Read the full judgment text of HCCT 122/2000 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 31 August 2007 before Mr Recorder Rimsky Yuen, SC.
Construction law — Joint Venture Agreement (JVA) — Whether an oral or implied joint venture existed between contractors for a subcontract work in a railway station project — Plaintiff claims breach by Defendant awarding subcontract to third party — Key issues: existence of oral JVA on 26 May 2000; existence of implied JVA; entitlement to wasted costs and lost profits. The Plaintiff and Defendant were specialist contractors with prior joint venture experience. The Plaintiff alleged an oral JVA for the Long Ping Station work was formed after meetings in May 2000. Defendant denied any joint venture, submitting tenders solely in its own name and awarding the steelwork subcontract to Havens Steel. The Plaintiff also changed the date of the alleged oral JVA during trial following evidence that Defendant’s principal was abroad at that time. The Court found no oral or implied joint venture existed, based on inconsistent conduct, absence of notification to the main contractor, and tender documents naming only the Defendant. Plaintiff’s key witness was found not credible; Defendant’s witness was reliable. As tender preparation costs were within the ambit of a prospective subcontractor, Plaintiff’s claim for wasted costs failed. Loss of profit claims stood or fell on the joint venture claims and were dismissed accordingly. Defendant is ordered to pay costs of an adjournment related to changed evidence. The dispute highlights the evidential and commercial considerations in proving joint venture agreements and recovering bid costs in construction projects.
Legal issues: Existence of Oral Joint Venture Agreement (JVA) · Existence of Implied Joint Venture Agreement (JVA) · Recovery of Wasted Costs and Expenses
Outcome: Plaintiff’s claims for breach of joint venture agreement, wasted costs, and loss of profit are dismissed; Defendant ordered to pay costs occasioned by one-day adjournment.
Cited by 2 cases · Cites 2 cases