Read the full judgment text of FAMV1/2011 on BabelCite. This Court of Final Appeal judgment was delivered on 5 May 2011 before Chief Justice Ma, Mr Justice Bokhary PJ and Mr Justice Ribeiro PJ.
Civil procedure – leave to appeal – liquidated sum – 'or otherwise' ground – contractual interpretation – convertible bonds – redemption formulae – Court of Final Appeal – The plaintiff entered into an agreement subscribing for HK$20 million of convertible bonds with two redemption formulae. The trial judge applied formula (ii) awarding $104,010,717.29. The Court of Appeal held formula (ii) was inoperable and the plaintiff was only entitled to $41,783,117.00 under formula (i). The plaintiff sought leave to appeal to the Court of Final Appeal, arguing first that leave was as of right because the claim was for a liquidated sum, and alternatively on the 'or otherwise' ground. The Appeal Committee held that the claim was not for a liquidated sum because it required interpretation of a disputed contractual formula and quantification of questionable component figures. Leave was not as of right. The 'or otherwise' ground was not applicable as the case was not highly exceptional and the contractual intention (allowing reliance on formula (i) if formula (ii) was inoperable) had been achieved. The Court of Appeal's reasoning was compelling. Application dismissed with costs.
Legal issues: Leave to appeal as of right · Leave to appeal on the 'or otherwise' ground
Outcome: Application for leave to appeal dismissed with costs.
Cited by 1 case · Cites 1 case