Lam Ho Lun v. 吳耀文 and Others
Read the full judgment text of DCEC 535/2017 on BabelCite. This District Court judgment was delivered on 8 March 2021.
1. This is the trial of an application by the applicant pursuant to sections 9, 10 and 10A of the Employee’s Compensation Ordinance Cap 282 (the “ECO”) for compensation for the injury caused to him in an accident which took place on 12 March 2015 (the “Accident”).
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DCEC 535/2017 [2021] HKDC 258 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION EMPLOYEES’ COMPENSATION CASE NO 535 OF 2017 ---------------------
--------------------- Before: Deputy District Judge Connie Lee in Court Date of Hearing: 2, 3 & 5 February 2021 Date of Judgment: 8 March 2021 -------------------- JUDGMENT -------------------- A. Introduction 1.This is the trial of an application by the applicant pursuant to sections 9, 10 and 10A of the Employee’s Compensation Ordinance Cap 282 (the “ECO”) for compensation for the injury caused to him in an accident which took place on 12 March 2015 (the “Accident”). 2.The applicant was born on 21 October 1979. At the time of the Accident, he was 35 years old. 3.At the material time, the applicant was a casual scaffolding worker. On 12 March 2015, the applicant worked at an industrial building in Tuen Mun (the “1st Site”), a construction site in Sheung Shui (the “2nd Site”) as well as the construction site at Sheung Shui Slaughterhouse (the “Slaughterhouse”). After the Applicant finished the scaffolding work at the Slaughterhouse at about 4:15 pm, the 1st respondent drove the workers, including the applicant, to the warehouse situated near lamppost VD2125 at Kung Um Road, Yuen Long, New Territories, Hong Kong (the “Warehouse”) to tidy up the scaffolding tools and materials. At about 5:00 pm, after they finished their work at the Warehouse and were about to leave, and whilst the applicant was leaving and closing the metal gate of the Warehouse (the “Gate”), his right ankle was cut by a sharp metal sheet at the bottom of the Gate. 4.According to the Application, the applicant was an employee directly employed by the 1st respondent who was in turn a sub-contractor of the 2nd respondent. The 2nd respondent was in turn a sub-contractor of the 3rd and/or 4th respondent. It is further averred that the 3rd respondent was a sub-contractor of the 4th respondent who was the principal contractor at the material time. 5.The 2nd respondent filed an Answer and a witness statement of a 陳瀟帆 (ie the 2nd respondent’s director) to oppose the Application. By an order dated 23 October 2019, the 2nd respondent’s previous solicitors ceased to act. Since then, it has not participated in the proceedings. It did not appear at the trial. 6.I have been referred to the 3rd Affirmation of Kwok Ka Chun, an affirmation of service filed by the applicant’s solicitors. The relevant orders and papers have been served on the 2nd respondent, who had been reminded to attend trial. I am satisfied that the trial should proceed in its absence. 7.As per the Order of HH Judge Leung dated 3 June 2020, this trial was conducted in English with oral evidence being received in Punti. A court interpreter was assigned to assist the 1st respondent.[1] B. The Parties’ Respective Case 8.Insofar as liability is concerned, it is now common ground that the Accident occurred at the Warehouse, which should be that of the 2nd respondent. There is also no dispute that the Accident occurred in the course of the applicant’s employment. 9.As set out above, the applicant’s case is that the 1st respondent was his direct employer and the 1st respondent was in turn the 2nd respondent’s sub-contractor. The 2nd respondent was the sub-contractor of the 3rd or 4th respondents. It is said that the applicant reported his injury and sick leave to the 1st respondent. Upon the arrangement by the 1st respondent, the 3rd and/or 4th respondent(s) paid a sum of HK$50,000 being advance payment to the applicant on 27 May 2015. 10.The 1st respondent accepts that he was the sub-contractor of the 2nd respondent. He is however adamant that the applicant was not his employee. Rather, his case is that they were “partners” (合伙人或拍檔). 11.The 2nd respondent only admits in its Answer that it was the sub-contractor of the 3rd respondent. 12.The 3rd and 4th respondents’ case is that when the Accident occurred at the Warehouse, whoever the applicant’s employer might be, neither of them was the main contractor and hence they should not be liable for any compensation payable to the applicant. Their position is that:-
