lin & Bok LLP |
| Kee Lay Lian | Rajah & Tann LLP |
| Rachel Chow | Rajah & Tann LLP |
| Jason Chan | Allen & Gledhill LLP |
| Clement Tan | Allen & Gledhill LLP |
| Seow Wan Jun | Allen & Gledhill LLP |
4. Facts
- HSBC Trustee (Singapore) Limited was appointed as executor of Peter Fong’s estate on 2 March 2012.
- The Plaintiff sought to be discharged as executor, have its fees paid, and be authorized to mortgage estate properties.
- The estate includes two properties: Peak 1 Property and Peak 2 Property.
- The will and codicil outline how the Peak 1 and Peak 2 Properties are to be divided amongst the defendants.
- Numerous legal proceedings involving the Estate have led to a significant reduction of the Estate’s available assets.
- The Fong Sisters challenged the validity of the codicil in S 883/2012.
- The fourth defendant brought an action for the Peak 2 Property to be sold in OS 687/2015.
5. Formal Citations
- HSBC Trustee (Singapore) Limited v Carolyn Fong Wai Lyn & 4 Ors, Originating Summons No 904 of 2013, [2016] SGHC 31
6. Timeline
| Date | Event |
|---|---|
| Peter Fong's will was dated. | |
| Peter Fong executed a codicil. | |
| First to third defendants applied to have the Former Executors discharged. | |
| HSBC Trustee (Singapore) Limited was appointed to manage the Estate. | |
| Work done by the Plaintiff’s solicitors from 1 January 2013 to March 2013. | |
| Work done by the Plaintiff’s solicitors from 1 January 2013 to March 2013. | |
| Hearing before the judge. | |
| Hearing before the judge. | |
| Hearing before the judge. | |
| Hearing before the judge. | |
| Parties made their submissions before the judge. | |
| Oral judgment was delivered. | |
| Judgment date. |
7. Legal Issues
- Discharge of Executor
- Outcome: The court dismissed the Plaintiff's application to be discharged as executor, finding that the Estate required the services of an executor and no viable replacement was suggested.
- Category: Procedural
- Sub-Issues:
- Interests of beneficiaries
- Effective administration of estate
- Related Cases:
- [2002] MLJ 77
- [2000] 3 SLR(R) 297
- [2010] ONCA 172
- Payment of Executor's Fees and Expenses
- Outcome: The court granted the Plaintiff's application for fees, costs, and expenses to be paid out of the Estate, subject to the fees being reasonably incurred.
- Category: Substantive
- Sub-Issues:
- Reasonableness of fees
- Taxation of costs
- Authorization to Mortgage Estate Properties
- Outcome: The court granted the Plaintiff's application to take up further mortgages on the Peak 1 and 2 Properties to discharge the Estate’s outstanding liabilities.
- Category: Substantive
- Sub-Issues:
- Application of assets
- Interpretation of will clauses
- Related Cases:
- [2013] EWHC 2724 (Ch)
- [2007] 1 SLR(R) 453
- Construction of Will
- Outcome: The court interpreted the will, clarifying that 'all expenses pertaining to the first apartment' did not include servicing mortgage loans taken out for administering the Estate.
- Category: Substantive
- Sub-Issues:
- Testamentary intention
- Interpretation of clauses
- Related Cases:
- [2007] 1 SLR(R) 453
8. Remedies Sought
- Discharge as executor
- Payment of fees, costs, and expenses
- Authorization to take up further mortgages
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Estate Administration
- Trusts
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Petterson v Ross and others | High Court of Justice of England and Wales, Chancery Division | Yes | [2013] EWHC 2724 (Ch) | England and Wales | Cited regarding the statutory order for the application of assets under the Administration of Estates Act and whether a fee agreement can derogate from this order. |
| Goh Nellie v Goh Lian Teck and others | High Court | Yes | [2007] 1 SLR(R) 453 | Singapore | Cited for the principles pertinent in the construction of a will, including testamentary intention and reading the will as a whole. |
| Ligar Fernandez v Eric Claude Cooke | N/A | Yes | [2002] MLJ 77 | N/A | Cited for the principle that the interests of the beneficiaries are the primary concern when deciding whether to discharge an executor. |
| Jigarlal Kantilal Doshi v Damayanti Kantilal Doshi | N/A | Yes | [2000] 3 SLR(R) 297 | Singapore | Cited for the principle that the interests of the beneficiaries are the primary concern when deciding whether to discharge an executor. |
| Gonder v Gonder Estate | Ontario Court of Appeal | Yes | [2010] ONCA 172 | Canada | Cited regarding the interests of the beneficiaries and the continued effective administration of the estate when deciding whether to discharge an executor. |
| In re Sanford; Sanford v Sanford | N/A | Yes | [1901] 1 Ch 939 | N/A | Cited for the presumption that effect should be given to every word in a will. |
| Re Bailey; Barrett v Hyder | N/A | Yes | [1951] Ch 407 | N/A | Cited for the principle that the court’s function is not to rewrite the will or to seek to “improve upon or perfect testamentary dispositions”. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Trustees Act (Cap 337, 2005 Rev Ed) | Singapore |
| Probate and Administration Act (Cap 251, 2000 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Estate
- Executor
- Mortgage
- Will
- Codicil
- Beneficiaries
- Testamentary expenses
- Peak 1 Property
- Peak 2 Property
15.2 Keywords
- Estate
- Executor
- Mortgage
- Will
- Singapore
- Trustee
- Probate
- Administration
16. Subjects
- Trusts
- Probate
- Estate Administration
17. Areas of Law
- Probate and Administration
- Trust Law