AQUA-LEISURE INDUSTRIES INC. AND ANOTHER v. CHAMP FAIR MANUFACTORY CO. LTD.

Parties

Procedural Posture

Consolidated Commercial Action for Breach of Contract, Injunctions and Damages / Judgment on Liability for Defective Goods, Assessment of Damages and Counterclaims (final Judgment)

Legal Issues

1. 1 Whether Champ Fair supplied defective goods to the plaintiffs
2. 2 Whether plaintiffs are entitled to damages for defective goods and the correct measure of those damages
3. 3 Whether parts of the plaintiffs' claims are time-barred and effect of limitation on available relief

Ratio Decidendi

On the balance of probabilities the court found Champ Fair supplied defective goods in the 1991 and 1992 seasons causing quantifiable losses; Champ Fair was entitled to judgment on its counterclaim for unpaid invoices of HK$1,403,474.30 but the plaintiffs were entitled to set-off for defective goods and associated costs of US$79,912.31 (1991) and US$129,192.97 (1992), resulting in a final balance in favour of the plaintiffs; 1991 claims could be relied upon as set-off despite limitation; interest ordered at prime rate plus 1% on the final balance from the date of the writ to judgment; costs awarded to the plaintiffs (nisi) to be taxed if not agreed.

Court Disposition

Judgment entered: defendant (Champ Fair) entitled to HK$1,403,474.30 on counterclaim but plaintiffs entitled to set-off for defective goods (US$79,912.31 for 1991 and US$129,192.97 for 1992) resulting in a net judgment in plaintiffs' favour; costs to plaintiffs; interest at prime+1% on final balance from date of...

Orders

• Judgment for Champ Fair on its counterclaim for unpaid invoices in the sum of HK$1,403,474.30
• Set-off allowed to plaintiffs: US$79,912.31 (1991 defective goods and associated costs) against the counterclaim