Tsoi Chun Yin v. 楊潮明 and Another
Read the full judgment text of DCEC 541/2021 on BabelCite. This District Court judgment was delivered on 6 December 2023.
1. This is the application by the Applicant under sections 9, 10 and 10A of the Employees’ Compensation Ordinance, Cap 282 (“ Ordinance ”) for compensation for the injury sustained by him in a traffic accident on 13 February 2020 (“ Accident ”).
Cited by 1 case · Cites 12 cases
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DCEC 541/2021 [2023] HKDC 1656 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION EMPLOYEES’ COMPENSATION CASE NO 541 OF 2021 -------------------------
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------------------------- JUDGMENT ------------------------- INTRODUCTION 1.This is the application by the Applicant under sections 9, 10 and 10A of the Employees’ Compensation Ordinance, Cap 282 (“Ordinance”) for compensation for the injury sustained by him in a traffic accident on 13 February 2020 (“Accident”). 2.The Applicant also appeals, under section 18 of the Ordinance, against the assessment of Employees’ Compensation (Ordinary Assessment) Board (“MAB”) in Form 7 dated 11 August 2022 (“Form 7”). Pursuant to the leave granted by the Court, the Applicant has filed an expert report dated 11 October 2022 from Dr Lau Sing Ki Kenric (“Dr Lau”), a specialist in orthopaedics & traumatology, and an expert report dated 24 October 2022 from Dr Tsang Kin Lun (“Dr Tsang”), a specialist in neurology. 3.The Respondents dispute both the liability and quantum. The Respondents deny that the Applicant was an employee at the time of the Accident. They also deny that the Accident was in the course of and arising out of the employment. There is no appeal against the Form 7 by the Respondents and they have not adduced any expert evidence. THE PARTIES’ CASES 4.It is the Applicant’s case that he was employed by the 1st and/or 2nd Respondent(s) as a renovation worker at the material time. On the date of the Accident, he was assigned to work in Sai Chuk Lam Monastery (“Monastery”) at Tsuen Wan. After finishing the work, his employer arranged one Li Yong Jing (“Li”) to drive a private car bearing registration mark WG5834 (“Car”) to pick him up at the Monastery and to bring him to work in another site in Tin Shui Wai in the afternoon. When the Car was travelling on Tuen Mun Road near lamppost W3529, it met the Accident and the Applicant sustained injuries. 5.In the Amended Answer, the Respondents aver that the Applicant was an “outworker” within the meaning of section 2(1)(c) of the Ordinance or, alternatively, an independent contractor. The Respondents further allege that, due to heavy rain in the morning on the date of the Accident, no work was arranged in the afternoon and the Applicant decided to have lunch at Lam Dei, Tuen Mun, with some friends including the 1st Respondent and one Mr Peng Qiudong (“Peng”). Peng therefore asked Li to use the Car, which was registered in Peng’s name, to pick up the Applicant at the Monastery and bring him to Lam Dei. It is the Respondents’ case that the journey from the Monastery to Lam Dei was for the Applicant’s “private agenda”. Therefore, the Accident was not arising out of or in the course of the Applicant’s employment even assuming that the Applicant was an employee. THE ISSUES 6.Based on the above, the issues that need to be decided are:-
EVIDENCE 7.The Applicant, the 1st Respondent and the 2nd Respondent give evidence at trial. The Respondents also call Li to give evidence. Their evidence is summarized as follows. The Applicant’s evidence 8.The Applicant was born in China in June 1956. He was 63 years old at the time of the Accident and is 67 at the trial. He came to Hong Kong in 2016. Prior to that, he had 10 years’ experience as a plasterer in China. 9.According to the Applicant, he was employed by Ming Kee Engineering Company[1] (“Ming Kee”) in July 2017 to work in an optical fibre project (“Optical Fibre Project”). It was his understanding that the 1st Respondent was the “boss” of Ming Kee and Peng was the foreman. Li was also an employee of Ming Kee. They always addressed the 1st Respondent as “the Boss” and the 1st Respondent had the authority to instruct Peng or other foremen to work. When working in Ming Kee, the Applicant always received his wages on a daily rate. He was paid once per month in cash by Peng. 10.In addition to the Optical Fibre Project, the Applicant was also instructed to work in different projects of Ming Kee. Usually, Peng would inform him the night before where to work on the following day. 11.Upon Peng’s instruction, the Applicant started working in the Monastery (“Monastery Project”) in December 2017. Since then, he had been mainly assigned to work in the Monastery Project but he also helped in the Optical Fibre Project occasionally. 12.The Monastery is located in a remote area in Tsuen Wan and is not accessible by public transportation. Whenever the Applicant was instructed to work in the Monastery, Peng would use his private car to drop him there and would pick him up from the Monastery after work. There was only one occasion where Peng did not pick him up because he was not in Hong Kong. 13.On 7 February 2020, Peng brought him to work in a warehouse in Tin Shiu Wai (“Tin Shiu Wai Project”). He continued to work there in the days that followed. 14.On 12 February 2020, Peng instructed the Applicant to go to the Monastery on the following day to finish some outstanding works, ie patching up holes on a wall. 15.In the morning of 13 February 2020, upon Peng’s instructions, the Applicant met the 1st Respondent at Tai Wai Station. The 1st Respondent used his private car to bring the Applicant to the Monastery. Peng and some other workers were also on the 1st Respondent’s car. After dropping the Applicant, they left the Monastery and went to the site of the Tin Shui Wai Project. 16.Later, Li arrived at the Monastery about 10 am. With the help of Li, the Applicant finished the work at around 11 am. According to the Applicant, when he intended to change into clean clothes, Li told him that it was unnecessary because the Applicant still needed to work in the Tin Shiu Wai Project. 17.The Applicant says that Li did not mention about having lunch together at Lam Dei. He agrees that it would be lunchtime (which started at 12 noon) when they arrived Tin Shui Wai. The Applicant says that it was his habit to bring lunch to work. If other workers had gone out for lunch when he arrived Tin Shui Wai, he would have lunch by himself and begin working after lunchtime. 