13.Insofar as quantum is concerned, the Employees’ Compensation (Ordinary Assessment) Board issued a certificate of assessment (“Form 7”)[3] on 21 July 2016 which assessed the applicant’s:-
14.None of the respondents seriously challenge the above assessment or the applicant’s case that his average monthly earning during the previous 12 months before the Accident was about HK$30,129. 15.However, should the 1st and/or 2nd respondent(s) be found liable for the applicant’s injury, the 3rd and 4th respondents’ case is that the HK$50,000 paid to the applicant on 27 May 2015 should not be deducted from the amount of compensation payable to the applicant (if any). C. The Key Issues For Determination 16.The key issues for determination are:-
D. The Evidence 17.There is little factual dispute which would materially affect the determination of the key issues in this trial. This is reflected in the brevity of the cross-examination of the witnesses. 18.The approach for the assessment of the credibility of witnesses is trite. The court should take into account the following:-
D1. The Applicant’s Evidence 19.In respect of the applicant’s case, only the applicant himself gave evidence. I am of the view that the applicant’s evidence is generally reliable and I accept the same. His answers regarding the essential part of his case were clear and consistent:-
D2. The 1st Respondent’s Evidence 20.The 1st respondent gave evidence to refute the allegation that he was the employer of the applicant. He however accepted that it was him who drove the 2nd respondent’s truck to pick up the applicant and other co-workers to work, and he would pay the applicant at the end of the month based on a daily rate of HK$1,500. 21.When asked why the Labour Department would suggest that the Form 2 dated 10 September 2015[7] and the notice of Change of Information dated 12 December 2015[8] were signed by him[9], he only repeatedly suggested that he did not fill in the information on the Form 2 indicating that he was the employer and the 4th respondent was the principal contractor. His evidence is that he forgot if he had signed on the same. I am of the view that the 1st respondent was evasive and this part of his evidence is simply not credible. 22.During cross-examination, the 1st respondent also suggested that after the scaffolding work was completed at the Slaughterhouse on 12 March 2015, he suddenly received a call from Ken Wong of 創發 (ie the 2nd respondent) asking him to work on the toe-board installation. He therefore drove to the Warehouse to get the rope and toe-board (ie 補料), planning to head back to the Slaughterhouse. Again, this part of his evidence is incredible and unreliable. The same is flatly contradicted by:-
D3. The Evidence of 陳瀟帆 23.The 2nd respondent only filed a witness statement of 陳瀟帆. As Mr Chan did not give evidence at the trial, I have disregarded the contents of his witness statement. D4. Evidence Given In Respect Of The 3rd and 4th Respondents’ Case 24.The 3rd and 4th respondents called the following witnesses to give evidence at trial:-
25.Although Mr Wong Fai Chi also prepared a witness statement, he did not attend the trial to give evidence. I have disregarded the contents of his witness statement. (i) Mr Li Kin Shing’s Evidence 26.Mr Li is a foreman of the 3rd respondent. He gave evidence that after the 1st respondent had signed off the Form 5 on 12 March 2015, he had never instructed anyone to add anything, including the toe-board to the scaffolding already built up. He also produced a screenshot of a Whatsapp message[13] from “Ken”, the foreman of the 2nd respondent who informed him on 12 March 2015 at around 10:28 pm that “有位同事系上水屠房屈親腳…請向新福港備案”. 