SAMSUNG ELECTRONICS LTD AND OTHERS v. J & C CARGO SERVICES CO LTD AND ANOTHER

SAMSUNG ELECTRONICS LTD AND OTHERS v. J & C CARGO SERVICES CO LTD AND ANOTHER

The 1st and 2nd defendants were properly characterised as bailee and sub-bailee for reward and failed to discharge the burden of proving they exercised all reasonable care; accordingly both are liable for the loss of the telephones and judgment is entered for the insurer for the invoice-value loss of US$1,638,360.00.

Citation
SAMSUNG ELECTRONICS LTD AND OTHERS v. J & C CARGO SERVICES CO LTD AND ANOTHER
Parties
1st Plaintiff: Samsung Electronics Limited; 2nd Plaintiff: Samsung Fire & Marine Insurance Company Limited; 3rd Plaintiff: Ezcom Electronics Limited; 4th Plaintiff: CEIEC (H.K.) Limited; 1st Defendant: J & C Cargo Services Company Limited; 2nd Defendant: Yeung Kwok Cheung trading as Yeung's Logistics Company
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 February 2008
Case Number
HCCL14/2005
Procedural Posture
Commercial Action (bailment/transportation/theft) / Judgment (court of First Instance)
Outcome
Judgment for 2nd plaintiff (Samsung Fire & Marine Insurance Company Limited) against 1st and 2nd defendants
Legal Topics
Bailee for Reward, Sub Bailment, Delegation to Subcontractor, Burden of Proof, Quantum of Damages, Hearsay Evidence
Source Language
EN
Bailment Tort (negligence) Commercial Law Insurance Law Evidence (hearsay) Bailee for Reward Sub Bailment Delegation to Subcontractor +3 more

Case Brief

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Parties

Samsung Electronics Limited

1st Plaintiff

Samsung Fire & Marine Insurance Company Limited

2nd Plaintiff

Ezcom Electronics Limited

3rd Plaintiff

CEIEC (H.K.) Limited

4th Plaintiff

J & C Cargo Services Company Limited

1st Defendant

Yeung Kwok Cheung trading as Yeung's Logistics Company

2nd Defendant

Procedural Posture

Commercial Action (bailment/transportation/theft) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the 1st and 2nd defendants, as bailee and sub-bailee for reward, took all reasonable care of the consignment
  2. 2 Whether nomination or habitual use of a subcontractor absolves the bailee of liability
  3. 3 Whether the defendants are liable for acts or omissions of the driver/subcontractor

Ratio Decidendi

The 1st and 2nd defendants were properly characterised as bailee and sub-bailee for reward and failed to discharge the burden of proving they exercised all reasonable care; accordingly both are liable for the loss of the telephones and judgment is entered for the insurer for the invoice-value loss of US$1,638,360.00.

Court Disposition

Judgment for 2nd plaintiff (Samsung Fire & Marine Insurance Company Limited) against 1st and 2nd defendants

Orders

  • Judgment for the 2nd plaintiff against each of the 1st and 2nd defendants in the sum of US$1,638,360.00
  • Interest to run on the said sum from the date of payment by the 2nd plaintiff to the 3rd plaintiff until the date of judgment at the rate of 1% over US dollar prime rate from time to time prevailing, and thereafter on the principal sum of US$1,638,360.00 at the judgment rate from time to time prevailing until payment