18.During hospitalization, the Applicant became aware that his injury was serious and it might take a long time to recover. The Applicant worried about the livelihood of his family. After discharge from hospital on 25 February 2020, the Applicant called the 1st Respondent and asked whether the 1st Respondent had reported the Accident to the Labour Department. The 1st Respondent requested the Applicant not to report the Accident to the Labour Department and promised to give the Applicant some money later. 19.In late March 2020, the 1st Respondent changed to say that the Accident was a traffic accident and it was not necessary to report it to the Labour Department. 20.On 18 April 2020, the 1st Respondent and Peng visited the Applicant. The 1st Respondent gave the Applicant $30,000 in cash and said it was a loan to the Applicant. 21.On 22 May 2020, the Applicant filed a Notification of Accident to the Labour Department (“Notification”). In the Notification, the Applicant named Ming Kee as his employer and gave an address in Ma On Shan (“Ma On Shan Address”) as Ming Kee’s address. He also named the 1st Respondent as the contact person. 22.A few days later, the Applicant received a call from Peng. According to the Applicant, Ming Kee had defaulted in paying his wages since October 2019. During the said telephone conversation, the Applicant and Peng confirmed that the outstanding wages owed by Ming Kee to the Applicant were 64 workdays (which was equivalent to $70,400 when applying the daily rate of $1,100). 23.Subsequently, Peng informed the Applicant that, according to the 1st Respondent’s instruction, the previous payment of $30,000 would be regarded as a partial payment of the outstanding wages and they would only pay the Applicant $40,400. 24.On 26 May 2020, the Applicant received a cheque of $40,400 dated 21 May 2020 (“Cheque”). The Cheque was issued by Ming Kee drawing on Ming Kee’s account with Bank of East Asia (“BEA Account”) and signed by the 1st Respondent. 25.The Applicant admits that he rarely saw the 2nd Respondent when he was working for Ming Kee and he does not know the relationship between the Respondents. The 1st Respondent’s evidence 26.It is the 1st Respondent’s evidence that he “borrowed” Ming Kee from the 2nd Respondent to take up the Optical Fibre Project in 2017. He agrees that Peng and the Applicant were employed by Ming Kee to work in the Optical Fibre Project. He also agrees that the workers employed by Ming Kee received wages on a daily rate and their wages were distributed through Peng. 27.The 1st Respondent says that the Optical Fibre Project was discontinued in 2018 because the company which hired Ming Kee to carry out the Project was unable to pay the fee and Ming Kee had to use its own money to pay all outstanding wages to its workers. After settling the outstanding wages, Ming Kee terminated the employment of all workers. Since then, Ming Kee has not employed any employee. 28.As for the Monastery Project, the 1st Respondent says that he learned in around 2018 that some renovation work needed to be carried out at the Monastery. At first, the 1st Respondent helped in the Monastery Project as a volunteer without any pay. Later, the work demand of the Monastery Project increased and the abbot of the Monastery (“Abbot”) asked the 1st Respondent to find other workers to help. The 1st Respondent introduced Peng to the Abbot and the Applicant was one of the workers recruited by Peng to work in the Monastery Project. 29.The 1st Respondent further says that the workers who worked in the Monastery Project were hired by the Abbot and work instructions were given by the Abbot to them directly. The workers received wages every day. The Abbot gave the wages to a representative, who then distributed them to the workers. At first, the 1st Respondent was the representative who collected the money from the Abbot and distributed to other workers through Peng. 30.According to the 1st Respondent, he did not receive any wages in the Monastery Project. However, he leased some machinery to the Monastery and got a rental fee. The cost of materials required for the Monastery Project was usually paid directly by the Abbot to the suppliers. Sometimes, if the amount involved was small, the 1st Respondent and Peng would pay first and seek reimbursement from the Abbott later. 31.In end 2019 or early 2020, the 1st Respondent was busy with the Tin Shiu Wai Project and rarely went to the Monastery. By January 2020, the 1st Respondent completely “withdrew” from the Monastery Project, and the person in charge of collecting wages from the Abbot was changed to Peng. 32.The 1st Respondent agrees that Peng and the Applicant also worked in the Tin Shiu Wai Project. However, he maintains that he had no employment relationship with them and they were self-employed in both the Monastery Project and the Tin Shiu Wai Project. 33.On 13 February 2020, the Abbot informed Peng that there was work to be done at the Monastery and Peng asked the Applicant to go. The 1st Respondent denies that he was the person who dropped the Applicant at the Monastery. According to the 1st Respondent, it was Peng. 34.In the witness statement, the 1st Respondent says that it was the Applicant who invited him and Peng to have lunch at Lam Dei. Peng then asked his co-worker Li to drive the Car to the Monastery to pick up the Applicant whereas Peng and the 1st Respondent set off from the site of the Tin Shiu Wai Project. 35.Under cross-examination, the 1st Respondent changes to say that it was Peng and him who decided to go to Lam Dei for lunch, and Peng invited Li and the Applicant. He admits that the mobile signal at the Monastery was weak and he did not know whether the Applicant received Peng’s call or not. However, he says that Li would inform the Applicant of the lunch gathering in any event when he arrived at the Monastery. 36.The 1st Respondent admits that he contributed part of the purchase price of the Car even though the Car was registered in Peng’s name. 37.The 1st Respondent accepts that the Form 2 submitted to the Labour Department on 8 October 2020 (“Form 2”) was signed by him and the company chop of Ming Kee was affixed by him. However, he says that he was not aware of the content of the Form 2. According to the 1st Respondent, someone prepared the Form 2 and gave it to him. He did not read the document very carefully. After signing and affixing Ming Kee’s chop, he returned the document to the same person but he cannot recall who that person was. 38.The 1st Respondent also accepts that the Reply submitted to the Labour Department on 8 October 2020 (“Reply”) was signed by him and the company chop of Ming Kee was affixed by him. 39.It was handwritten in the Reply that Ming Kee had withdrawn from the Monastery Project in January 2020. Since then, the Applicant and other workers had worked in the Monastery as self-employed[2]. It was also stated that Li left Ming Kee in September 2019 and was not an employee of Ming Kee at the time of the Accident[3]. 