Read the full judgment text of HCCT40/1999 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 21 June 2002 before Hon Burrell J in Chambers.
Construction and Arbitration Proceedings — Contract Payment Dispute — Quantum Assessment — Interim Payment — Application of Court of Appeal Formula — Interest Calculation — Source of Payment Funds — Court of Appeal Order Interpretation. This case concerns an application for an interim payment after the Court of Appeal remitted the question of quantum to the High Court. The main legal issues determined include the quantum calculation for interim payment applying the Court of Appeal's formula (3% of the contract price plus any shortfall between actual costs and 97% of contract price), the inclusion of interest at prime +1%, and whether the interim payment should be made from the monies already paid into court. The court held that the interim payment should be based on the Court of Appeal's formula and provisional but sufficiently reliable figures, resulting in a sum of approximately $6.4 million including interest. However, as the monies in court total approximately $4.6 million, representing about 72% of the calculated sum, the interim payment was limited to that amount. The court further held that, due to the Court of Appeal's order requiring the balance to remain in court until final determination, the interim payment should not be paid from the money held in court unless the Court of Appeal so directs. Finally, the court ordered the payment to be made on or before 26 July 2002 and made costs order nisi in favor of the plaintiff. This decision clarifies the application of appellate directions on quantum and proper sources for interim payment funds in construction contract disputes. Costs and procedural orders were also set out.
Legal issues: Interim payment quantum calculation · Source of interim payment funds · Payment timeline for interim payment
Outcome: Interim payment ordered to plaintiff by defendant on or before 26 July 2002; costs order nisi granted in plaintiff's favour.
Cited by 2 cases