CHINA NATIONAL ARTS AND CRAFTS IMPORT & EXPORT CORPORATION ZHEJIANG BRANCH AND ANOTHER v. SEALAND SERVICE INC. AND OTHERS

CHINA NATIONAL ARTS AND CRAFTS IMPORT & EXPORT CORPORATION ZHEJIANG BRANCH AND ANOTHER v. SEALAND SERVICE INC. AND OTHERS

The application to withdraw the admission was refused because, on the balance of interests, the Defendant's late change of case was insufficiently explained and would severely prejudice the Plaintiffs in a way not compensable by costs owing to the passage of time and loss of documentary and witness evidence; accordingly the court declined to permit the proposed amendments withdrawing the admission as to the contract of carriage evidenced by Bill of Lading CT319.

Citation
CHINA NATIONAL ARTS AND CRAFTS IMPORT & EXPORT CORPORATION ZHEJIANG BRANCH AND ANOTHER v. SEALAND SERVICE INC. AND OTHERS
Parties
1st Plaintiff: China National Arts and Crafts Import & Export Corporation Zhejiang Branch; 2nd Plaintiff: Jacob Ash Co. Inc.; 1st Defendant: Sealand Service Inc.; 2nd Defendant: Hoi Kong Container Services Co. Ltd.; 3rd Defendant: Freight-Trans International Co. Ltd.; 1st Third Party: Freight-Trans International Co. Ltd.; 2nd Third Party: Hoi Kong Container Services Co. Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 October 1999
Case Number
HCCL90/1990
Procedural Posture
Commercial List Contract of Carriage (bill of Lading) / Interlocutory Application for Leave to Amend Points of Defence (withdrawal of Admission)
Outcome
Application dismissed
Legal Topics
Amendment of Pleadings, Withdrawal of Admission, Prejudice From Delay, Authority to Issue Bill of Lading, Summary Judgment Procedure
Source Language
EN
Commercial Law Admiralty and Maritime Law Civil Procedure Amendment of Pleadings Withdrawal of Admission Prejudice From Delay Authority to Issue Bill of Lading Summary Judgment Procedure

Case Brief

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Parties

China National Arts and Crafts Import & Export Corporation Zhejiang Branch

1st Plaintiff

Jacob Ash Co. Inc.

2nd Plaintiff

Sealand Service Inc.

1st Defendant

Hoi Kong Container Services Co. Ltd.

2nd Defendant

Freight-Trans International Co. Ltd.

3rd Defendant

Freight-Trans International Co. Ltd.

1st Third Party

Hoi Kong Container Services Co. Ltd.

2nd Third Party

Procedural Posture

Commercial List Contract of Carriage (bill of Lading) / Interlocutory Application for Leave to Amend Points of Defence (withdrawal of Admission)

Legal Issues

  1. 1 Whether the 1st Defendant should be permitted to withdraw an admission in its Defence
  2. 2 Whether the Plaintiffs would suffer prejudice not compensable in costs if the amendment were allowed
  3. 3 Whether the Defendant's explanation for the late change of stance is credible and amounts to good reason to resile from the admission

Ratio Decidendi

The application to withdraw the admission was refused because, on the balance of interests, the Defendant's late change of case was insufficiently explained and would severely prejudice the Plaintiffs in a way not compensable by costs owing to the passage of time and loss of documentary and witness evidence; accordingly the court declined to permit the proposed amendments withdrawing the admission as to the contract of carriage evidenced by Bill of Lading CT319.

Court Disposition

Application dismissed

Orders

  • The 1st Defendant's summons dated 21 June 1999 for leave to amend the Points of Defence is dismissed
  • Costs of and occasioned by the application to the Plaintiffs, to be taxed if not agreed