40.The 1st Respondent says that, Like the Form 2, the Reply was not prepared by him and he was not aware of the content when he signed it. He says that the content of the Reply is incorrect in that Ming Kee never participated in the Monastery Project and Li ceased to be an employee of Ming Kee when the Optical Fibre Project was discontinued. 41.As for the payment of $70,400 to the Applicant, the 1st Respondent says that it was calculated on the Applicant’s work records kept by Peng and it was the Applicant’s wages in the South Horizons project (“South Horizons Project”). The 1st Respondent denies that he was in default of paying the Applicant’s wages. 42.The 1st Respondent explains that the South Horizons Project was different from other projects in that the contract sum would only be due 6 months after the completion of the Project. All workers participating in the Project agreed to delay receiving their wages until the contract sum was received and to take the risk of not having their wages in full if the contract sum fell short. On the other hand, they would get extra money on top of the wages if the full contract sum was received. 43.According to the 1st Respondent, after the Accident, the Applicant said he was in need of money. Even though the 1st Respondent had not received the contract sum of the South Horizons Project at that time[4], the 1st Respondent agreed to pay the Applicant’s wages first. Since he did not have sufficient money, he needed to borrow $40,400 from Ming Kee and that was the reason why the second payment of $40,400 was paid by the Cheque. The 2nd Respondent’s evidence 44.The 2nd Respondent admits that the 1st Respondent had the full authority to represent Ming Kee from 2017 to 2020 such as signing documents on behalf of Ming Kee, using Ming Kee’s company chop, operating the BEA Account, employing workers on behalf of Ming Kee, giving instructions to workers and paying their wages, etc. 45.After the end of the Optical Fibre Project in 2018, Ming Kee became dormant but the 2nd Respondent renewed its business registration every year hoping that Ming Kee might get new business. The BEA Account also continued to be operative with money coming in and out. He agrees that the BEA Account contained both his money and the 1st Respondent’s money. 46.At the request of the Abbot, he worked in the Monastery on a few occasions in his personal capacity. The Abbot gave work instructions to him and paid his wages directly. 47.The 2nd Respondent confirms that the $40,400 paid from the BEA Account was a loan borrowed by the 1st Respondent. The 1st Respondent did not tell him why he needed the loan and there was no discussion on when the 1st Respondent would repay the loan. 48.The 2nd Respondent says that he has no knowledge about the Form 2 and the Reply. Li Yong Jing’s evidence 49.Li says that he was involved in the Optical Fibre Project, the Tin Shui Wai Project and the Monastery project but he was not sure whether he was an employee of Ming Kee as he followed his father to work into these projects. 50.When he is shown the Reply during cross-examiantion, he accepts that he might have been an employee of Ming Kee. According to Li, he worked in the Optical Fibre Project until early 2019 and no one informed him that his employment with Ming Kee was terminated. 51.On the day of the Accident, Li was working with his father in Yeung Uk Tsuen in Yuen Long. They finished the work in the morning and were prepared to go home because there was no work in the afternoon due to the rain in the morning. When they were on their way home, Li received a call from Peng. Peng invited Li and his father to have lunch at Lam Dei and asked Li to pick up the Applicant at the Monastery. 52.Li arrived at the Monastery and helped the Applicant finish the work. The Accident occurred when they were on their way to Lam Dei. Li was not sure whether the Applicant would need to work in the afternoon. LEGAL PRINCIPLES 53.The legal principles for determining whether one was a contractor or an employee are well settled in Poon Chau Nam v. Yim Siu Cheung (2007) 10 HKCFAR 156. In essence, the Court should examine all the features of their relationship against the background of the indicia of employment with a view to deciding whether, as a matter of overall impression, the relationship was one of employment. This involves a nuanced and not a mechanical approach: painting a picture from the accumulation of detail. The indicia included the degree of control exercised by the “employer”; whether the person performing the services provided his own equipment; whether he hired his own helpers; what degree of financial risk he took; what degree of responsibility for investment and management he had; and whether and how far he had an opportunity of profiting from sound management in the performance of his task. 54.The legal principles for assessing the credibility of a witness are also well settled. In general, the court should take into account, inter alia, the inherent probabilities or improbabilities of one’s testimony, the contemporaneous documents or any evidence tending to support or contradict one account or the other, and the overall impression of the characters and motivations of the witnesses : see In re B (Children) [2009] 1 AC 11 at §31. 55.The following guidelines summarised by DHCJ Eugene Fung SC in Hui Cheung Fai v Daiwa Development Ltd, HCA 1734/2009, 8 April 2014 are instructive:-
