Princeton Technology Corporation v. Vector Electronic Co. Ltd.

HCA004717/1998

HCA 4717/1998

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 4717 OF 1998

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Coram : Hon. Godfrey, J.A. in Chambers (sitting as an additional Judge of the Court of First Instance)

Date of hearing : 28 July 1999

Date of judgment : 28 July 1999

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J U D G M E N T

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1. This is an application for a stay of execution of a judgment obtained against the defendant, which has a counterclaim against the plaintiff for damages for breach of contract under an agency agreement of 2 December 1996.

2. The plaintiff has obtained judgment on its own claim for USD71,514.00 for goods (integrated circuits) sold and delivered to the defendant.

3. The plaintiff is a Taiwanese corporation. It paid HK$420,000.00 into court as security for the defendant's costs of the action, but this has been released to the plaintiff. The whole of the judgment sum has been paid into court where it will remain until an order is made for payment out.

4. I am asked to stay the execution of the judgment until after the trial of the defendant's counterclaim. The plaintiff says that the claim of the defendant is not connected with its own claim, and is not made bona fide. It says that the sales by the plaintiff to the defendant were transactions which stand alone and were not effected under the agency agreement, although the latter forms the basis of the relationship between the parties. And it says the counterclaim is not properly particularised.

5. In my judgment, the claim and counterclaim do have a close connection - the issue between the parties really is whether the goods supplied were or were not defective. And I see no good reason to doubt the bona fides of the defendant's counterclaim although it may not yet have been fully or sufficiently particularised. I will grant the stay of execution as asked.

Representation:

Mr. Richard Khaw, instructed by Messrs. Lo & Lo, for the Plaintiff

Mr. Kevin Wong, instructed by Messrs. Fung Wong Ng & Lam, for the Defendant

Remarks:
On appeal by the Plaintiff to the Court of Appeal: Appeal dismissed. Please refer to CACV000288/1999.