Read the full judgment text of HCCT77/2006 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 26 March 2007 before Hon Burrell J.
Construction law — Sub-sub-contract dispute — Claim for retention sums and variation works payments — Application under Order 14 for summary judgment partially granted — Issues on appeal relating to premature issuance of proceedings, existence of pay-when-paid clauses, and valuation of variations — DLP was expired and defects signed off at writ issuance, thus writ not premature. Pay-when-paid clauses (Clauses 6(1) and (2)) were crossed out with no valid objection; no triable issue on their existence. The valuation of variations remained a genuine dispute warranting conditional leave to defend. Defendant granted conditional leave to defend upon payment of $500,000 into court; costs of appeal in the cause; amended defence permitted with costs to the plaintiff. These findings clarify enforceability of contractual payment provisions and procedural propriety in construction payment disputes.
Legal issues: Premature writ for retention money · Existence of pay-when-paid clause · Valuation of variation works as live issue
Outcome: Appeal allowed in part; conditional leave to defend Items 7, 8 and 9 upon payment of $500,000 into court; leave to amend defence granted in relation to these items.