CHINA OVERSEAS BUILDING CONSTRUCTION LTD v. TRUE GOLD INVESTMENTS LTD AND OTHERS

CHINA OVERSEAS BUILDING CONSTRUCTION LTD v. TRUE GOLD INVESTMENTS LTD AND OTHERS

The court held that the dishonoured cheque claim was not covered by the arbitration clause and judgment for that sum should be entered; the claim under the 2nd Supplemental Agreement against the 1st defendant was covered by the arbitration clause and must be stayed for arbitration; claims against the 2nd to 5th defendants and the claim under the Guarantee were not subject to arbitration and summary judgment should be entered against those defendants because no credible triable defences (including duress or set‑off) were established; guarantors are bound by the settlement admission per the Guarantee.

Citation
CHINA OVERSEAS BUILDING CONSTRUCTION LTD v. TRUE GOLD INVESTMENTS LTD AND OTHERS
Parties
Plaintiff: China Overseas Building Construction Ltd; 1st Defendant: True Gold Investments Ltd; 2nd Defendant: Gold-Face Holdings Ltd; 3rd Defendant: Gold-Face Finance Ltd; 4th Defendant: Tai Chi Wah; 5th Defendant: Tai Chin Wah
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 June 2004
Case Number
HCA2011/2003
Procedural Posture
Civil Contract / Judgment on Summary Judgment and Stay Applications
Outcome
Partial judgment for plaintiff with summary judgment entered against certain defendants and a limited stay for arbitration as to part of the claim against the 1st defendant
Legal Topics
Summary Judgment, Duress, Stay for Arbitration, Dishonoured Cheque, Guarantee and Indemnity, Arbitration Clause Interpretation, Interest on Judgment
Source Language
EN
Contract Arbitration Guarantee Civil Procedure Commercial Law Summary Judgment Duress Stay for Arbitration +4 more

Case Brief

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Parties

China Overseas Building Construction Ltd

Plaintiff

True Gold Investments Ltd

1st Defendant

Gold-Face Holdings Ltd

2nd Defendant

Gold-Face Finance Ltd

3rd Defendant

Tai Chi Wah

4th Defendant

Tai Chin Wah

5th Defendant

Procedural Posture

Civil Contract / Judgment on Summary Judgment and Stay Applications

Legal Issues

  1. 1 Whether the dishonoured cheque claim is covered by the arbitration clause
  2. 2 Whether the claim under the 2nd Supplemental Agreement against the 1st defendant is subject to arbitration
  3. 3 Whether the guarantors are bound by the settlement admission and liable under the Guarantee

Ratio Decidendi

The court held that the dishonoured cheque claim was not covered by the arbitration clause and judgment for that sum should be entered; the claim under the 2nd Supplemental Agreement against the 1st defendant was covered by the arbitration clause and must be stayed for arbitration; claims against the 2nd to 5th defendants and the claim under the Guarantee were not subject to arbitration and summary judgment should be entered against those defendants because no credible triable defences (including duress or set‑off) were established; guarantors are bound by the settlement admission per the Guarantee.

Court Disposition

Partial judgment for plaintiff with summary judgment entered against certain defendants and a limited stay for arbitration as to part of the claim against the 1st defendant

Orders

  • Judgment against the 1st defendant in the sum of $20,226,800 with interest at 1.75% per annum above HSBC prime from 30 April 2003 until judgment, thereafter at judgment rate until payment
  • Judgment against the 2nd, 3rd, 4th and 5th defendants in the sum of $50,644,791 with interest at 1.75% per annum above HSBC prime from 1 May 2003 until judgment, thereafter at judgment rate until payment