Yu Chun Kit v. Wong Wing Yau Formerly t/a Viewbond Cargo Service Co and Another
Read the full judgment text of DCPI 135/2017 on BabelCite. This District Court judgment was delivered on 22 June 2021.
1. This is an assessment of damages in respect of a traffic accident which occurred to the plaintiff on 23 January 2014 during the course of his employment with the 1 st defendant. On 21 September 2018, interlocutory judgment on liability was entered against the 1 st defendant in default of notice of intention to defend, leaving damages to be assessed at this trial.
Cited by 7 cases · Cites 15 cases
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[English translation – 英譯本] DCPI 135/2017 [2021] HKDC 729 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION PERSONAL INJURIES ACTION NO 135 OF 2017 _____________________
_____________________ Before: Deputy District Judge Kay Seto in Court Dates of Hearing: 28, 29 April and 11 June 2021 Date of Judgment: 22 June 2021 ____________________ J U D G M E N T ____________________ A. Introduction 1.This is an assessment of damages in respect of a traffic accident which occurred to the plaintiff on 23 January 2014 during the course of his employment with the 1st defendant. On 21 September 2018, interlocutory judgment on liability was entered against the 1st defendant in default of notice of intention to defend, leaving damages to be assessed at this trial. 2.At the time of the accident, the plaintiff, then aged 19, was a casual delivery worker and the front seat passenger of a medium goods vehicle driven by the 1st defendant. When the vehicle was travelling along Tolo Highway near Chainage 10.5(1A), Ma Liu Shui Bridge, Tai Po, New Territories, it collided with a container truck at the front, as a result of which the plaintiff suffered multiple injuries. 3.By the order of Master Peony Wong dated 23 December 2019, the Employees Compensation Assistance Fund Board (“Board”) was joined in these proceedings as the 2nd defendant to contest the issue of quantum only. 4.The trial was originally set down for 2 days. On the first day of the trial (28 April 2021), the plaintiff was absent and incommunicado. Upon hearing from Mr Yim, counsel for the plaintiff, I acceded to his application for an adjournment of the trial until the following day on the ground that the plaintiff would be the only witness testifying at the trial. The plaintiff appeared on the second day of the trial (29 April 2021) and explained through counsel that he had been ill and thus could neither attend the trial nor receive the phone calls made by his solicitors on the previous day. The costs thrown away by the adjournment would be addressed below. 5.At the beginning of the trial, the plaintiff and the Board confirmed that they had reached an agreement on quantum. On such basis, on the second day of the trial, I excused the attendance of the Board for the remainder of the trial. 6.During the trial, a preliminary issue arose as to the locus standi of the 1st defendant[1] to appear at the trial, leading to extensive arguments from the parties which are to be addressed in the following section. B. Locus standi of the 1st defendant 7.After the accident, on 16 September 2014, the 1st defendant was adjudged bankrupt upon a bankruptcy petition presented by himself in HCB 5794/2014. 8.The plaintiff commenced these proceedings on 20 January 2017. Thereafter, upon the consent of the plaintiff and the joint and several trustees in bankruptcy of the 1st defendant’s estate (“Trustees”), Master M Wong made an order in HCB 5797/2014 granting leave to the plaintiff to carry on these proceedings against the 1st defendant.[2] The Trustees have indicated that they would not contest these proceedings on behalf of the 1st defendant. 9.On 16 September 2018, the 1st defendant was discharged from bankruptcy under section 30A(1) and (2)(a) of the Bankruptcy Ordinance (Cap 6) (“BO”). 10.Generally speaking, a bankrupt has no locus standi to appear in proceedings involving claims for debt or damages in which he is a defendant, by reason that the only assets out of which the claim can be satisfied will have vested in his trustee in bankruptcy. He is protected by his bankruptcy from the claim which lies only against his estate, and has therefore no recognised interest in defending it: see Heath v Tang [1993] 1 WLR 1421, 1424E-F, per Hoffmann LJ (as he then was); Schaw Miller and Bailey: Personal Insolvency: Law and Practice (5th ed, 2017), §19.42. 