CREBIDILITY OF WITNESSES 56.The Applicant impresses me as a credible witness. He gives evidence in a straightforward manner and is unshaken under cross-examination. 57.On the other hand, for the reasons that I will elaborate below, I do not find the 1st Respondent’s evidence to be reliable. His evidence is often contradicted by documentary evidence and defies common sense. 58.As far as the 2nd Respondent is concerned, his evidence is of limited probative value as it is his own case that he was not involved in the business of Ming Kee and had no knowledge about it. So is Li’s evidence as his involvement is limited to the Car journey on 13 February 2020. WHETHER THE APPLICANT WAS AN EMPLOYEE 59.It is the Respondents’ pleaded case that the Applicant was an “outworker” within the meaning of section 2(1)(c) of the Ordinance and therefore he was not an employee for the purpose of section 2. 60.The term “outworker” is defined in section 3 as “a person to whom articles or materials are given out to be made up, cleaned, washed, altered, ornamented, finished, or repaired, or adapted for sale in his own home or on other premises not under the control or management of the person who gave out the materials or articles”. 61.Mr Ng for the Respondents has not explained or elaborated how the Applicant’s patching holes on the wall in the Monastery on the date of the Accident fits the above definition. 62.It is the 1st Respondent’s evidence that the materials required for the Monastery Project were provided by the Abbot. It is also not disputed that the patching work was carried out in the Monastery, instead of the Applicant’s own home or other premises, and the Monastery was “under the control or management” of the Abbott. In my view, it is clear that the Applicant was not an “outworker”; see Li Chung I trading as Electric Trading Manufacturing Co v Li Man Yuen [1987] 3 HKC 120. 63.Mr Ng also raises the concept of “Free Grouping Arrangement”. According to Mr Ng, the relationship between the Applicant and the Respondent were in the form “free grouping” arrangements without any intention to create any employment relationship. Under this “Free Grouping Arrangement”, a leader leads a loose collective labour pool of “members” who are frequently either relatives, entourages from the same native village in China where they come from, or long-standing workmates. The labour pool is comprised of a group of assorted workmen to bid for and compete for smaller jobs. The leader is not their employer because the leader’s only role is to liaise as a single point of contact with the job owner and the workers as well as to collect wages on behalf of the workers. 64.It is trite that whether or not a person is employed under a contract of service is a mixed question of fact and law, and the relationship has to be determined by an investigation and evaluation of the factual circumstances in which the work is performed; see Lee Tin Sang v Chung Chi Keung [1990] 2 AC 374, 384. The fact that workers organize themselves in the manner described by Mr Ng does not necessarily mean that there is no employment relationship between the workers and the leader or the job owner. It all depends on the factual circumstances of the case. 65.Under cross-examination, the 1st Respondent says that the Applicant was one of the partners, rather than an employee, in the South Horizons Project. According to the 1st Respondent, the owner of the Project would pay the project fee six months after the completion and all workers participating in the Project (including the Applicant) agreed to delay the receipt of their wages until after the payment of the project fee by the owner. They also agreed to bear the risk of not receiving their wages in full in the event of short payment of the project fee. However, the workers would receive extra money on top of their wages if the project fee was paid in full. 66.Mr Ng has not made any submissions in his closing on the relevancy of this part of the 1st Respondent’s evidence. I note that Mr Ng has not even cross-examined the Applicant on the South Horizons Project. On the other hand, it is the 1st Respondent’s evidence that workers in the Monastery Project received wages on a daily rate only without any extra profit. Therefore, the Applicant’s role in the South Horizons Project has no bearing on the issue whether the Applicant was an employee in the Monastery. 67.On the other hand, it seems to me that there is no dispute that when the Applicant was working in the Monastery Project on 13 February 2020:-
68.Having considered the above features, I have no hesitation to reject the Respondents’ case that the Applicant was self-employed or an independent contractor in the Monastery Project. I find that the Applicant was an employee for the purpose of the Ordinance when he worked in the Monastery on 13 February 2020. WHO WAS THE APPLICANT’S EMPLOYER 69.Mr Fong for the Applicant submits in his closing that all the evidence points to the legal conclusion that the 1st Respondent and the 2nd Respondent were operating in partnership and therefore both of them were the Applicant’s employer. 70.According to Mr Fong, the features that supports his conclusion include (a) both of them have free access to the BEA Account; (b) the 2nd Respondent had total trust in the 1st Respondent; (c) the 1st Respondent soliciting projects (at least for the Optical Fibre Projects) which were carried out in the name of Ming Kee, evincing a common goal of business profit; (d) the 2nd Respondent kept Ming Kee alive up to the date of the Accident and allowed the 1st Respondent to represent Ming Kee; (e) both the 1st Respondent and the 2nd Respondent were responsible for dealing with the management and administration of Ming Kee; (f) the 1st Respondent had actual and usual authority to look for business and new projects and make representation and agreements on behalf of Ming Kee; (g) the 1st Respondent made declaration to the Labour Department on behalf of Ming Kee. 71.With respect, I do not agree with Mr Fong. One of essential features of a partnership is that there must be a contract between the partners to engage in a business with a view to profit; see Yeung Wai Lun v Sin Suet Ping, HCA 1960/1993, 26 February 1996. 72.In the present case, there is no evidence to show that there was a contract between the 1st Respondent and the 2nd Respondent to share the profit of Ming Kee. On the contrary, both Respondents testify that Ming Kee was “lent” by the 2nd Respondent to the 1st Respondent to conduct the latter’s business which the 2nd Respondent had no involvement. I note that Mr Fong has not cross-examined the 1st Respondent or the 2nd Respondent about the sharing of profit of Ming Kee. At most, the evidence only shows that the BEA Account contained money belonging to both the 1st Respondent and the 2nd Respondent but there is no evidence of them sharing the money therein as profit. In fact, it is the 2nd Respondent’s evidence that it was “messy” because their respective money was mixed in the Account. In my view, there is insufficient evidence to support Mr Fong’s contention that the 1st Respondent and the 2nd Respondent operated the business of Ming Kee in partnership. 