27.Mr Li’s evidence is not particularly controversial. The 1st respondent did not challenge his evidence by way of cross-examination notwithstanding he was specifically invited to do so. I find Mr Li to be an honest witness and where the 1st respondent’s evidence is inconsistent with that of Mr Li, I will prefer and accept Mr Li’s evidence. (ii) Mr Wong Sai Man’s Evidence 28.Mr Wong is a senior manager of the 3rd respondent. He mainly gave evidence that he had via “Armful”, a related company also owned by the boss of the 3rd respondent ie Mr Au Chun Hung, chased the 2nd respondent for production of original medical records, sick leave certificates etc. for the purpose of claiming insurance, but to no avail. He also knew about the payment of HK$50,000 to the applicant on 27 May 2015 but had only learnt about that after the cheque was taken away by the applicant. Again, Mr Wong’s evidence is not controversial and the same is not seriously challenged by the applicant nor the 1st respondent. (iii) Mr Au Chun Ho’s Evidence 29.Mr Au is the senior site supervisor of the 3rd respondent and the younger brother of the “boss” ie Mr Au Chun Hung. He gave evidence in relation to the payment made to the applicant by way of his personal cheque on 27 May 2015 but dated 26 May 2015. Under cross-examination, he explained that he issued the personal cheque[14] when the applicant, the 1st respondent and Ken of the 2nd respondent came up to the 3rd respondent’s site office just to end the matter quickly since “當時氣氛唔好,想打發佢地走”. This is largely consistent with his witness statement and I find such explanation reasonable. In particular, it is not seriously disputed that his general impression as at 27 May 2015 was that the applicant was injured at the Slaughterhouse and HK$50,000 was not a big sum to him. (iv) Mr Leung Kin Man’s Evidence 30.Mr Leung is a Senior Registered Safety Officer of the 4th respondent. His evidence mainly relates to a telephone conversation with the applicant on 13 January 2016, who confirmed that he had reported that the injury took place at the Warehouse. Mr Leung also confirmed that he had not read the Form 2 prior to the telephone conversation and he only received the Accident Notification from the Labour Department on or about 5 January 2016[15]. Again, Mr Leung’s evidence has not been seriously challenged. E. Analysis of the Key Issues E1. Issue 1: Whether The 1st Respondent Was The Applicant’s Employer 31.Having examined all the features of the relationship as between the applicant and the 1st respondent against the background of the indicia set out in Poon Chau Nam v Yim Siu Cheung & Anor[16], I am satisfied that as a matter of overall impression, the applicant was at the material time the 1st respondent’s employee. 32.First, it was the 1st respondent who took up work or projects mainly from the 2nd respondent and he would call the applicant and other co-workers when there was work. 33.Second, it was the 1st respondent who called the applicant to work for the period from 9 March 2015 to 12 March 2015. The 1st respondent drove the 2nd respondent’s truck to pick up the applicant and two other co-workers to work on different sites, including the Slaughterhouse, before heading to the Warehouse on 12 March 2015. 34.Third, it was the 1st respondent who paid the applicant and the other co-workers at the end of the month based on a daily rate of HK$1,500. The 1st respondent accepted that he was the one who did the calculation and made payments to the applicant and the other co-workers. 35.Fourth, the applicant did not have to bear any financial risk or management responsibilities. 36.It is not disputed that the applicant did not have to provide any tools or materials and/or hire any other co-workers to undertake the work arranged by the 1st respondent. In fact, the 1st respondent accepted during cross-examination that he would not inform the applicant beforehand as to where they would be heading or what they would have to do. 37.Rather, the 1st respondent accepted that it was him who was responsible for liaising or contacting the 2nd respondent regarding the carrying out of work orders as well as following up on the applicant’s claim for compensation for his injury. He was also the one who instructed the applicant and the co-workers to work. As such, the applicant had to report the Accident to him as the applicant would not otherwise know how or who else to notify. The applicant only liaised with the 1st respondent regarding his claim for compensation and he handed his sick leave certificates to the 1st respondent. It was also the 1st respondent who asked the applicant to attend the site office of the 3rd respondent on 27 May 2015 to get the cheque of HK$50,000. 