Read the full judgment text of HCCT79/2006 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 17 September 2007 before Hon Burrell J.
Construction and Arbitration Proceedings—privity of contract—nominated subcontractor claims against employer—doctrine of privity and its exceptions—unjust enrichment—whether subcontractor can claim directly from employer bypassing main contractor—implied contract—direct payment clause in main contract—retention money—whether retention money held on trust—strike-out application. Yew Sang Hong Limited as nominated electrical sub-contractor under subcontract with Dickson Construction Company claimed against the Hong Kong Housing Authority arising from non-payment due to Dickson’s insolvency. The Housing Authority sought to strike out on grounds of no reasonable cause of action under Order 18 rule 19. The court held that (1) restitution based on unjust enrichment was barred by privity; (2) no implied contract arose between subcontractor and employer; (3) retention money was not held on trust as per contract provisions allowing deduction and set-off. The strike-out application was granted with costs to the defendant. An appeal against this decision was dismissed by CACV346/2007.
Legal issues: Unjust Enrichment and Leapfrogging Doctrine · Existence of Implied Contract between Yew Sang and HA · Retention Money Held on Trust
Outcome: Defendant's (HA) application to strike out plaintiff's (Yew Sang) claim granted with costs to defendant.
Cited by 2 cases