73.Having considered all the evidence, I am of the view that the Applicant was employed by Ming Kee to work in the Monastery on the date of Accident. The reasons are as follows. 74.Firstly, I do not accept the 1st Respondent’s evidence that Ming Kee never participated in the Monastery Project. His evidence is directly contradicted by the Reply (signed by him) which states that Ming Kee has withdrawn from the Monastery Project since 1 February 2020. In my view, it is simply against logic and common sense for Ming Kee to withdraw from the Project which it had never participated. 75.Under cross-examination, the 1st Respondent alleges that he was not aware of the content of the Reply when he signed the document and he cannot recall who gave the document to him to sign. At the end of the 1st Respondent’s cross-examination, I ask him whether he can think of any person who might possibly have given the Reply to him to sign and the 1st Respondent maintains his answer that he cannot recall. I find his evidence unbelievable. 76.I note that the Reply contains the following printed words:-
77.It is admitted by the 1st Respondent that he had worked in the construction field for more than 20 years and he had handled work-related accidents before. In my view, even a quick glance of the Reply would reveal that it was a document to be submitted to the Labour Department for employment-related accident. Coupled with the Applicant’s unchallenged evidence that he had asked the 1st Respondent in late February 2020 about reporting the Accident to the Labour Department, I find it unbelievable that the 1st Respondent would have just signed the document and affixed Ming Kee’s company chop on it without looking at the content of the Reply. 78.Further, I note that the reference number on the Reply is the same as the one shown on the Notification (ie 17-2020-14061). The inference to be drawn is that, after the Labour Department had received the Notification from the Applicant, it prepared the blank Reply and sent it to Ming Kee for enquiry. 79.It is also reasonable to infer that the blank Reply must have been sent to the Ma On Shan Address in accordance with the information provided in the Form 2. Despite his allegation of having no knowledge about the Form 2 and the Reply, the 2nd Respondent confirms that the Ma On Shan Address was his residential address. The blank Reply must have been successfully delivered to the Ma On Shan Address for otherwise it would not have been submitted to the Labour Department later on 8 October 2020. It is also the 2nd Respondent’s evidence that the 1st Respondent had the full authority to represent Ming Kee even up to 2020. Therefore, when the 2nd Respondent received the letter from the Labour Department addressing to Ming Kee, one would expect him to pass it to the 1st Respondent for further handling. It is inherently improbable that the 2nd Respondent would by-pass the 1st Respondent and give the blank Reply to another person who then prepared the content and asked the 1st Respondent to sign. 80.Secondly, the 1st Respondent’s evidence that Ming Kee never participated in the Monastery Project is also inconsistent with his conduct of acting as the representative to collect wages on behalf of the worker whom, he claims, to be self-employed. 81.In Feng Jianzhu v Ho Sze Yee [2021] HKDC 1355[5], Deputy District Judge Charles Wong observed §68 that:-
82.In my view, the same observation applies to the 1st Respondent in the present case. I find it illogical for the 1st Respondent to take the trouble to collect the wages from the Abbot and passed it to Peng for distribution to workers when he had allegedly no interest in the Monastery Project, apart from leasing machinery to the Monastery. If the workers who worked in the Monastery were recruited by the Abbot directly as alleged, there was no reason why the wages could not have been paid directly by the Abbot to the workers, just like the case of the 2nd Respondent. The 1st Respondent’s conduct of collecting wages on behalf of the workers supports the conclusion that Ming Kee did participate in the Monastery Project. 83.Thirdly, I do not accept the 1st Respondent’s evidence that Ming Kee went dormant after the end of the Optical Fibre Project. It is not disputed that the business registration of Ming Kee was renewed every year after 2018. It is also not disputed that the 1st Respondent still kept the company chop of Ming Kee and remained one of the authorized signatories of the BEA Account at least up to 2022. 84.More importantly, it is the 2nd Respondent’s evidence that the BEA Account was still operative after 2018 with money coming in and out. The BEA Account is Ming Kee’s business account and one would expect that only money belonging to Ming Kee (such as cheques payable to Ming Kee) would be deposited into the Account. According to the 1st Respondent, the only project that Ming Kee had participated is the Optical Fibre Project but the company which hired Ming Kee to carry out the Project had failed to pay the fee. Therefore, Ming Kee should not have had any income after the end of the Project. In such circumstance, why there was still money going into the BEA Account and there was still at least $40,400 kept therein in May 2020? In my view, the inference to be drawn from the above evidence is that Ming Kee remained active in carrying out its business after 2018. 85.Fourthly, I do not accept the 1st Respondent’s evidence that the Applicant’s employment was terminated after the end of the Optical Fibre Project. There is no evidence from the 1st Respondent that he had informed the Applicant or any employee about the termination of the employment. In fact, Li, who admittedly also worked in the Optical Fibre Project, was not aware of the alleged termination of employment. 86.Moreover, it is the Applicant’s unchallenged evidence that he had mainly been assigned to work in the Monastery Project since December 2017 but also helped in the Optical Fibre Project. In other words, there was overlapping between the Optical Fibre Project and the Monastery Project. In my view, it was against commercial sense for Ming Kee to terminate the employment of all workers at the end of the Optical Fibre Project when the Monastery Project was still on-going. 87.By reason of the aforesaid, I find that the Applicant had been employed by Ming Kee since 2017 to work in various projects (including the Monastery Project and the Tin Shui Wan Project) and he remained an employee of Ming Kee when he worked in the Monastery on the date of the Accident. 