CHINLUCK PROPERTIES LTD v. CASIL CLEARING LTD

CHINLUCK PROPERTIES LTD v. CASIL CLEARING LTD

The court held that the defendant's strike out application failed because issues of causation, remoteness, mitigation and the effect of the event of default are matters for the damages assessment; those issues do not justify striking out the amended pleading or entering judgment for the defendant at this stage, and directions for the assessment were ordered.

Citation
CHINLUCK PROPERTIES LTD v. CASIL CLEARING LTD
Parties
Plaintiff (original); 1st Defendant (counterclaim): Chinluck Properties Limited; Defendant (original); Plaintiff (counterclaim): Casil Clearing Limited; 2nd Defendant (counterclaim): Cheng Zhen Shu
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 April 2005
Case Number
HCA11008/1997
Procedural Posture
Civil Contract (loan Agreement) / Post Liability Trial; Directions for Assessment of Damages
Outcome
Casil's summons to strike out paragraphs 27 and 28 dismissed; directions granted for assessment of damages; costs allocated as ordered.
Legal Topics
Breach of Contract, Damages, Remoteness, Loss of Chance, Strike Out Application, Discovery and Case Management Directions
Source Language
EN
Contract Civil Procedure Remedies Breach of Contract Damages Remoteness Loss of Chance Strike Out Application +1 more

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Parties

Chinluck Properties Limited

Plaintiff (original); 1st Defendant (counterclaim)

Casil Clearing Limited

Defendant (original); Plaintiff (counterclaim)

Cheng Zhen Shu

2nd Defendant (counterclaim)

Procedural Posture

Civil Contract (loan Agreement) / Post Liability Trial; Directions for Assessment of Damages

Legal Issues

  1. 1 Whether paragraphs 27 and 28 of the Re-amended Statement of Claim disclose a reasonable cause of action or are scandalous, frivolous or vexatious
  2. 2 Whether the event of default and Casil's right to call up the whole mortgage precludes Chinluck from recovering damages
  3. 3 Causation and remoteness of damage arising from failure to advance loan balance

Ratio Decidendi

The court held that the defendant's strike out application failed because issues of causation, remoteness, mitigation and the effect of the event of default are matters for the damages assessment; those issues do not justify striking out the amended pleading or entering judgment for the defendant at this stage, and directions for the assessment were ordered.

Court Disposition

Casil's summons to strike out paragraphs 27 and 28 dismissed; directions granted for assessment of damages; costs allocated as ordered.

Orders

  • Casil's summons to strike out paragraphs 27 and 28 dismissed
  • Assessment of damages to be heard by the trial judge