Read the full judgment text of HCPI 001157/1995 on BabelCite. This High Court CFI judgment was delivered on 20 November 1996 before Cheung J.
Civil law – Building Management Ordinance (Cap. 344) – section 16 – construction – liability of incorporated owners – whether corporation assumes liabilities incurred prior to incorporation – personal injury in common parts of building – plaintiff injured on 3 December 1992 – 2nd defendant (incorporated owners) incorporated on 17 May 1993 – preliminary issue whether pre-incorporation liabilities enforceable against the corporation – Grenville House Ltd & Ors v The Incorporated Owners of Grenville House [1978] HKLR 235 distinguished – corporation a distinct legal entity created by statute and should only assume prior liabilities if the Ordinance expressly so provides – section 16 contains no specific provision for pre-incorporation liabilities – liability only from date of incorporation fits naturally with consequences of incorporation – contrary interpretation would strain the language of the section – owners at incorporation may differ from those at time of tort – preliminary issue answered in the negative – order nisi that each party bears its own costs.
Legal issues: Whether s.16 of the Building Management Ordinance renders the incorporated owners liable for liabilities accruing prior to incorporation
Outcome: Preliminary issue answered in favour of the 2nd Defendant; section 16 of the Building Management Ordinance does not render the incorporated owners liable for liabilities accruing prior to incorporation.