88.It is not disputed that the 2nd Respondent was the sole proprietor of Ming Kee at all material times. It is also not disputed that the 1st Respondent had been authorized by the 2nd Respondent to use Ming Kee to take up the projects. Therefore, regardless of whether the 2nd Respondent was personally involved in the business of Ming Kee or not, the 2nd Respondent was liable for the Applicant’s employees’ compensation claim. WHETHER THE ACCIDENT OCCURRED ARISING OUT OF AND IN THE COURSE OF THE APPLICANT’S EMPLOYMENT 89.The main dispute between the parties is whether the purpose of the Car journey was to bring the Applicant to Lam Dei for lunch (as alleged by the 1st Respondent) or to bring him to the site of the Tin Shui Wai Project to work in the afternoon (as alleged by the Applicant). 90.I prefer the Applicant’s evidence. Firstly, the 1st Respondent’s evidence on who initiated the lunch gathering at Lam Dei is confusing. As indicated above, he says in his witness statement that it was the Applicant who invited him and Peng to have lunch at Lam Dei for lunch. Under cross-examination, the 1st Respondent changes to say that it was Peng and him who decided to go to Lam Dei for lunch, and invited the Applicant. The 1st Respondent has not provided an explanation for the stark differences between his witness statement and oral testimony. The lunch in Lam Dei plays an important part in the Respondents’ case and the 1st Respondent’s last-minute change of evidence has seriously undermined his credibility. 91.Secondly, there is no evidence to show that the Applicant and the 1st Respondent/Peng were personal friends and they had previously gathered for meals during leisure time. As confirmed by Li, it was the Applicant’s habit to bring lunch to work. In other words, the Applicant used to have lunch by himself, instead of joining the 1st Respondent and Peng, even when they were working in the same site. The 1st Respondent and Peng must have known the Applicant’s habit and it is unlikely, in my view, that they would invite the Applicant for lunch at Lam Dei. It is also unlikely that the Applicant would accept the invitation if he knew that there would be no work in the afternoon, bearing in mind that he was then living in Kwun Tong. 92.Thirdly, I find it unbelievable that Peng would ask Li to go the Monastery to pick up the Applicant for lunch without confirming with the Applicant whether he would accept the invitation or not bearing in mind that the Applicant had the habit of bringing his own lunch. It would be a waste of time and petrol if the Applicant turned down the invitation when Li arrived the Monastery. On the other side, Peng’s conduct makes perfect sense if the purpose of picking up the Applicant at the Monastery was to bring him to work in the Tin Shiu Wai Project in the afternoon because the Applicant could not refuse the instructions. 93.By reason of the aforesaid, I find that the purpose of the Car journey was to bring the Applicant to the Tin Shiu Wai Project for work. 94.For the sake of completeness, even assuming that I were wrong and the Car journey was for the Applicant’s “private agenda” as alleged by the Respondents, I am of the view that the Accident was one arising out of and in the course of the Applicant’s employment by reason of section 5(4)(d) of the Ordinance. 95.Section 5(4)(d) provides that for the purpose of the Ordinance:-
96.It is important to note that there is no requirement for the destination of the journey in section 5(4)(d). The presumption will arise as long as the journey is “to or from his place of work”. It does not matter whether the journey is for personal purpose (such as bringing the employee to lunch or home) or work purpose (such as bringing the employee to another place of work). This is contrasted with section 5(4)(f) where the presumption only arises if the employee “is travelling between his place of residence and his place of work”. 97.In the present case, there is no dispute that (a) the Applicant was travelling as a passenger at the time of the Accident; (b) the Car journey was from his place of work, ie the Monastery. 98.I have already found that Ming Kee was the Applicant’s employer when he worked in the Monastery on the date of the Accident and there is no dispute that the 1st Respondent still had the authority to represent Ming Kee at that time. For the purpose of section 5(4)(d), I further find that Peng was still employed by Ming Kee as a foreman on the date of the Accident and the Car was arranged pursuant to the arrangements between Peng (on behalf of Ming Kee) and Li which was not part of the public transport service. By reason of the aforesaid, I am satisfied that the presumption arises and the Accident is deemed to arise out of and in the course of employment. 99.It is Mr Ng’s submissions that section 5(4)(d) does not apply because the Respondents were not the Applicant’s employer. Given my finding that Ming Kee was the Applicant’s employer, it follows that Mr Ng’s submissions cannot get off the ground. 100.As the Respondents have not been able to adduce evidence to rebut the presumption, I find that, by operation of section 5(4)(d), the Accident was one arising out of and in the course of the Applicant’s employment with Ming Kee. INJURIES AND TREATMENTS 101.After the Accident, the Applicant was taken to the Accident & Emergency Department of Yan Chai Hospital. Examination showed 1.5 cm diameter swelling over the forehead. There was tenderness over the neck and decreased range of movement. X-ray of cervical spine showed mild spondylolisthesis at C6/7 and C7/T1. He was given a neck collar and referred to the Department of Orthopaedics & Traumatology. 102.Physical examination on admission to the Department of Orthopaedics & Traumatology showed neck tenderness with upper limbs weakness. There was evidence of cervical myelopathy. There was diffuse tenderness on both hands. CT cervical spine showed C6 fracture with posterior column involvement and intact anterior / middle column. He was treated conservatively with a neck collar. 103.The Applicant showed progressive improvement during subsequent follow-ups. At the consultation on 13 January 2021, his neck pain was improving. MRI showed mild stenosis at C-spine with cord signal change. He also had knee pain and x-ray showed mild degeneration. 