Read the full judgment text of HCCT12/2008 on BabelCite. This HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE judgment was delivered on 16 July 2009 before Hon Burrell J.
Construction contract dispute between Artlane Design Consultants Limited and CHAN WEN MEE MAY regarding extensive property renovation works. Main disputes concerned contractual terms, project management role, design responsibility between builder and independent designers 'And Plus Ltd', completion delays, and defects including marble flooring quality. Court found no formal project manager role; design defects attributed mainly to separate designer contract; delay caused by additional works without sufficient proof of fault by plaintiff; substantial performance achieved at defendant's occupation; termination disputed but no clear repudiation by either party. The defendant’s inflated counterclaim for rectifications was discounted substantially. Court awarded plaintiff $2,459,198 for contract sums and variations less payments received; allowed defendant’s counterclaim for $721,340 after reductions due to overpricing and partial liabilities; retention monies to be applied to remedial work. Interest at prime plus 1% allowed on both claims from writ date; costs reserved for further submission. Legal principles on practical vs substantial completion and assessment of delay claims underscored.
Legal issues: Existence and role of project manager · Responsibility for design works between Artlane and And Plus · Claims and liability for delay · Completion and substantial performance · Termination of contract and repudiation · Proportionality and reliability of counterclaim for rectification works
Outcome: Plaintiff's claim allowed in part for $2,459,198; defendant’s counterclaim allowed in part for $721,340; retention money to be used for remedial purposes; interest awarded at prime plus 1% from writ date on a nisi basis.