Read the full judgment text of HCCT 23/2009 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 16 December 2009 before Hon Reyes J in Chambers.
Construction Law — Nominated Sub-Contractors — Letter of Intent — Contractual Liability — Payment Obligations — The plaintiff, Jets Technics Limited, was nominated as a sub-contractor for a project by the defendant, the Hong Kong Jockey Club, the Employer, with TOP as the Main Contractor. Jets claimed payment from the Jockey Club under a Letter of Intent dated 5 February 2008, which permitted Jets to commence work and indicated Jets would get paid despite no formal sub-contract or written acceptance by the Main Contractor. The court clarified that under a typical nominated sub-contract arrangement, no direct contractual relationship or payment obligation arises between the Employer and the sub-contractor; such obligations rest with the Main Contractor. The LOI did not create any unusual or direct payment liability on the Jockey Club beyond the standard practice. Consequently, the Jockey Club’s application to strike out Jets’ claim succeeded. The court dismissed Jets’ action against the Jockey Club. The plaintiff’s subsequent appeal was also dismissed by the Court of Appeal (CACV11/2010).
Legal issues: Liability of Employer under Letter of Intent for Nominated Sub-Contractor
Outcome: The Jockey Club’s application to strike out the claim was granted; Jets’ action against the Jockey Club was dismissed.
Cited by 2 cases