104.From October 2021 to January 2022, the Applicant attended 25 sessions of work hardening programme in Prince of Wales Hospital and showed positive progress after training. In view of the residual limitation, he still had certain difficulty to return to his pre-accident job. As the Applicant planned to retire, service was stopped and he was discharged on 10 January 2022. 105.According to Form 7, the MAB diagnosed that the Applicant suffered from neck injury resulting in (a) residual neck pain and neck stiffness (1.5%); and (b) upper limb numbness and weakness (2.5%). MAB considered that the period of absence from duty necessary as a result of the injury should be from 13 February 2020 to 25 July 2022 and the loss of earning capacity permanently caused by the injury should be 4%. EXPERTS’ OPINIONS Dr Kenric Lau 106.Dr Lau examined the Applicant on 6 October 2022. The Applicant complained of (a) bilateral hand weakness; (b) bilateral leg weakness; (c) finger cramps; (d) reduced ability of carrying weight. The Applicant was able to manage the activities of daily living with adjustment and could use transportation. 107.It is Dr Lau’s diagnosis that the Applicant suffered (a) acute whiplash injury of the neck; (b) fracture lamina of C6 with central cord syndrome (spinal cord injury at C6 level); (c) pre-existing mild cervical spondylosis. 108.Dr Lau takes the view that the Accident is the sole cause of the acute injury of the neck, fracture of C6 and central cord syndrome which would lead to pain and stiffness of neck with numbness and weakness of the upper and lower limbs. The pre-existing cervical spondylosis is not related to the Accident but would be exacerbated during the acute sprain injury and led to the residual pain. 109.Dr Lau considers that sick leave granted up to 28 July 2022 is adequate and reasonable. 110.Dr Lau opines that due to the weakness of limbs and poor endurance, it would be unsafe for the Applicant to resume his pre-accident duty. Dr Lau recommends 6% Whole Person Impairment be given to the Applicant as related to the Accident. Considering the Applicant’s job demand, status before injury, severity of injury and the present status, Dr Lau recommends “1 to 6% loss of earning capacity in view of his orthopaedic injury permanently related to the accident”. Dr Tsang Kin Lun 111.Dr Tsang examined the Applicant on 10 October 2022. The Applicant complained of (a) persistent tingling (paresthesia) of both thumbs and both index fingers with moderate severity; (b) weakness and clumsiness of both hands; (c) walking endurance being limited to 20 minutes for level ground due to leg weakness; (d) low mood and loss of interest. The Applicant said the limb weakness and tingling had limited his activities of daily living. He could not carry heavy objects or walk for long. 112.It is Dr Tsang’s diagnosis that the Applicant suffered head and neck injury in the Accident. The Applicant has no residual symptom referrable to the brain which means that the initial concussion was mild and resolved. For the neck injury, the Applicant suffered fracture of single segment at C6. The current symptoms are from cervical myelo-radiculopathy. He has been suffering from persistent weakness of hand muscles with sensory disturbance, leading to loss of dexterity and impaired fine motor skills. Other complaints are weakness of both legs, loss of balance at times and reduced endurance of mobility. These have changed and limited his advanced daily activities. Dr Lau estimates that the Whole Person Impairment is 20%. 113.Insofar as the Applicant’s working capacity is concerned, his muscle weakness, loss of dexterity and lack of endurance would impact his performance. His previous duty in construction sites required high intensity manual work and intact balance. He is unable to return to his previous job and the loss of earning capacity is estimated to be 30%. 114.Dr Tsang considers that sick leave up till the expert report, ie 24 October 2022, is appropriate. APPEAL UNDER SECTION 18 Legal principles 115.The legal principles governing appeal under section 18 is well settled. The Court’s approach is to start afresh, relying not only on the certificate of the Board but also on any other evidence, especially medical evidence, adduced before it to assess the loss of earning capacity permanently caused by the injury suffered in an accident at work; Chu Chin Yiau v Ray On Construction Co Ltd [1992] 1 HKC 246. 116.The relevant consideration is not the seriousness of the injuries but the effect of the injuries on the earning ability of the injured employee; Yung Chi Man v Tang Kan Fu t/a Yun Shing Motor Service, DCEC 770/2004, 6 February 2006. Discussion 117.Mr Fong submits in his closing that the assessment in Form 7 and by Dr Lau have not taken into account (a) weakness in the lower limbs; (b) poor endurance in walking and poor dexterity in hands; (c) central cord syndrome; (d) myelo-radiculopathy; (e) intervertebral disk hemiations and/or alteration of motion segment integrity; (f) structural damage of the neck spines. Mr Fong invites the Court to accept Dr Tsang’s assessment and allow the appeal. 118.However, Mr Fong does not only urge the Court to accept Dr Tsang’s estimate of 30%. Mr Fong also asks the Court to add the highest end of Dr Lau’s estimate (ie 6%) to Dr Tsang’s estimate and adopt the aggregate percentage of 36% for the purpose of section 9. 119.With respect, Mr Fong’s approach is flawed. It is self-contradictory to, on one hand, allege that Dr Lau has failed to consider certain conditions of the Applicant when he assessed the Applicant’s loss of earning capacity and, on the other hand, ask the Court to adopt the highest end of his assessment. 120.Further, it appears to me that the conditions that Mr Fong says Dr Lau has missed out relate to injuries and symptoms. As mentioned above, the relevant consideration is not the seriousness of the injuries but the effect of the injuries on the earning ability of the injured employee. 121.It is Mr Ng’s submissions that the assessments of Dr Lau and Dr Tsang are “mile away” and this calls for explanation. I find force in Mr Ng’s submissions. The examinations by the two experts took place within a week’s time[6] and it is puzzling why their assessments are so different. 122.I note that Dr Lau’s assessment (1-6%) is comparable to that in Form 7 (4%). It is Dr Tsang’s assessment which is “at odds” with the assessment made by Dr Lau and the MAB. However, save for saying that the Applicant’s “muscle weakness, loss of dexterity, and lack of endurance would impact his performance” and his “previous duty in construction sites required high intensity manual work and intact balance”, Dr Tsang has not explained why his assessment is so much higher than Dr Lau and the MAB. In the absence of explanation, I cannot accept Dr Tsang’s even though the Respondents have not adduced any expert evidence. 