Read the full judgment text of HCCT 4/2012 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 26 June 2014 before Hon Au J in Chambers.
Construction Law – Litigation funding – Champerty and maintenance – Equitable assignment – Locus standi – Limitation periods – Abuse of process – Stay order – Joinder of parties. The plaintiff, a litigation funder, sued for debts assigned by liquidators of a subcontractor company against the defendant contractor. The defendant applied to strike out the claim alleging champerty, lack of proper party, time-barred claims, and abuse of process. The court held the assignment deed fell within the 'access to justice' exception to champerty and maintenance, thus valid. However, as the assignment was equitable, the liquidators must be joined to complete the title to sue, and the court stayed the proceedings until their joinder. Regarding limitation, the court construed payment clauses and held payment obligations arose on issue of final certificates, meaning claims were made within limitation periods. The defendant’s assertion that the claims were vexatious based on admitted payments was rejected, given genuine disputed amounts remain. The defendant's strike out applications were dismissed except for stay pending joinder. Costs were partially awarded to the plaintiff.
Legal issues: Champerty and maintenance · Whether Liquidators must be joined due to equitable assignment · Time-barred nature of claims under Subcontracts · Vexatious and frivolous claims due to alleged admitted payments
Outcome: Defendant's striking out applications dismissed except for stay of action pending joinder of True Light through the Liquidators.
Cites 1 case