Itamae Sushi founder gave partners raw deal by going solo

A celebrity sushi chain founder has been ordered to pay damages to his former business partners after he set up a competing chain.

Madam Justice Mimmie Chan Mei-lan said Smart Wave, a corporate vehicle set up to manage and operate the first Itamae Sushi restaurant in Tsim Sha Tsui, was entitled to damages because founder Ricky Cheng Wai-tao breached his fiduciary duties as director in operating another chain, named Itacho.

Smart Wave was owned by sole director Cheng and his partners, including Daisy Poon and her brother Jason Poon Ka-man. The Poons and Cheng also operated the Hong Kong-listed Ajisen Ramen Group together.

The Tsim Sha Tsui restaurant closed in 2010.

"As a director of Smart Wave, it is undisputable that Ricky was under a fiduciary duty to act in the best interests of Smart Wave," the judge said.

"It is against the interests of Smart Wave for its director, Ricky, to operate and consent to the operation of a competing sushi restaurant, under the name 'Itacho' which I consider to be confusingly similar to the name 'Itamae'."