CHEUNG HUNG YUK v. CHIU CHAN AND OTHERS

CHEUNG HUNG YUK v. CHIU CHAN AND OTHERS

The District Court has jurisdiction to entertain indemnity claims under section 24 of the Employees' Compensation Ordinance even where the claimed sums exceed the normal $60,000 jurisdictional limit; intervention and third party joinder under Rules 22-24 apply to s24 claims; the court may convert a third party into a respondent at any stage including after settlements if proceedings are stayed; indemnity accrues upon liability under s24(2) without requiring a judgment debt.

Citation
CHEUNG HUNG YUK v. CHIU CHAN AND OTHERS
Parties
Applicant (for Dependant of Lau Yee Ngau Deceased): Cheung Hung-yuk; 1st Respondent: Chiu Chan; 2nd Respondent: Hui Tak-yick trading as United Company; 3rd Respondent: Hing Kee Construction Co. Ltd.; 1st Third Party: Chow Chung-lun; 2nd Third Party: Chiu Chan
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
26 April 1985
Case Number
DCEC167/1984
Procedural Posture
Employees' Compensation / Ruling on Application for Indemnity and Jurisdiction Under Section 24
Outcome
Ruling: District Court has jurisdiction to entertain the indemnity claims under s24; court may convert/join the third party as respondent despite settlements which leave the applicant's proceedings stayed.
Legal Topics
Indemnity Under Employee Compensation Ordinance S24, District Court Jurisdictional Limit, Third Party Proceedings and Intervention (rules 22 24), Effect of Settlement and Stay on Joinder
Source Language
EN

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Parties

Cheung Hung-yuk

Applicant (for Dependant of Lau Yee Ngau Deceased)

Chiu Chan

1st Respondent

Hui Tak-yick trading as United Company

2nd Respondent

Hing Kee Construction Co. Ltd.

3rd Respondent

Chow Chung-lun

1st Third Party

Chiu Chan

2nd Third Party

Procedural Posture

Employees' Compensation / Ruling on Application for Indemnity and Jurisdiction Under Section 24

  1. 1 Whether District Court has jurisdiction to hear indemnity claims under s24 where amounts exceed $60,000
  2. 2 Proper procedure once Court assumes jurisdiction for intervention and joinder under Rules 22-24
  3. 3 Whether it is too late to convert a third party into a respondent after sub-contractors settled with applicant but proceedings are stayed

Ratio Decidendi

The District Court has jurisdiction to entertain indemnity claims under section 24 of the Employees' Compensation Ordinance even where the claimed sums exceed the normal $60,000 jurisdictional limit; intervention and third party joinder under Rules 22-24 apply to s24 claims; the court may convert a third party into a respondent at any stage including after settlements if proceedings are stayed; indemnity accrues upon liability under s24(2) without requiring a judgment debt.

Court Disposition

Ruling: District Court has jurisdiction to entertain the indemnity claims under s24; court may convert/join the third party as respondent despite settlements which leave the applicant's proceedings stayed.

Orders

  • District Court has jurisdiction to hear indemnity claims under Employees' Compensation Ordinance s24 in the circumstances of this case
  • Third party may be converted/joined as a respondent under Rules 22-24 despite prior settlement between sub-contractors and applicant where proceedings as to the applicant are stayed