CROWN HONOR LOGISTICS (HOLDINGS) LTD AND ANOTHER v. SHING KEE WAREHOUSE & DISTRIBUTION (HK) CO LTD AND ANOTHER

CROWN HONOR LOGISTICS (HOLDINGS) LTD AND ANOTHER v. SHING KEE WAREHOUSE & DISTRIBUTION (HK) CO LTD AND ANOTHER

The defendants failed to establish the agreement was void (illegality struck out, no evidence government re-entered and issue estoppel applied); the January notice did not defeat plaintiffs' claim because it gave only two months' notice and plaintiffs remain entitled to at least one month's license fee after deposit set-off; on balance of probabilities plaintiffs would recover a substantial sum and the Registrar's interim payment order for one month's license fee was correctly made; appeal dismissed and costs awarded to plaintiffs.

Citation
CROWN HONOR LOGISTICS (HOLDINGS) LTD AND ANOTHER v. SHING KEE WAREHOUSE & DISTRIBUTION (HK) CO LTD AND ANOTHER
Parties
1st Plaintiff: CROWN HONOR LOGISTICS (HOLDINGS) LIMITED; 2nd Plaintiff: CHAN CHI WAH; 1st Defendant: SHING KEE WAREHOUSE & DISTRIBUTION (HK) COMPANY LIMITED; 2nd Defendant: KWOK KAI YING ECKI
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 May 2011
Case Number
HCA26/2010
Procedural Posture
Civil Appeal Against Registrar's Interim Payment Order / Judgment on Appeal (decision Affirmed)
Outcome
Appeal dismissed; Registrar's interim payment decision affirmed
Legal Topics
Interim Payment, License Agreement, Termination Notice, Illegality, Set Off, Deposit, Contract Interpretation
Source Language
EN
Contract Property Civil Procedure Interim Payment License Agreement Termination Notice Illegality Set Off +2 more

Case Brief

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Parties

CROWN HONOR LOGISTICS (HOLDINGS) LIMITED

1st Plaintiff

CHAN CHI WAH

2nd Plaintiff

SHING KEE WAREHOUSE & DISTRIBUTION (HK) COMPANY LIMITED

1st Defendant

KWOK KAI YING ECKI

2nd Defendant

Procedural Posture

Civil Appeal Against Registrar's Interim Payment Order / Judgment on Appeal (decision Affirmed)

Legal Issues

  1. 1 Whether the license agreement was void for illegality/public policy
  2. 2 Whether the defendants gave valid notice of termination
  3. 3 Whether plaintiffs are entitled to interim payment of one month's license fee despite defenses and counterclaim

Ratio Decidendi

The defendants failed to establish the agreement was void (illegality struck out, no evidence government re-entered and issue estoppel applied); the January notice did not defeat plaintiffs' claim because it gave only two months' notice and plaintiffs remain entitled to at least one month's license fee after deposit set-off; on balance of probabilities plaintiffs would recover a substantial sum and the Registrar's interim payment order for one month's license fee was correctly made; appeal dismissed and costs awarded to plaintiffs.

Court Disposition

Appeal dismissed; Registrar's interim payment decision affirmed

Orders

  • Appeal dismissed
  • Interim payment of one month's license fees ordered in favour of the plaintiffs