11.It is noteworthy that the learned authors of Schaw Miller and Bailey also stated in the same passage (at §19.42) that “[o]ne would also assume that [the bankrupt] would retain standing to appeal in cases involving debts that are not discharged by bankruptcy”. 12.Section 32 of the BO provides for the effect of an order of discharge and bankruptcy debts[3] which are not thereby discharged as follows:
13.For the present purposes, the relevant provision is section 32(6) of the BO, providing that, except to such extent and on such conditions as the court may direct, an order of discharge does not release the bankrupt from any bankruptcy debt which consists in a liability to pay damages for, among other things, negligence in respect of personal injuries to any person. This provision is modelled on section 281(5)(a) of the (UK) Bankruptcy Act 1986. Despite thorough research by this court and counsel, no relevant authorities have been found that shed light on the effect of section 32(6) of the BO or its English equivalent on the locus standi of a discharged bankrupt. 14.Nevertheless, it appears to me that, in this respect, the court may consider the relevant authorities in relation to other debts which are not discharged by bankruptcy under section 32 of the BO. In particular, section 32(4) of the BO provides that any debt incurred by means of fraud or fraudulent breach of trust shall not be released by an order of discharge. This provision is modelled on section 28(1)(b) of the (UK) Bankruptcy Act 1914, which in turn was based on section 49 of the (UK) Bankruptcy Act 1869.[4] In this context, Mellish LJ held in Cobham v Dalton (1874-75) LR 10 Ch App 655 (at 657-658) that:
James LJ used language to the same effect. He said (at 656):
15.In Ex parte Hemming, In re Chatterton (1879) 13 Ch D 163 (at 166-167), the English Court of Appeal applied the above principles laid down in Cobham v Dalton. Thesiger LJ, delivering the judgment of the Court, explained (at 167-169) that the property acquired by a bankrupt after his discharge does not vest in his trustee, and that a creditor whose debt has been incurred by means of fraud is entitled to sue the discharged bankrupt (as opposed to his trustee) for the amount of the debt. Should the creditor have received any dividend in the bankruptcy, the discharged bankrupt would only remain liable for the unpaid balance of the debt; if no dividends have been paid, the discharged bankrupt, if he pays the creditor in full, is entitled to stand in the latter’s place in respect of any dividend which may be declared on the debt in the bankruptcy. 16.In Emma Silver Mining Company v Grant (1880) 17 Ch D 122, Jessel MR (at 130-131) similarly ordered a discharged bankrupt to personally pay the debt incurred by means of fraud to the creditor, or so much thereof as should not be received by the creditor in the bankruptcy. 17.In the premises, a discharged bankrupt shall remain liable to pay any debts incurred by fraud out of his property acquired after discharge. Such liability falls under the same category of excepted debts in section 32 of the BO as those incurred in respect of damages for personal injuries. Accordingly, in my view, the authorities cited at §§14-16 above are applicable by analogy to a discharged bankrupt’s liability to pay damages for personal injuries under section 32(6). 18.Applying these legal principles to the present case, since the 1st defendant’s liability herein has not been released by his discharge from bankruptcy, he remains personally liable to pay any damages as assessed at this trial out of his property acquired after discharge. In the premises, I am of the view that the 1st defendant has sufficient interest, and thus locus standi, to appear at this trial and make submissions on the quantum of the plaintiff’s claim. 19.In my view, the authorities relied on by Mr Yim do not seem to assist the plaintiff’s case in challenging the 1st defendant’s locus standi in these proceedings:
20.For the above reasons, I allowed the 1st defendant to appear, make submissions and cross-examine the plaintiff at this trial. C. The plaintiff’s injuries and medical treatment 21.As a result of the accident, the plaintiff was trapped inside the vehicle driven by the 1st defendant and had to be extricated by firemen. Thereafter, he was immediately sent to the Department of Accident and Emergency of Prince of Wales Hospital (“PWH”). Physical examination showed that he sustained abrasion wounds over both knees, and his right lower limb was foreshortened and internally rotated. He was diagnosed to be suffering from right posterior hip dislocation. Closed reduction was done under deep conscious sedation. He was then transferred to the Department of Orthopaedics and Traumatology (“O&T”) of PWH for further management. 22.At O&T of PWH, the plaintiff received physical and X-ray examinations, showing that he suffered from (i) right hip dislocation with no neurological deficit; (ii) right knee contusion with soft tissue injury; (iii) left knee abrasion; and (iv) 5th metatarsal phalangeal joint contusion. Computed tomography scan done on the same day (viz. 23 January 2014) further revealed that the plaintiff sustained a fracture of the anterior right femoral head, and a fracture of the posterior lip of the right acetabulum. 23.On 18 February 2014, the plaintiff received a magnetic resonance imaging scan of his right knee, showing (i) a tear of the body and posterior horn of the medial meniscus; (ii) a partial tear of the posterior cruciate ligament; (iii) bursitis (viz. inflammation of a bursa sac); and (iv) bone bruise in the lateral tibial plateau. 24.The plaintiff was treated conservatively with skeletal traction, hip spica, right knee brace and a course of physiotherapy. He was discharged from PWH on 28 February 2014 after 36 days of hospitalisation. 25.Thereafter, the plaintiff continued to attend follow-up consultations at the O&T outpatient clinic of PWH until 27 February 2015. He also received a course of physiotherapy treatment as an out-patient at the Physiotherapy Department of PWH between 4 March 2014 and 21 May 2014. 26.During the period from 30 April 2014 to 31 December 2015, the plaintiff received 48 sessions of private physiotherapy treatment at Hong Kong Spinal and Sports Therapy Centre. 27.Between March and May 2015, the plaintiff consulted Dr Lau Hoi Kuen, a private orthopaedic specialist, and Dr Cheng Hing Fai, a private specialist in general surgery, for his hip injury. 28.The plaintiff was granted intermittent sick leave totalling 491 days between 23 January 2014 and 16 June 2015. D. Expert orthopaedic evidence 29.The plaintiff instructed Dr Tio Man Kwun Peter, an orthopaedic specialist, who examined the plaintiff on 25 November 2016 and prepared orthopaedic expert reports dated 9 December 2016 and 5 January 2019. Both expert reports of Dr Tio have been admitted as evidence without calling the maker. 30.In Dr Tio’s expert reports, he made the following relevant findings and opinion:
E. Assessment of quantum E1. The agreed heads of claim between the plaintiff and the Board 31.As stated above, the plaintiff and the Board have reached an agreement on quantum. Their agreement may be summarised as follows:
32.Generally, the court may give effect to the agreed figures if they are within the range of damages payable by the 1st defendant and are substantiated by evidence before the court: see e.g. Lai Yuk Tsan v Poly Chance (Asia) Limited and Anor, DCEC 2601/2014 (31 October 2017), §15; Lam Hoi San, the person appointed to represent the estate of Lam Yiu Wah, deceased v Win Lee Auto Engineering Company Limited and Anor [2021] HKDC 502, §16. 33.In the present case, while I am satisfied that the agreed figures on (a) pre-trial loss of earnings and MPF, (b) loss of earning capacity and (c) special damages are within the range of damages payable by the 1st defendant and also substantiated by evidence, I am not satisfied that the agreed amount of PSLA at $460,000 is substantiated on the medical evidence before me. 34.In relation to the claim for PSLA, Mr Yim submits that the plaintiff’s injuries fall at the bottom end of the Serious Injury category as defined in Lee Ting Lam v Leung Kam Ming, an infant by his next friend Leung Shu-wing [1980] HKLR 657. But it seems to me that the quantum agreed at $460,000 shows that the plaintiff’s injuries are much less serious than those defined as falling within the Serious Injury category. In David John Slater v Commissioner of Police, HCPI 646/2012 (7 July 2017), Bharwaney J held (at §22) that the starting point of PSLA awards for the Serious Injury category was $530,000 as of July 2017. Applying the formula as adopted by his Lordship in David John Slater (see §22 and footnote 1 thereof), the present starting point of PSLA awards for the Serious Injury category should be $569,000,[5] which far exceeds the agreed figure of $460,000 herein. 35.Mr Yim has cited 7 cases in support of the plaintiff’s claim for PSLA at $460,000. In my view, all of those cases involved injuries and disabilities which are more serious than those of the plaintiff in the present case:
