Read the full judgment text of CACV 153/99 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 9 November 1999 before Leong J.A., Keith J.A..
Contract — Guarantees — Payment on demand — Performance bonds — Validity of letters of demand — Substantial compliance or strict compliance — Economic duress and misrepresentation defences — Late filing of evidence — Extension of time — Discretion — Fiduciary duty — Retention monies — Appeal procedure. The Hong Kong Housing Society entered two construction contracts with Hing Lee Construction Co. Ltd. and retained retention monies totalling HK$21.8 million under supplementary agreements, guaranteed by Mr. Tang Kar Hung, a director of Hing Lee. Hing Lee failed to repay the sums; the Society demanded payment under performance bond guarantees. Mr. Tang sought to resist summary judgment by alleging breaches of contract by the Society, economic duress, and misrepresentation, some defences abandoned before hearing. The court held the guarantees were payable on demand without proof of default. The refusal to extend time for late evidence on economic duress and misrepresentation was upheld given no realistic chance of defence success and procedural delay without explanation. The letters of demand were objectively in strict compliance with the guarantees' terms despite arguments to the contrary. The newly raised argument on appeal about breach of fiduciary duties relating to sub-contractors' retention monies was disallowed as it involved new facts and required fresh evidence. The appeal was dismissed with costs ordered against Mr. Tang.
Legal issues: Refusal to extend time for filing evidence of economic duress and misrepresentation · Compliance with demand conditions in guarantees · Raising new argument of fiduciary duty breach on appeal
Outcome: Appeal dismissed; summary judgment and order for payment upheld
Cited by 2 cases