38.Fifth, according to the Form 2, the 1st respondent was stated as the employer. It was also confirmed by the Labour Department that the Form 2 together with the Notice of Change of Information were signed by the 1st respondent and the 1st respondent had no good explanation to refute the same. 39.There is no dispute that the Accident arose in the course of the applicant’s employment. Under section 5(4)(a) of the ECO, an accident arising in the course of an employee’s employment shall be deemed, in the absence of evidence to the contrary, also to have arisen out of that employment. Accordingly, the 1st respondent shall be liable to pay compensation under section 5 of the ECO. E2. Issue 2: Whether the 2nd Respondent Sub-Contracted The Work Carried Out At The Warehouse To The 1st Respondent 40.As the applicant did not plead an alternative case that the 2nd respondent was his direct employer and there was no application to amend the Application to do so, I do not need to consider this issue which was only raised in Mr Cheung’s closing submissions. 41.Against the evidence available, I am however satisfied that the work carried out at the Warehouse when the Accident occurred in the late afternoon on 12 March 2015 was for the 2nd respondent, and the same was sub-contracted to the 1st respondent. 42.First, the 2nd respondent cannot dispute that the 1st respondent was driving its truck bearing the name of “創發”, and the Warehouse belonged to the 2nd respondent. 43.Second, the following evidence remains unchallenged and I have accepted the same:-
44.According to section 24 of the ECO, the 2nd respondent as principal contractor shall be liable to pay compensation. E3. Issue 3: Whether The Work Carried Out At The Warehouse Was Part of The Work Undertaken By the 3rd and/or 4th Respondents and Subcontracted To The 2nd Respondent 45.Section 24 of the ECO provides that:-
46.In the circumstances, the 3rd and/or the 4th respondents would only be liable for the applicant’s injury if the same was sustained at the time when the applicant was executing work relating to the whole or any part of the work pursuant to the subcontract between the 2nd and 3rd and/or 4th respondents undertaken by the 3rd and/or 4th respondent. 47.Against the totality of the evidence in this case, I am not satisfied that the applicant’s closing of the gate at the Warehouse was related to the execution of the agreed sub-contract work between the 2nd and 3rd respondents and/or the 4th respondent. 48.First, it is not seriously disputed that the 2nd respondent was a sub-contractor of the 3rd respondent who was in turn a sub-contractor of the 4th respondent only in respect of the erection of a bamboo scaffolding at the Slaughterhouse. 49.Second, the 1st respondent confirmed that he signed on the Form 5 for the scaffolding. The same is a statutory form to be filled in after completion of the relevant work. Accordingly, the 1st respondent also accepted that, by signing the same, he had certified that the scaffolding had been completely built by around 4:15 pm on 12 March 2015. 50.Therefore, at that point of time, the sub-contract work as between the 2nd respondent and the 3rd and 4th respondents must have already been completed before the 1st respondent’s crew, including the applicant, left the Slaughterhouse. 51.Third, I do not accept the 1st respondent’s evidence or submissions that the scaffolding already built up at the Slaughterhouse required his continual service for toe-board installation as demanded by the 2nd respondent. The same is also flatly contradicted by:-
