HBL LTD v. VEAGROUP SRL

HBL LTD v. VEAGROUP SRL

The court found the Plaintiff breached the contract by supplying defective watches; those breaches caused the Defendant's loss. The Defendant was entitled to recover loss of profit and wasted expenditure, subject to reasonable deductions for mitigation and set-off against the unpaid invoice. The counterclaim was...

Source-derived case information.

Citation
HBL LTD v. VEAGROUP SRL
Parties
Plaintiff (seller): HBL Limited; Defendant (buyer, Counterclaimant): VEAGROUP SRL
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 March 1999
Case Number
HCCL127/1996
Procedural Posture
Commercial Contract Sale of Goods / Judgment
Outcome
Judgment for Defendant on counterclaim; Plaintiff liable for breach and damages; set-off applied against Plaintiff's unpaid invoice; net judgment for Defendant.
Legal Topics
Defective Goods, Breach of Contract, Loss of Profit, Wasted Expenditure, Mitigation, Set Off, Currency Conversion, Interest
Source Language
en
Contract Law Sale of Goods Commercial Law Damages International Trade Defective Goods Breach of Contract Loss of Profit +5 more

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Parties

HBL Limited

Plaintiff (seller)

VEAGROUP SRL

Defendant (buyer, Counterclaimant)

Procedural Posture

Commercial Contract Sale of Goods / Judgment

Legal Issues

  1. 1 Whether the watches were defective and whether the defects caused the Defendant's losses
  2. 2 Causation and remoteness of damage
  3. 3 Quantum of damages: loss of profit and wasted expenditure

Ratio Decidendi

The court found the Plaintiff breached the contract by supplying defective watches; those breaches caused the Defendant's loss. The Defendant was entitled to recover loss of profit and wasted expenditure, subject to reasonable deductions for mitigation and set-off against the unpaid invoice. The counterclaim was quantified, converted to USD and HKD, interest awarded, and judgment entered for the Defendant in the net amount ordered.

Court Disposition

Judgment for Defendant on counterclaim; Plaintiff liable for breach and damages; set-off applied against Plaintiff's unpaid invoice; net judgment for Defendant.

Orders

  • Judgment in favour of Defendant against Plaintiff for HK$1,025,687.08
  • Interest on the judgment sum at the judgment rate from date of judgment until payment