Read the full judgment text of HCCT 18/2010 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 20 April 2012 before Mr Recorder A Ho, SC.
Construction law — Subcontract and sub-subcontract — Interpretation of 'back-to-back payment basis' — Contractual payment timing and entitlement — Withdrawal and variation of works orders (WOs) — Claims for loss of profits — Redundant materials costs — Over-deduction of granite tile costs — Allegations of fraud — Credibility and evidential assessment — Interest and costs awarded. This case concerns a sub-subcontract between Tim Lee and Super King, with Super King as subcontractor to Wan Chung contracted by The Link for maintenance works. The court held that 'back-to-back payment basis' in the 3 August 2005 Agreement means Super King's obligation to pay Tim Lee arises only upon receipt of payment from Wan Chung. Tim Lee failed to prove wrongful withdrawal of works or the quantum of loss of profits. Although there was an over-deduction of granite tile costs by Super King, the claim of fraud was not sufficiently pleaded or proved. Tim Lee was entitled to damages for redundant materials and outstanding payments under various WOs totaling $758,801.29 plus interest. Super King’s counterclaim was dismissed, and costs were awarded to Tim Lee.
Legal issues: Meaning of 'back-to-back payment basis' · Claim for loss of profits due to withdrawal or reduction of works · Claim of over-deduction of granite tile costs and alleged fraudulent misrepresentation · Claim for redundant materials due to withdrawal of works · Claim for underpayment in respect of 1st, 3rd, 4th, and 6th WOs · Claim for outstanding balance under the 5th WO · Dismissal of Super King’s counterclaim
Outcome: Judgment for the plaintiff, Tim Lee, with various sums awarded; Super King’s counterclaim dismissed.
Cited by 1 case · Cites 3 cases