TAK AH KNITWEARS & GRAMENT FACTORY LTD v. TRIPLE CROWN LTD

TAK AH KNITWEARS & GRAMENT FACTORY LTD v. TRIPLE CROWN LTD

Court found (1) Triple Crown contracted as agent for Ananas but the agency was undisclosed for Purchase Order A049 (28.2.84) so Triple Crown remained personally liable for that invoice; by 30.8.84 (Purchase Orders A431/A432) Ananas was disclosed so Triple Crown not liable for those invoices. (2) Late deliveries were predominantly caused by Ananas' late supply of yarn and in many instances no binding revised delivery dates were agreed, so Ananas' claims for airfreight failed. (3) Tak Ah was liable for a proportion of defects in Purchase Order A049 (court apportioned responsibility) and liable for certain admitted defective pieces leading to awards to Ananas (US$37,625.28 and HK$6,893.98)....

Citation
TAK AH KNITWEARS & GRAMENT FACTORY LTD v. TRIPLE CROWN LTD
Parties
Plaintiff (hca 7052); Defendant (hca 7833): Tak Ah Knitwears & Garment Factory Limited; Defendant (hca 7052); Defendant (consolidated): Triple Crown Limited; 1st Plaintiff (hca 7833); Undisclosed/disclosed Principal Issue: Ananas Limited; 2nd Plaintiff (hca 7833); Not Pursued at Trial: Shee Hing Trading Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 January 1988
Case Number
HCA7052/1985
Procedural Posture
Contract Sale of Goods / Manufacture (cmt Knitwear) / Judgment Following Full Trial (consolidated H.c. Actions 7052/85 and 7833/85)
Outcome
Split judgment: partial success for Tak Ah on unpaid invoices and partial success for Ananas on defects; surplus yarn claim dismissed; costs reserved.
Legal Topics
CMT Contracts, Undisclosed Principal, Delivery/delay Damages, Defective Goods, Surplus Raw Materials, Loss of Profits, Set Off
Source Language
EN
Contract Agency Sale of Goods Commercial Law CMT Contracts Undisclosed Principal Delivery/delay Damages Defective Goods +3 more

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Parties

Tak Ah Knitwears & Garment Factory Limited

Plaintiff (hca 7052); Defendant (hca 7833)

Triple Crown Limited

Defendant (hca 7052); Defendant (consolidated)

Ananas Limited

1st Plaintiff (hca 7833); Undisclosed/disclosed Principal Issue

Shee Hing Trading Company Limited

2nd Plaintiff (hca 7833); Not Pursued at Trial

Procedural Posture

Contract Sale of Goods / Manufacture (cmt Knitwear) / Judgment Following Full Trial (consolidated H.c. Actions 7052/85 and 7833/85)

Legal Issues

  1. 1 Whether Triple Crown acted as agent for Ananas/Shee Hing and whether agency was disclosed or undisclosed
  2. 2 Whether defects in garments were caused by Tak Ah's workmanship or by inferior yarn supplied by buyer (Ananas)
  3. 3 Whether Tak Ah was liable for delay damages and air freight given alleged revised delivery dates

Ratio Decidendi

Court found (1) Triple Crown contracted as agent for Ananas but the agency was undisclosed for Purchase Order A049 (28.2.84) so Triple Crown remained personally liable for that invoice; by 30.8.84 (Purchase Orders A431/A432) Ananas was disclosed so Triple Crown not liable for those invoices. (2) Late deliveries were predominantly caused by Ananas' late supply of yarn and in many instances no binding revised delivery dates were agreed, so Ananas' claims for airfreight failed. (3) Tak Ah was liable for a proportion of defects in Purchase Order A049 (court apportioned responsibility) and liable for certain admitted defective pieces leading to awards to Ananas (US$37,625.28 and HK$6,893.98)....

Court Disposition

Split judgment: partial success for Tak Ah on unpaid invoices and partial success for Ananas on defects; surplus yarn claim dismissed; costs reserved.

Orders

  • Judgment for Tak Ah Knitwears & Garment Factory Ltd. against Triple Crown Limited for HK$95,190 (Invoice B/294)
  • Judgment for Tak Ah Knitwears & Garment Factory Ltd. against Ananas Limited for HK$81,135 (Invoices B/297 and B/298)