MEDIATEK INCORPORATION AND ANOTHER v. MORRISON EXPRESS CORP. LTD AND OTHERS

MEDIATEK INCORPORATION AND ANOTHER v. MORRISON EXPRESS CORP. LTD AND OTHERS

The court held that the 2nd Defendant had not proven it was acting as agent of the Plaintiffs and the available evidence (including the timing of appointments and the Letter of Indemnity) indicated D2 acted as principal when engaging D3; accordingly D2 is vicariously liable for D3's negligence. Liability is established; quantum remains to be assessed and issues as to the applicability and reasonableness of any limitation clauses are triable.

Citation
MEDIATEK INCORPORATION AND ANOTHER v. MORRISON EXPRESS CORP. LTD AND OTHERS
Parties
1st Plaintiff: MEDIATEK INCORPORATION; 2nd Plaintiff: ULTRA SOURCE TECHNOLOGY CORP.; 1st Defendant: MORRISON EXPRESS CORP. LIMITED; 2nd Defendant: MORRISON EXPRESS COMPANY LTD.; 3rd Defendant: POWER UP LOGISTICS LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 July 2011
Case Number
HCAJ153/2009
Procedural Posture
Admiralty Action / Judgment on Liability; Damages to Be Assessed; Unconditional Leave to Defend on Quantum
Outcome
Judgment for Plaintiffs on liability; damages to be assessed; unconditional leave to defend on quantum granted.
Legal Topics
Vicarious Liability, Agency/principal Agent, Negligence, Limitation/exclusion Clauses, Letter of Indemnity, HAFFA Terms, Quotation Terms, Course of Dealing
Source Language
EN
Admiralty Contract Tort Agency Carriage of Goods Limitation of Liability Indemnity Vicarious Liability +7 more

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Parties

MEDIATEK INCORPORATION

1st Plaintiff

ULTRA SOURCE TECHNOLOGY CORP.

2nd Plaintiff

MORRISON EXPRESS CORP. LIMITED

1st Defendant

MORRISON EXPRESS COMPANY LTD.

2nd Defendant

POWER UP LOGISTICS LIMITED

3rd Defendant

Procedural Posture

Admiralty Action / Judgment on Liability; Damages to Be Assessed; Unconditional Leave to Defend on Quantum

Legal Issues

  1. 1 Whether the 2nd Defendant acted as principal or agent in appointing the 3rd Defendant
  2. 2 Whether the 2nd Defendant is vicariously liable for the 3rd Defendant's negligence
  3. 3 Whether HAFFA terms or Quotation Terms apply to limit liability

Ratio Decidendi

The court held that the 2nd Defendant had not proven it was acting as agent of the Plaintiffs and the available evidence (including the timing of appointments and the Letter of Indemnity) indicated D2 acted as principal when engaging D3; accordingly D2 is vicariously liable for D3's negligence. Liability is established; quantum remains to be assessed and issues as to the applicability and reasonableness of any limitation clauses are triable.

Court Disposition

Judgment for Plaintiffs on liability; damages to be assessed; unconditional leave to defend on quantum granted.

Orders

  • There will be judgment on liability with damages to be assessed.
  • On quantum, there will be unconditional leave to defend.