36.In the present case, the plaintiff’s injuries were limited to his right hip and right knee with no neurological involvement. He was treated conservatively without any need to undergo surgery. He has undergone a fair recovery and, according to the expert opinion of Dr Tio, should be able to return to gainful employment. He did not develop any psychiatric impairment as a result of the accident. In my judgment, his injuries are clearly less serious than those in the cases referred to by counsel, and even taking into account the possibility that he may develop symptomatic degeneration in the right hip and right knee in the future, a sum of $420,000 would be reasonable for his claim under this head. 37.On the other hand, I am prepared to accept the agreement reached between the plaintiff and the Board in respect of the other heads of claim, with reasons as follows. 38.First, the plaintiff’s claim for pre-trial loss of earnings and MPF is calculated on the basis that the plaintiff earned a monthly income of $5,850 ($450 daily wage x 13 days)[6]at the time of the accident, and that he was unable to work during the entire sick leave period from 23 January 2014 to 16 June 2015. Loss of earnings for an additional 3-month period upon the expiration of sick leave is also provided for him to secure alternative employment. Thus, the plaintiff’s total loss under this head should be:
39.Secondly, the plaintiff’s claim for loss of earning capacity is based on 6 months’ loss of his pre-accident earnings, viz. $5,850 x 6 months, totalling $35,100, which I consider to be a reasonable sum under this head in the light of his residual disabilities in the right hip and right knee. 40.Thirdly, the plaintiff’s claim for special damages at $60,000 ($55,000 of which is medical expenses and $5,000 is travelling expenses) is supported by medical receipts and attendance records, which I find to be reasonable and would allow the same in full. E2. Future loss of earnings and MPF 41.In addition to those heads of claim as agreed with the Board, the plaintiff also asks the court to allow his claim for future loss of earnings and MPF. His claim under this head has evolved as follows:
42.The plaintiff testified at the trial. He explained that, after the accident, he has no longer been able to work as a delivery worker because his right hip would be painful when he walks or stands for a long time. He also has intermittent pain in his right knee and low back. He said he had tried to seek alternative employment as a salesperson but was unsuccessful thus far because the prospective employers found that it would be inconvenient if he were to be employed. He said he has a low education level and therefore is not qualified for office work. He has been relying on his parents for living expenses since the accident. 43.On the whole of the evidence, I am not satisfied that the plaintiff would suffer any future loss of earnings and MPF for the following reasons:
44.Furthermore, the plaintiff has not proffered any explanation as to why, on the one hand, he accepts that his loss of earnings during the pre-trial period was limited to those between January 2014 and September 2015 (see §38 above), and on the other hand, he would somehow suffer future loss of earnings with a multiplier of 6.12 years from the date of this judgment in respect of the same injuries. In my view, the plaintiff’s case on the alleged future loss of earnings is inconsistent and incredible as a whole. 45.For the above reasons, I am unable to accept the plaintiff’s evidence that he would suffer any loss of earnings and MPF in the post-trial period because of his residual disabilities in the right hip and right knee. Clearly, there are jobs available in the labour market which are suitable for his education level and physical capabilities. His failure to resume gainful employment after the sick leave period expired in June 2015 is entirely one of his own making and is not attributable to the accident. In my view, the plaintiff’s claim under this head is unsustainable on the objective evidence available and must be rejected. E3. Summary on quantum 46.In my judgment, the plaintiff is entitled to damages in the sum of $404,691, with details as follows:
F. Conclusion 47.In view of my decision above, there shall be judgment against the 1st defendant in the sum of $404,691. The 1st defendant shall pay interest on (a) the award for PSLA at 2% per annum from the date of service of the writ to the date of judgment, and (b) pre-trial loss of earnings and MPF and special damages at half of the judgment rate from 23 January 2014 to the date of judgment, thereafter at the judgment rate until full payment. 48.On the issue of costs, generally the court may exercise its discretion to order costs against the 1st defendant where a settlement has been reached between the plaintiff and the Board: see e.g. Lai Yuk Tsan, supra, §§26-27; Lam Hoi San, supra, §22. However, I am of the view that the 1st defendant should not be held liable for the entire costs of these proceedings in the light of the following matters. 49.First, as accepted by Mr Yim, the plaintiff should bear the costs thrown away by his absence at the trial on 28 April 2021, resulting in an adjournment of the trial. Having considered the statement of costs of the Board and the list of objections of the plaintiff, I summarily assess the Board’s costs thrown away by the adjournment at $37,000. I further summarily assess the 1st defendant’s costs thrown away by the adjournment at $1,000. 50.Secondly, I consider that the plaintiff has acted unreasonably at the trial. His legal representatives sought to challenge the locus standi of the 1st defendant without any authorities in support at the first instance, thus prolonging the length of the trial. The plaintiff also saw fit to pursue a claim for loss of future earnings and MPF which is clearly unsubstantiated by the undisputed medical evidence as well as his own testimony. As a result of these unsubstantiated claims by the plaintiff, the trial was substantially lengthened. In my view, the 1st defendant should not be held liable for the costs occasioned by the plaintiff’s unreasonable conduct of the trial. 51.In the premises, I make an order nisi that:
The costs order nisi shall become absolute upon the expiry of 14 days after the date of this judgment if there is no application to vary the same within the 14-day period.
Mr Foster Yim, instructed by Tung, Ng, Tse & Lam, for the plaintiff The 1st defendant, unrepresented, appeared in person Mr Roger Phang, instructed by P C Woo & Co., for the 2nd defendant, excused from attendance on 11 June 2021 [1] The 1st defendant had been absent in these proceedings prior to the trial. He only appeared for the first time on the first day of the trial. [2] The order provided that (a) no judgment or order obtained by the plaintiff shall be enforced against the 1st defendant without the leave of the court; and (b) the plaintiff shall not apply for any order for costs personally against the Trustees in these proceedings. [3] “Bankruptcy debt” is defined in section 2 of the BO to mean (a) any debt or liability to which he is subject at the commencement of the bankruptcy; and (b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy. [4] See also the equivalent provision in section 281(3) of the (UK) Insolvency Act 1986, providing that “an order of discharge shall not release a bankrupt from any debt or liability incurred by means of any fraud or breach of trust”. [5] I take judicial notice that, according to the Composite Consumer Price Index, the year-on-year inflationary increase in June 2018, June 2019, June 2020 and April 2021 (the June 2021 figure is not yet available) has been +2.4%, +3.3%, +0.7% and +0.8% respectively. Applying the percentage increases to the starting point of PSLA awards for the Serious Injury category, the current figure should be $569,000 ($530,000 x 102.4% x 103.3% x 100.7% x 100.8%, rounded up). [6] This figure was found to be the plaintiff’s monthly income in §25 of HH Judge KW Wong’s Judgment dated 5 June 2017 in DCEC 1787/2015. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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