123.Insofar as Dr Lau’s assessment is concerned, its medium (ie 3.5%) is even lower than the assessment in Form 7. 124.By reason of the aforesaid, I am not satisfied with the evidence adduced by the Applicant and would dismiss the Applicant’s appeal against Form 7. COMPENSATION Section 9 125.The Applicant was 63 years old at the time of the Accident. The applicable multiplier is 48. 126.It is the Applicant’s case that his income for the month immediately preceding the Accident was about $15,950 and his average income during the 12 months prior to the Accident was about $16,581. 127.In his witness statement, the Applicant listed out his monthly incomes from January 2019 to February 2020. The Applicant also produces copies of monthly calendars on which the workdays were marked. The Applicant’s evidence on pre-accident income is not challenged by Mr Ng. 128.Based on the Applicant’s evidence, his total income from February 2019 to January 2020, being the 12 months periods prior to the Accident, was $197,525 which is equivalent to $16,460 per month. Since the 12-month average income average is higher than the income in January 2020 (ie $15,950), I adopt the former, which is more favourable to the Applicant, in the assessment. 129.Alternative to the appeal against Form 7, Mr Fong urges the Court to adopt “paper mills” formula when assessing the compensation under section 9. 130.In Kwan Yee Chor v Hung Fau Metal Construction Co Ltd [2002] 2 HKLRD 768. In that case, although the Applicant’s injuries might not appear to be serious, he could not return to his pre-accident job which involved great physical demands, and he had little education and other special skills. The loss of earning capacity assessed by the MAB and expert were 6% and 8% respectively. His Honour Judge Lok (as he then was) said at paragraph 11 that:-
131.I am of the view that the Applicant’s situation is similar to that in Kwan Yee Chor. Both Dr Lau and Dr Tsang opines that the Applicant is unable to return to his pre-accident job because of the residual disabilities caused by the Accident. He has never received any formal education and can only read or write simple Chinese. He had been working as a construction worker since 2006 and has no other skills. Taking also into account the Applicant’s agree, I agree that, because of the Applicant’s disability and limitation in work capacity, he would likely be the first one to lose his job (if he is able to find one) in the event of any downturn in the economy: Mak Tin Chun v Yeu Sing Construction Co Ltd [1991] 2 HKLRD 460, at 466I. 132.Whilst employment prospect is a relevant consideration for assessing one’s earning capacity, the two are not to be equated. Instead of focusing on the Applicant’s prospect of employment, it is more pertinent for the Court to ask, for the purpose of s 9 and s 9(1A), to what extent, if any, the employee concerned is capable of being gainfully employed in an alternative employment which he was capable of undertaking at the time of the accident and what is the difference in earning capacity as a result of the injury; Lau Tat Wai v Ma Kim Chuen previously trading as Hop Tai Co, DCEC 629/2012, 13 June 2013, §19. 133.Evidence shows that the Applicant attended a security guard training course in November 2020 and successfully obtained a security personnel permit in December 2020. Although the Applicant’s experts have not made any recommendation on the alternative employment, I note that the Applicant’s working capacity is mainly affected by his poor endurance and inability to meet the high physical demand. I take the view that security guard is a suitable job for the Applicant. 134.According to the Quarterly Report of Wage and Payroll Statistics (for June 2020), the average income of male building attendant/guard was $13,571. When compared with the Applicant’s pre-accident income, I agree that the assessment in both the Form 7 (ie 4%) and by Dr Lau (ie 1-6%) are substantially less than the percentage of loss and this is an appropriate case to invoke section 9(1A). Adopting the average income of $13,571, the compensation under section 9 is assessed as follows:-
Section 10 135.The sick leave period endorsed by the MAB (ie up to 25 July 2022 or 894 days) and Dr Lau (ie up to 28 July 2022 or 897 days) are almost the same. Dr Tsang however suggests that sick leave should be granted up to the date of his report (ie 24 October 2022 or 985 days). Once again, it is Dr Tsang who is “at odds” with Dr Lau and the MAB. In light of my comments on Dr Tsang’s opinion on loss of earning capacity, I have reservation on his opinions on sick leave period as well. 136.As I have dismissed the Applicant’s appeal against Form 7, I would adopt MAB’s assessment and assess the compensation under section 10 as follows:-
Section 10A 137.The Applicant’s claim under section 10A is $5,005. The claim is not challenged by the Respondents and I allow it in full. Summary of assessment 138.The total amount of compensation is therefore:-
139.It is accepted by the Respondents that the payment of $70,400 is unrelated to the Accident and therefore no credit should be given to the said sum. ORDER 140.I therefore order that:-
141.Having considered the circumstances of the case, I am of the view that it is reasonable for the Applicant to sue the 1st Respondent. I therefore make the following costs order nisi that:-
142.The above costs order nisi shall become absolute in the absence of application to vary within 14 days. 143.Lastly, I thank both Mr Fong and Mr Ng for their assistance in this matter.
Mr Forest Fong, instructed by KCL & Partners, assigned by DLA, for the Applicant Mr Steve Ng, of Messrs Ng & Shum, for the Respondent [1] It is not disputed that Mr Lai Kwok Wing was at all material times the sole proprietor of Ming Kee Engineering Limited and he is sued in such capacity as the 2nd respondent in the present case [2] “由2020年2月1日開始,本公司退出西竺林寺工程,該工程由蔡俊賢在內几位工人自雇進行,所有款項亦不經過本公司” [3] “事故車輛駕駛人李永景已於2019年9月离职,發生該交通意外時已非本公司人員`” [4] According to the 1st respondent, the contract sum was received in May 2020 [5] R1’s appeal was dismissed by the Court of Appeal on 10 November 2023; see [2023] HKCA 1273 [6] Dr Lai examined the Applicant on 6 October 2022 and Dr Tsang on 10 October 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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