CHEUNG SIU HO formerly t/a HANG LEE ENGINEERING CO v. PUI HING CONSTRUCTION CO LTD

CHEUNG SIU HO formerly t/a HANG LEE ENGINEERING CO v. PUI HING CONSTRUCTION CO LTD

The court found the Written Agreement (including the clause permitting deduction in special circumstances) governed the parties' liabilities; payments made by the principal contractor or insurer were nonetheless payments of the defendant's contractual funds and thus deductible under the Written Term; accordingly the defendant lawfully deducted the sum and the plaintiff's claim failed and was dismissed.

Citation
CHEUNG SIU HO formerly t/a HANG LEE ENGINEERING CO v. PUI HING CONSTRUCTION CO LTD
Parties
Plaintiff: CSH; Defendant: Defendant; Principal Contractor: Paul Y Construction Company Limited; Insurer: HIH Insurance (Asia) Ltd; Injured Employee/respondent in EC Action: Lam Chong Man
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
10 July 2013
Case Number
DCCJ2198/2011
Procedural Posture
Contract Claim (sub Subcontract/deduction Dispute) / Trial / Judgment at First Instance
Outcome
Plaintiff's claim dismissed
Legal Topics
Subcontractor Liability, Deduction of Remuneration/contra Charge, Employees Compensation Payments, Limitation Period and Concealment, Completion/final Account
Source Language
EN
Contract Law Construction Law Employment Law (workers' Compensation) Limitation Law Restitution Subcontractor Liability Deduction of Remuneration/contra Charge Employees Compensation Payments +2 more

Case Brief

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Parties

CSH

Plaintiff

Defendant

Defendant

Paul Y Construction Company Limited

Principal Contractor

HIH Insurance (Asia) Ltd

Insurer

Lam Chong Man

Injured Employee/respondent in EC Action

Procedural Posture

Contract Claim (sub Subcontract/deduction Dispute) / Trial / Judgment at First Instance

Legal Issues

  1. 1 Who was liable under the sub-subcontract to pay the employees compensation award?
  2. 2 If plaintiff liable, was defendant entitled to deduct the sum from plaintiff's remuneration under the sub-subcontract?
  3. 3 If not liable or deduction wrongful, whether claim barred by the Completion Agreement or by limitation/concealment rules?

Ratio Decidendi

The court found the Written Agreement (including the clause permitting deduction in special circumstances) governed the parties' liabilities; payments made by the principal contractor or insurer were nonetheless payments of the defendant's contractual funds and thus deductible under the Written Term; accordingly the defendant lawfully deducted the sum and the plaintiff's claim failed and was dismissed.

Court Disposition

Plaintiff's claim dismissed

Orders

  • Costs order nisi: plaintiff to pay defendant's costs of the action (including previously reserved costs) with counsel certificate for trial, to be taxed if not agreed
  • Costs order nisi to become absolute after 14 days unless varied within that period; plaintiff's own costs to be taxed in accordance with the Legal Aid Regulations