Read the full judgment text of CACV 84/2008 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 28 November 2008 before Hon Le Pichon JA, Burrell and Wright JJ.
Contract law — Construction and interpretation — Variation and additional works — Oral requests and agreement on unit rates — Quantum meruit — Indemnity claims — Contra charges — Evidence — Appeal. The plaintiff, subcontracted for installation of STACs, entered into a lump sum contract with Fortress, the main subcontractor to the main contractor Chun Wo. Prior to contract, a lower than normal installation rate was agreed based on 'back-to-back' installation. Subsequently, design changes required repositioning STACs and additional work with longer drainage pipe runs. The plaintiff performed extra work on oral instruction and invoiced accordingly. Fortress contested the contractual basis for rates and sought to pass on Chun Wo's contra charges. The judge allowed the plaintiff’s invoices after finding the factual matrix and evidence supported the terms and rates, disallowing most contra charges. The Court of Appeal rejected challenges to the contract construction, acceptance of rates, and the contra charges claim as premature. The appeal was dismissed with costs awarded to the plaintiff.
Legal issues: Construction of the contract · Basis for allowing items under invoices 090 and 061 · Liability for pipe sleeves (item 3) · Liability for re-doing damaged refrigerant pipes (item 4) · Claim for contra charges by Fortress to be passed on to plaintiff · Liability for rubbish removal charges
Outcome: Appeal by Fortress dismissed; judgment of Reyes J ordering Fortress to pay plaintiff upheld.