UNION DATA INDUSTRIES v. YOOK TONG ELECTRIC CO LTD

UNION DATA INDUSTRIES v. YOOK TONG ELECTRIC CO LTD

The court found on the balance of probabilities that the bulk of FBT-218 and FBT-136 supplied to Union Data were non-compliant with EN55015; Universal breached its obligations and owed a duty of care to Union Data which was breached, causing recoverable loss; Yook Tong was also in breach for supplying non-compliant items to Union Data but was entitled to certain set-offs; damages and set-offs were determined by reference to proved quantities and values.

Citation
UNION DATA INDUSTRIES v. YOOK TONG ELECTRIC CO LTD
Parties
Plaintiff (dccj 4948/2003); 2nd Defendant (dccj 1041/2004): Universal Lighting Asia Limited; Defendant (dccj 4948/2003); 1st Defendant (dccj 1041/2004): Yook Tong Electric Company Limited; Plaintiff (dccj 1041/2004): Union Data Industries Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
10 August 2006
Case Number
DCCJ1041/2004
Procedural Posture
Civil Contractual and Negligence Claims Arising From Supply of Goods / Judgment (reasons for Decision Handed Down 10 August 2006)
Outcome
DCCJ 4948/2003: Universal succeeds in its claim; Yook Tong succeeds in counterclaim; net payment ordered. DCCJ 1041/2004: Union Data succeeds against Yook Tong and Universal on limited heads; Yook Tong succeeds on counterclaim against Union Data; costs allocated as described.
Legal Topics
Breach of Contract, Negligence (duty, Reliance, Causation), Product Compliance (en55015), Measure of Damages, Mitigation of Loss
Source Language
EN
Contract Law Tort Negligence Commercial Law Product Compliance/regulatory Law Damages Law Breach of Contract Negligence (duty, Reliance, Causation) Product Compliance (en55015) +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Universal Lighting Asia Limited

Plaintiff (dccj 4948/2003); 2nd Defendant (dccj 1041/2004)

Yook Tong Electric Company Limited

Defendant (dccj 4948/2003); 1st Defendant (dccj 1041/2004)

Union Data Industries Limited

Plaintiff (dccj 1041/2004)

Procedural Posture

Civil Contractual and Negligence Claims Arising From Supply of Goods / Judgment (reasons for Decision Handed Down 10 August 2006)

Legal Issues

  1. 1 What were the contractual terms between Universal and Yook Tong and between Yook Tong and Union Data regarding EN55015 compliance
  2. 2 Whether Universal and/or Yook Tong breached contractual obligations to supply compliant ballasts
  3. 3 Whether Universal owed Union Data a duty of care and was negligent in supplying non-compliant goods

Ratio Decidendi

The court found on the balance of probabilities that the bulk of FBT-218 and FBT-136 supplied to Union Data were non-compliant with EN55015; Universal breached its obligations and owed a duty of care to Union Data which was breached, causing recoverable loss; Yook Tong was also in breach for supplying non-compliant items to Union Data but was entitled to certain set-offs; damages and set-offs were determined by reference to proved quantities and values.

Court Disposition

DCCJ 4948/2003: Universal succeeds in its claim; Yook Tong succeeds in counterclaim; net payment ordered. DCCJ 1041/2004: Union Data succeeds against Yook Tong and Universal on limited heads; Yook Tong succeeds on counterclaim against Union Data; costs allocated as described.

Orders

  • DCCJ 4948/2003 - Yook Tong shall pay Universal the net sum of HK$355,813.12 (HK$374,614.20 less value of HK$18,801.08 for 508 FBT-218 pieces retained)
  • Yook Tong may deduct value of compliant/non-compliant stock as set-off against amount owed to Universal