Hang Seng Finance Ltd. v. Kwok Hon Chiu

HCA010529/1999

HCA10529/1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 10529 OF 1999

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Coram: Master de Souza in Court

Date of Hearing: 16 January 2002

Date of Judgment: 16 January 2002

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ASSESSMENT OF DAMAGES

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1.On 23 July 1999, final and interlocutory judgment in default of defence was entered against the defendant, Kwok Hon-chiu in favour of the plaintiff, Hang Seng Finance Limited, who today is represented by Madam Fu Him, an officer of that company duly authorised to act on its behalf. The said order provided for assessment of damages which is returnable today.

2.Madam Fu Him briefly gave evidence, essentially adopting her affirmation evidence as her evidence-in-chief. Her affirmation sets out very clearly the plaintiff's case and its loss pursued against the defendant.

3.These proceedings arise out of an agreement in writing dated 9 July 1997 for hire purchase between the plaintiff and the defendant . The defendant undertook to hire purchase a Toyota Hong Kong and Kowloon taxi, vehicle registration No. GT 3760.

4.Under the agreement and pursuant to clauses 1 and 2 of the schedule of that agreement, the defendant made an initial payment of $342,738.49 and further undertook to make 247 monthly instalments each of $24,777.30.

5.The defendant eventually defaulted in making punctual payment as required under the agreement and the plaintiff, by letter dated 31 March 1999, notified its acceptance of the defendant's repudiation of the agreement and terminated the agreement for hire purchase.

6.The taxi was repossessed by the plaintiff and eventually sold to Shun On Motors Company for $2,136,000 on 3 June 1999 being the highest bid. The evidence demonstrates that the sale had been made after due and diligent efforts had been undertaken to secure the best price in mitigation of the loss sustained by Hang Seng Finance Limited.

7.Paragraph 13 of Madam Fu Him's evidence crystallises the damages sustained by the plaintiff. The amount claimed today is $452,374.75. The total hire purchase price of the vehicle, that is to say, the cash price of the said vehicle, together with the total hire charges amounted to $6,363,548.54. After proper and necessary deductions had been made, the net loss sustained and claimed in these proceedings is $452,374.75.

8.The evidence fully justifies the quantification of the plaintiff's loss at this figure and I see no difficulty in awarding that sum by way of today's assessment. In doing so, as I have indicated, I wholly accept the computation set out by Madam Fu Him in paragraph 13 of her affirmation.

9.It is therefore adjudged that the plaintiff shall receive from the defendant by way of damages $452,374.75 with interest thereon from 23 July 1999, the date when final and interlocutory judgment was entered in default of defence, at judgment rate until full payment of the adjudged sum.

10.Additionally, the plaintiff shall have its costs of the assessment, including any costs that may be reserved in respect thereof on party and party basis.

Representation:

Ms Rosanna Lee, of C Y Kwan & Co., for the Plaintiff

Defendant, in person, absent