Read the full judgment text of HCCT 109/1999 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 24 January 2006 before Hon Reyes J.
Contract — Sale of Goods — Supply of glazed mosaic tiles — Contract requiring compliance with JIS A 5209 standard and tile colour approval — Tiles discoloured after cleaning with diluted KF-28 cleaning agent — Whether United Building Material obliged to supply tiles not discolouring under mild acidic cleaning — Held: contract imposed such an obligation under merchantable quality implied by Sale of Goods Ordinance s.16 — United breached contract by supplying discoloured tiles. Damages — Application of remoteness test (Hadley v. Baxendale) — Recovery allowed for cost of replacement tiles at Fan Ling and Queen's Road sites, as naturally arising and within reasonable contemplation at contracting — Prolongation costs and liquidated damages for delay held too remote and not recoverable. Set-off — United's claim for unpaid invoices offset by E Man's damages resulting in net sum payable to E Man. Interest awarded from material counterclaim amendment date. Costs ordered in favour of E Man at 70% to reflect partial success. Judgment entered in E Man's favour for net sum of $3,301,415.70 with interest and partial costs.
Legal issues: United's obligation under the contract · United's breach of contract · E Man's entitlement to damages · Effect of E Man's damages on United's claim
Outcome: Judgment in favour of E Man for net sum of $3,301,415.70 with interest and partial costs recovery.
Cited by 1 case