BOND STAR DEVELOPMENT LTD v. WANG XIAO QUN

BOND STAR DEVELOPMENT LTD v. WANG XIAO QUN

On a true and proper construction of Clause 1, the phrase 'exclusive of Rates and Service Charge' means 'in addition to Rates and Service Charge' and constitutes an express obligation on the licensee to pay rates and service charge; the background (company's liability to pay rates and to the manager under the DMC and evidence that the manager's charge was explained) supports this interpretation; appeal dismissed.

Citation
BOND STAR DEVELOPMENT LTD v. WANG XIAO QUN
Parties
Claimant (respondent): Bond Star Development Limited; Defendant (appellant): Wang Xiao Qun
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 December 2017
Case Number
HCSA24/2017
Procedural Posture
Small Claims Tribunal Appeal (court of First Instance) / Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Contract Interpretation, Service Charge, Licence Agreement, Management Fee
Source Language
EN
Contract Law Property Law Contract Interpretation Service Charge Licence Agreement Management Fee

Case Brief

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Parties

Bond Star Development Limited

Claimant (respondent)

Wang Xiao Qun

Defendant (appellant)

Procedural Posture

Small Claims Tribunal Appeal (court of First Instance) / Appeal Judgment

Legal Issues

  1. 1 Whether clause 1 of the licence agreement (the phrase 'exclusive of Rates and Service Charge') imposes an express obligation on the licensee to pay service charges and rates
  2. 2 Whether there was any agreement or unilateral imposition obliging the licensee to pay the service charge
  3. 3 Proper approach to contractual construction in the commercial context with regard to background matrix

Ratio Decidendi

On a true and proper construction of Clause 1, the phrase 'exclusive of Rates and Service Charge' means 'in addition to Rates and Service Charge' and constitutes an express obligation on the licensee to pay rates and service charge; the background (company's liability to pay rates and to the manager under the DMC and evidence that the manager's charge was explained) supports this interpretation; appeal dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Order nisi that appellant (Wang Xiao Qun) pay respondent's costs of the appeal, to be taxed if not agreed