Read the full judgment text of HCCT103/1999 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 13 November 2001 before Hon Burrell J in Chambers.
Construction and Arbitration Proceedings — Performance bond — Conditional bond distinct from on-demand bond — Liability triggered upon proof of breach and damage — Interest commencement date disputed — Defendant argued interest runs from admission or judgment date — Court held interest runs from date of notice of default to bondsman — Prevents incentivising delay in payment and accords with commercial reality — Plaintiff’s notice on 13 September 1999 accepted as appropriate date despite earlier notice of damages — Late amendment application to claim earlier date refused — Costs apportioned accordingly — Interest awarded at prime plus 1% on bonded sum from 13 September 1999.
Legal issues: Commencement date for interest on conditional bond · Appropriate date for starting interest in this case
Outcome: Interest was ordered to run at prime plus 1% on $39,880,000 from 13 September 1999. Costs of the application for interest were awarded to the plaintiff except for costs of the amendment application which were to the defendant.
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