Cheng v Lam [No 7]

The plaintiff, Mary Yuen Shan Cheng, sought to vary certain orders made by the court in the ongoing partnership dispute between the plaintiff, the first defendant, Francis Hung Lam, and the second defendant, Andrea Man Yee Cheng. The application brought by the plaintiff sought to remove an incorrect claim of rent, recalculate certain items based on agreed contributions, and adjust the rent regarding a property at 78C Edgecumbe Street, Como. Additionally, the plaintiff argued that the court had made a finding of in specie distributions of certain partnership properties. Justice Tottle considered the application and the issues raised by the plaintiff. Regarding the allowance for rental income from 250C Ewen Street, the court found that no allowance should be made in favour of the defendants, as the plaintiff was not required to account for rental income from the property. The court held that the specific finding of the registrar should take precedence over the general finding, and the allowance for rental income should be removed from the defendants' account. Concerning the recalculation of items 471 and 474, the court dismissed the plaintiff's application, as the application could not be brought under the slip rule, the registrar's report had been adopted, and there needed to be finality in litigation. Regarding the rental income from 78C Edgecumbe Street, the court found that the plaintiff had not let the property out before September 2012 and had paid the local government rates and insurance premiums claimed. The net rental income for which the plaintiff should account was calculated to be $109,403. Lastly, the court held that there was no finding of in specie distributions made by the previous judge, and therefore, the properties could still be subject to orders for sale on the final winding up of the partnerships. The plaintiff's application was partially successful in the issue concerning the allowance for rental income for 250C Ewen Street, but the court did not vary the May 2020 orders. The court will hear from the parties regarding the terms of the orders to be made and costs.