Read the full judgment text of HCCT3/2006 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 27 February 2007 before Hon Poon J.
Construction contract dispute; principal contractor LEE CHAU MOU (plaintiff) engaged KIN SING ENGINEERING (defendant) as subcontractor for water supply works. Defendant delayed substantial works amid manpower shortages and management issues. Plaintiff terminated subcontract under express Clause 5 after issuing 4 warning letters. Defendant alleged plaintiff breached implied procurement and permit duties and failed to pass on interim payments causing delay; court rejected these claims affirming plaintiff’s entitlement to deduct payments and loans advanced. Court found plaintiff’s termination lawful under Clause 5 due to persistent and substantial delay. Plaintiff’s damage claims fully accepted based on consistent evidential records; defendant’s counterclaim substantially reduced and dismissed. Under Employment Ordinance Part IXA, plaintiff entitled to recover wages paid to defendant’s workers as debt but not legal costs. Court ordered damages to plaintiff totaling over HK$2.4 million with interest, dismissed legal costs claim and counterclaim, and awarded costs to plaintiff. Judgment delivered by Hon Poon J of High Court on 27 February 2007.
Legal issues: Existence and breach of implied terms under the Sub-Contract · Responsibility for cash flow problems and interim payments · Entitlement to terminate under Clause 5 of the Sub-Contract · Quantum of damages for termination · Recovery under Part IXA of the Employment Ordinance, Cap.57
Outcome: Judgment entered for the plaintiff for HK$2,410,451.26 with interest; declaration that plaintiff is entitled to recover HK$241,182.50 paid under the Labour Tribunal ruling with interest; plaintiff’s claim for legal costs HK$8,500 dismissed; defendant’s counterclaim dismissed; costs to plaintiff to be taxed if not agreed.