Read the full judgment text of HCCT000016/1994 on BabelCite. This HIGH COURT judgment was delivered on 25 June 1997 before The Hon Mr Justice Findlay.
Construction Law — Contract and Negligence — Defective Granite Cladding — Duty of Care and Warranty — Limitation Period — Independent Contractor Liability — Quantum of Damages. The Bank of East Asia commissioned a new building with granite cladding fixed by Tsien Wui Marble Factory Limited, who delegated design to an Italian consultant. The granite cladding failed due to inadequate design provisions for movement in the fixing system. The Bank sued both Tsien Wui and Palmer and Turner (architects and engineers) for breach of warranty and negligence. The Court found Tsien Wui responsible for the fixing system design, rejected claims against Tsien Wui based on limitation and independent contractor principles, and accepted Palmer and Turner's liability in tort for negligent design. The cause of action accrued when defects became manifest and loss was discovered, approximately mid-1993, making the claims timely under the Limitation Ordinance. The proposed remedial works by Tsien Wui were an inadequate patch-up and rejected; full replacement was ordered. Claims against Tsien Wui dismissed; judgment for the Bank against Palmer and Turner. Costs orders made accordingly.
Legal issues: Limitation of Claims · Responsibility for Design of Cladding Fixing System · Breach of Duty and Negligence by Tsien Wui and its Consultant · Liability of Palmer and Turner for Design Failure · Acceptability of Proposed Remedial Works Cost by Tsien Wui
Outcome: The Bank's claim against Tsien Wui is dismissed. The Bank's tort claim against Palmer and Turner is upheld with judgment in favor of the Bank. Tsien Wui's third party claim against Palmer and Turner is dismissed.