Read the full judgment text of HCCT4/2009 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 6 August 2010 before Hon Saunders J.
Construction law — Contract disputes — Fitting out and alteration works — Three contracts (A, B, and C) — Liability for variations — Evidence of oral acceptance and invoicing — Extent of work completion — Assessment of contractor's profit — Termination of contract by contractor — Owner's repudiatory conduct — Illegal structures on premises — Defect claims — Credibility of witnesses — Failure to call key witness — Adverse inference — Costs and interest awarded. WOON LEE (HK) COMPANY LIMITED sued HOLYROOD LIMITED for unpaid works under contracts relating to a residential development at 10-12 Peak Road, HK. HOLYROOD counterclaimed for alleged defects. The court rejected the owner’s witness Ms Oung's evidence as unreliable and disbelieved her explanations on multiple points including contract existence and variations. The absence of evidence from the owner’s de facto authorised person Mr Dianto resulted in an adverse inference against the owner. The court accepted the contractor’s version on liability for variations, the extent of completion of work under contracts B and C, and the 30% profit figure on variations. It found the contractor lawfully terminated contract C due to the owner’s breach and repudiation by denying site access, failing to pay progress payments, and withholding instructions. Claims for defects by the owner were dismissed for lack of credible evidence. The judgment directed the Registrar to forward it to the Buildings Department regarding illegal cocklofts on the property. The owner was ordered to pay outstanding sums with interest and bear costs on a party and party basis, with leave reserved for parties to quantify amounts due.
Legal issues: Liability for variations without signed acceptance · Extent of work completion under contracts B and C · Assessment of contractor's profit percentage on variations · Lawfulness of termination of contract C by contractor · Responsibility for alleged defects · Adverse inference for failure to call key witness (Mr Dianto)
Outcome: Judgment substantially in favour of the contractor; owner liable to pay outstanding sums including variations; contractor’s termination of contract C was lawful; claims for defects by owner dismissed; contractor entitled to loss of profits and interest; owner ordered to bear costs on party and party basis.
Cited by 3 cases