CHAN TUNG LOI AND ANOTHER v. WING HONG CONTRACTORS LTD AND OTHERS

CHAN TUNG LOI AND ANOTHER v. WING HONG CONTRACTORS LTD AND OTHERS

On the evidence and documents the plaintiffs failed to prove that Ko or TK Chan acted as agents of Wing Hong or had authority (actual or apparent) to contract for Wing Hong; the defence witnesses and documentary trail establishing Ko and Great Wall as subcontractors were accepted; therefore Wing Hong is not liable for the plaintiffs' claimed unpaid sums and the plaintiffs' claim against Wing Hong is dismissed with costs to Wing Hong.

Citation
CHAN TUNG LOI AND ANOTHER v. WING HONG CONTRACTORS LTD AND OTHERS
Parties
First Named Plaintiff (partner of Tung Yin Civil Engineering Company): Chan; Second Named Plaintiff (partner of Tung Yin Civil Engineering Company): Tsoi; Plaintiff (partnership Business): Tung Yin Civil Engineering Company; First Defendant (main Contractor): Wing Hong; Second Defendant (subcontractor/foreman): Ko; Third Defendant (partner of Great Wall Engineering Co., Subcontractor): TK Chan; Subcontractor (partner Entity): Great Wall Engineering Co.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 November 2004
Case Number
HCA1751/2002
Procedural Posture
Contract / Debt Claim Arising From Construction Subcontracts and Agency / Trial Judgment (court of First Instance)
Outcome
Plaintiffs' claim against the first defendant dismissed
Legal Topics
Actual Authority, Apparent Authority (holding Out), Subcontracting, Warranty of Authority, Creditor Claim for Unpaid Works, Costs Follow Event
Source Language
EN
Contract Law Agency Construction Law Civil Procedure Actual Authority Apparent Authority (holding Out) Subcontracting Warranty of Authority +2 more

Case Brief

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Parties

Chan

First Named Plaintiff (partner of Tung Yin Civil Engineering Company)

Tsoi

Second Named Plaintiff (partner of Tung Yin Civil Engineering Company)

Tung Yin Civil Engineering Company

Plaintiff (partnership Business)

Wing Hong

First Defendant (main Contractor)

Ko

Second Defendant (subcontractor/foreman)

TK Chan

Third Defendant (partner of Great Wall Engineering Co., Subcontractor)

Great Wall Engineering Co.

Subcontractor (partner Entity)

Procedural Posture

Contract / Debt Claim Arising From Construction Subcontracts and Agency / Trial Judgment (court of First Instance)

Legal Issues

  1. 1 Whether Ko and/or TK Chan were agents of Wing Hong with actual authority to contract on its behalf
  2. 2 Whether Ko and/or TK Chan had been held out by Wing Hong as having authority (apparent authority)
  3. 3 Whether Wing Hong is contractually liable to pay plaintiffs for works under the 1st and 2nd Quotations

Ratio Decidendi

On the evidence and documents the plaintiffs failed to prove that Ko or TK Chan acted as agents of Wing Hong or had authority (actual or apparent) to contract for Wing Hong; the defence witnesses and documentary trail establishing Ko and Great Wall as subcontractors were accepted; therefore Wing Hong is not liable for the plaintiffs' claimed unpaid sums and the plaintiffs' claim against Wing Hong is dismissed with costs to Wing Hong.

Court Disposition

Plaintiffs' claim against the first defendant dismissed

Orders

  • Plaintiffs to pay the first defendant's costs of the action, to be taxed if not agreed
  • Plaintiffs wholly discontinued claim against the second and third defendants on 5 May 2004 with no order as to costs