Read the full judgment text of HCCT 30/2020 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 6 January 2023 before Hon Anthony Chan J.
Construction dispute concerning the fitting out works of a residential development known as The Cavaridge. The Plaintiff developer sued the 1st Defendant nominated subcontractor and the 2nd Defendant director for breach of contract, seeking damages including additional costs due to termination of the subcontract. The court held there was an implied contract between the Main Contractor PY and the 1st Defendant despite no formal signed subcontract (NSCtt), rejecting the Defendants' argument of a contract directly with the Plaintiff or collateral contract for direct payment. The Warranty from the 1st Defendant was enforceable; the 2nd Defendant's Personal Guarantee was binding but limited to Clubhouse works, and claim failed for want of attributable damages. The 1st Defendant breached the NSCtt by failure to proceed diligently and defective works, validating termination. Damages were assessed based on expert evidence, covering costs of rectification and additional expenses incurred, with reasonable allowances for prolongation. Judgment was granted to the Plaintiff against the 1st Defendant for over HK$10.8 million plus interest; claims against the 2nd Defendant and the 1st Defendant’s counterclaim were dismissed. Costs were awarded to the Plaintiff against the 1st Defendant.
Legal issues: Existence and nature of contract between Plaintiff, PY and 1st Defendant · Whether collateral contract existed between Plaintiff and 1st Defendant about direct payment · Enforceability of the Warranty by the 1st Defendant · Enforceability of the Personal Guarantee by the 2nd Defendant · Breaches of contract by 1st Defendant and validity of termination · Quantum of damages
Outcome: Judgment for the Plaintiff against the 1st Defendant for HK$10,833,049.06 plus interest; Plaintiff's claim against 2nd Defendant dismissed; 1st Defendant’s Counterclaim dismissed.
Cites 3 cases