COLLECTIONS INTERIOR LTD v. FLEXIWALL ENGINEERING CO LTD

COLLECTIONS INTERIOR LTD v. FLEXIWALL ENGINEERING CO LTD

The court determined as a preliminary issue that the agreement of 23 September 1994 is binding on the plaintiffs and the defendant, leaving only the quantum between the plaintiffs individually and the defendant. Because the defendant advanced totally without merit defences to the binding nature of that agreement and thereby caused unnecessary expense, the defendant must pay the plaintiffs' costs of the preliminary issue on an indemnity basis to be taxed and paid forthwith. Separately, Flexiwall must bear the wasted costs of the abortive attempt to try the preliminary issue in CON 64 caused by its amendment of pleadings.

Citation
COLLECTIONS INTERIOR LTD v. FLEXIWALL ENGINEERING CO LTD
Parties
First Plaintiff (con 25): LAI CHI HING trading as KWONG YUEN DECORATION COMPANY; Second Plaintiff (con 25): CHUN YIP ENGINEERING COMPANY (A Firm); Third Plaintiff (con 25): GROUP POWER ENGINEERING LIMITED; Fourth Plaintiff (con 25): TSO TAK MING, DANNY trading as UNITED GROUP ENGINEERING COMPANY; Fifth Plaintiff (con 25): LEUNG HUNG KUN trading as HUNG TAT ENGINEERING COMPANY; Sixth Plaintiff (con 25): LUEN HOP CONSTRUCTION COMPANY (A Firm); Seventh Plaintiff (con 25): HO CHI WAH trading as NGATAO DECORATION ENGINEERING COMPANY; Defendant (con 25; Involved in CON 64): COLLECTIONS INTERIOR LIMITED; Defendant (con 64): FLEXIWALL ENGINEERING COMPANY LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 December 1997
Case Number
HCCT64/1996
Procedural Posture
Civil Contract Dispute (preliminary Issue on Existence and Binding Nature of Agreement) / Decision on Preliminary Issue and Costs Following Trial of Preliminary Issue; Deconsolidation of Actions
Outcome
Preliminary issue determined in favour of plaintiffs: agreement of 23 September 1994 held binding; costs allocated as set out.
Legal Topics
Preliminary Issue, Binding Agreement, Amendment of Pleadings, Wasted Costs, Indemnity Costs, Deconsolidation
Source Language
EN
Contract Civil Procedure Costs Preliminary Issue Binding Agreement Amendment of Pleadings Wasted Costs Indemnity Costs +1 more

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Parties

LAI CHI HING trading as KWONG YUEN DECORATION COMPANY

First Plaintiff (con 25)

CHUN YIP ENGINEERING COMPANY (A Firm)

Second Plaintiff (con 25)

GROUP POWER ENGINEERING LIMITED

Third Plaintiff (con 25)

TSO TAK MING, DANNY trading as UNITED GROUP ENGINEERING COMPANY

Fourth Plaintiff (con 25)

LEUNG HUNG KUN trading as HUNG TAT ENGINEERING COMPANY

Fifth Plaintiff (con 25)

LUEN HOP CONSTRUCTION COMPANY (A Firm)

Sixth Plaintiff (con 25)

HO CHI WAH trading as NGATAO DECORATION ENGINEERING COMPANY

Seventh Plaintiff (con 25)

COLLECTIONS INTERIOR LIMITED

Defendant (con 25; Involved in CON 64)

FLEXIWALL ENGINEERING COMPANY LIMITED

Defendant (con 64)

Procedural Posture

Civil Contract Dispute (preliminary Issue on Existence and Binding Nature of Agreement) / Decision on Preliminary Issue and Costs Following Trial of Preliminary Issue; Deconsolidation of Actions

Legal Issues

  1. 1 Whether the alleged agreement dated 23 September 1994 is binding between the parties
  2. 2 Whether the amendment to pleadings by Flexiwall caused wasted costs and who should bear them
  3. 3 Appropriate basis for costs of the preliminary issue (indemnity vs in the cause)

Ratio Decidendi

The court determined as a preliminary issue that the agreement of 23 September 1994 is binding on the plaintiffs and the defendant, leaving only the quantum between the plaintiffs individually and the defendant. Because the defendant advanced totally without merit defences to the binding nature of that agreement and thereby caused unnecessary expense, the defendant must pay the plaintiffs' costs of the preliminary issue on an indemnity basis to be taxed and paid forthwith. Separately, Flexiwall must bear the wasted costs of the abortive attempt to try the preliminary issue in CON 64 caused by its amendment of pleadings.

Court Disposition

Preliminary issue determined in favour of plaintiffs: agreement of 23 September 1994 held binding; costs allocated as set out.

Orders

  • It is determined as a preliminary issue that the agreement of 23 September 1994 is binding on the plaintiffs and the defendant and that the only matters outstanding between the plaintiffs, individually, and the defendant is the amount, if any, due between them.
  • The defendant (Collections Interior Limited) is to pay the costs of the plaintiffs in respect of the preliminary issue on an indemnity basis, to be taxed and paid forthwith.