Read the full judgment text of HCCT 72/2018 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 3 June 2021 before Hon Mimmie Chan J.
Construction contract dispute — Interior fitting contracts between Converge Design and Mount Kelly International for renovation of educational premises — Plaintiff sought contract payment of $1,813,689.80; Defendant counterclaimed for defects’ rectification costs, rental losses, and loss of business — Defendant alleged defects causing water seepage and cracks under Contract A, and safety defects under Contract B for premises used by toddlers — Defendant claimed Plaintiff failed to complete works properly, breaching implied terms and an alleged subsequent safety certificate agreement — Court found no contractual obligation on water seepage treatment and no credible evidence of defects extending to root of Contract A — Expert evidence estimated cracks to affect less than 1% floor and costs to rectify insignificant — Minor defects under Contract B found, easily remediable, not amounting to breach going to root of contract — Alleged March 2018 variation for safety certificate not proved and lacked consideration — Defendant’s heavy rectification costs caused by its own amalgamation plans, not Plaintiff’s defective works — Large parts of Defendant’s claims unsupported, exaggerated, and abandoned before trial close — Judgment for Plaintiff’s full contract sum with interest, and nominal award of $16,800 to Defendant for rectification costs — Defendant ordered to pay costs on indemnity basis. Keywords: construction contract, interior fitting, water seepage, cracks, implied terms, safety defects, breach of contract, rectification costs, variation agreement, indemnity costs.
Legal issues: Contract A - Water Seepage Issue · Contract A - Cracks Issue · Contract B - Defects and Breach of Implied Terms · March 2018 Agreement for Safety Certificate · Damages for Rectification and Rental Loss
Outcome: Plaintiff's claim for $1,813,689.80 allowed; Defendant's Counterclaim only allowed for $16,800 rectification costs; Defendant ordered to pay Plaintiff's costs on indemnity basis.
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