Read the full judgment text of HCCT 1/2009 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 6 August 2013 before Hon Au J.
Partnership Law — Contract disputes — Payment under subcontract — Status of party as partner or employee — s 38 Partnership Ordinance — Final account — Loan deductions. The Plaintiff, Fu Cheung, claimed outstanding payments under an oral subcontract for electrical works with Win Tat Ltd and alleged unauthorized deductions representing loans advanced by Defendants. A central issue was whether Mr Leung was a partner of the Plaintiff or merely an employee. The court found, on balance of probabilities, that Fu Cheung was a partnership between Mr Choy and Mr Leung from commencement until dissolution. Even if Fu Cheung had become a sole proprietorship later, no notice was given to Win Tat Ltd under s 38 PO, entitling it to treat Mr Leung as a partner in dealings. Payments made in the manner requested by Mr Leung were (a) confirmed orally by Mr To with Mr Choy, and (b) further validated by a final account signed in January 2001, admitting receipt of the final sum and settling all payment obligations. Loans advanced by the defendants were proven by credible evidence or accepted under the final account. The Plaintiff’s claims were dismissed, and costs awarded to the Defendants on a taxed basis with a nisi order.
Legal issues: Whether Fu Cheung was a partnership · Entitlement under s 38 Partnership Ordinance · Whether payments were consensually confirmed by Mr Choy · Binding effect of the final account · Proof of loans advanced by defendants
Outcome: Fu Cheung’s claims dismissed; action dismissed.