LEE CHEUK SHUN v. TRADITION (ASIA) LTD

LEE CHEUK SHUN v. TRADITION (ASIA) LTD

Judge found plaintiff's evidence inconsistent and not credible, accepted defendant witnesses and documentary record, rejected existence of the alleged representation that defendant would ensure US$30m unconditionally, held Clause 14.1 barred incorporation of prior representations or collateral terms into the written employment agreement, found no breach by defendant, held plaintiff wrongfully terminated fixed-term contract but defendant proved no consequential loss and was entitled only to nominal damages of HK$100; costs order nisi for defendant's defence costs.

Citation
LEE CHEUK SHUN v. TRADITION (ASIA) LTD
Parties
Plaintiff/defendant (consolidated): Lee Cheuk Shun; Defendant/plaintiff (consolidated): Tradition (Asia) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 December 2008
Case Number
HCA2808/2006
Procedural Posture
Civil: Employment and Tort (negligent Misrepresentation, Breach of Contract) / Judgment at Trial (court of First Instance)
Outcome
Plaintiff's claim dismissed in its entirety; defendant's counterclaim succeeds in part — nominal damages awarded; costs order nisi in favour of defendant for defence costs; no order for costs of counterclaim.
Legal Topics
Negligent Misrepresentation, Entire Agreement Clause, Collateral Contract, Implied Terms, Wrongful Termination, Calculation of Damages Under Employment Ordinance
Source Language
EN
Employment Law Tort Contract Law Corporate/financial Services Regulation Negligent Misrepresentation Entire Agreement Clause Collateral Contract Implied Terms +2 more

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Parties

Lee Cheuk Shun

Plaintiff/defendant (consolidated)

Tradition (Asia) Limited

Defendant/plaintiff (consolidated)

Procedural Posture

Civil: Employment and Tort (negligent Misrepresentation, Breach of Contract) / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 Whether defendant made negligent misrepresentations inducing plaintiff to resign from previous employment
  2. 2 Whether pre-contractual representations were incorporated into the employment contract or gave rise to a collateral contract
  3. 3 Whether Clause 14.1 (entire agreement) precluded reliance on prior representations or implied terms

Ratio Decidendi

Judge found plaintiff's evidence inconsistent and not credible, accepted defendant witnesses and documentary record, rejected existence of the alleged representation that defendant would ensure US$30m unconditionally, held Clause 14.1 barred incorporation of prior representations or collateral terms into the written employment agreement, found no breach by defendant, held plaintiff wrongfully terminated fixed-term contract but defendant proved no consequential loss and was entitled only to nominal damages of HK$100; costs order nisi for defendant's defence costs.

Court Disposition

Plaintiff's claim dismissed in its entirety; defendant's counterclaim succeeds in part — nominal damages awarded; costs order nisi in favour of defendant for defence costs; no order for costs of counterclaim.

Orders

  • Plaintiff's claim dismissed
  • Nominal damages of HK$100 awarded to the defendant on its counterclaim