Read the full judgment text of HCCT127/1999 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 26 July 2002 before Hon Burrell J.
Construction and Arbitration Proceedings — Joint venture guarantee — Liability of joint venturer for contractor’s defaults — Strict construction of guarantees in favour of surety — No novation or assignment of building contract obligations to joint venture — Guarantee liability limited to Joint Venture’s own obligations — Fujita not liable for liquidated damages arising from B+B’s defective work. Estoppel — Representation that liquidated damages would cease if Fujita completed works — Fujita relied upon assurance — Commercial context supportive — Estoppel found in alternate scenario. Plaintiff’s claim under guarantee dismissed; costs follow event. Appeal dismissed by Court of Appeal (CACV000346/2002).
Legal issues: Construction of Joint Venture Guarantee · Promissory Estoppel Regarding Liquidated Damages
Outcome: Claim against Fujita under the Joint Venture guarantee dismissed; costs ordered to follow the event in favour of the defendant.