52.Fourth, for reasons already set out above, I do not accept the 1st respondent’s fresh allegation made during the course of cross-examination that the installation of toe-board was only suddenly requested by Ken Wong of the 2nd respondent by way of a phone call such that the 1st respondent had to go to the Warehouse to replenish materials including the toe-board. 53.Fifth, against the aforesaid evidence, the fact that the 4th respondent was stated as the as the principal contractor on the Form 2 and the Change of Information is neither here nor there. In particular, I have found the 1st respondent’s inability to confirm whether he signed on the same and his denial that he was the one who filled in such information to be incredible. 54.Sixth, where the pre-conditions of section 24 of the ECO are not satisfied, the applicant cannot rely on the payment of HK$50,000 per se as evidence to hold the 3rd and/or 4th respondents liable for the applicant’s injury as the principal contractor(s). 55.It is not seriously disputed that the general impression on the part of the 3rd and 4th respondents as at 27 May 2015 was that the applicant was injured at the Slaughterhouse. This is based on misinformation provided to the 3rd respondent by “Ken” of the 2nd respondent by a Whatsapp message[19]. Accordingly, the 按期款項收據[20]for the HK$50,000 payment also stated that the injury was sustained at the Slaughterhouse. 56.I also accepted Mr Au’s explanation that the payment he made by way of his personal cheque was to end the matter quickly. E4: Issue 4: Quantum (i) Form 7 57.As the applicant had withdrawn his appeal against the Form 7 assessment[21], the said assessment constitutes conclusive evidence by virtue of section 16H of the ECO. (ii) Section 9 Compensation 58.The applicant was 35 at the time of the Accident. None of the respondents seriously challenged the applicant’s evidence that his average monthly earnings during the 12 months before the Accident was HK$30,129[22]. 59.Since it exceeds the specific amount of compensation stated in the Sixth Schedule at the time of the Accident (ie HK$26,070), the statutory maximum should be adopted. 60.The applicant is entitled to compensation under section 9 in the amount of HK$50,054.40 ie HK$26,070 x 96 months x 2%. (iii) Section 10 Compensation 61.The applicant is content with the sick leave period of 7 months. As such, he is entitled to compensation under section 10 in the amount of HK$168,722.40 ie HK$30,129 x 7 months x 4/5. (iv) Section 10A Compensation 62.Based on the available records[23] and receipts[24], the applicant had incurred medical expenses in the amount of HK$2,080. He is entitled to such compensation. (v) Summary on Quantum 63.In the circumstances, the applicant is entitled to the compensation summarized as follows:-
64.Given my ruling that the 3rd and/or 4th respondents are not liable to the applicant under section 24 of the ECO and the payment of HK$50,000 was made by personal cheque of Mr Au Chun Ho, it is not necessary to deduct the HK$50,000 from the total amount of the compensation set out above. F. Conclusion 65.For the above reasons, I make the following orders:-
66.There is no reason why costs should not follow the event. I make a costs order nisi that:-
67.The costs order nisi shall become absolute in the absence of any application to vary the same within 14 days of the handing down of this Decision. 68.It remains for me to thank counsel for their assistance.
Mr Cheung Yiu Leung, instructed by CL & Co Solicitors, assigned by the Director of Legal Aid, for the applicant The 1st respondent was not represented and was acting in person The 2nd respondent acting in person, being absent Mr Victor Gidwani and Mr Joseph Ng, instructed by Winnie Leung & Co, for the 3rd and 4th respondents [1] The court can also arrange an interpreter to orally interpret the contents of this judgment to the 1st respondent and/or 2nd respondent if necessary. [2] [B/134] [3] [C/431] [4] [2009] 5 HKLRD 513 at §53. [5] [C/418-419] [6] [C/420-421] [7] [C/424-428] [8] [C/429-430] [9] [C/432&456] [10] [B/134] [11] [C/530] [12] [C/531] [13] [B/128] [14] [B/114] [15] [B/237] [16] (2007) 10 HKCFAR 156 at §§11 to 19. [17] [B/170] [18] [B/172] [19] [B/128] [20] [B/113] [21] [A/31] [22] Rounded off from HK$30,129.17 [B/95-96] [23] [C/303-304] [24] [C/305-332] [25] I have considered Mr Cheung’s brief submissions seeking a Bullock Order against the 1st and 2nd respondents should I dismiss the Application against the 3rd and 4th respondents. However, I am not prepared to grant the same at this stage without having considered full submissions including the precise grounds for imposing the Bullock Order; the financial circumstances of the 1st and 2nd respondents and why a Bullock Order should be preferred over a Sanderson Order where the applicant is legally aided. | ||||||||||||||||||||||||||||||||||||||||||||||||||
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