Melrose Clothing Co. Ltd. v. China Garment (Far East) Ltd.

Melrose Clothing Co. Ltd. v. China Garment (Far East) Ltd.

The court refused to extend the defences to a dishonoured cheque to include innocent misrepresentation absent clear authoritative support and real loss, but admitted fresh evidence relevant to a compromise agreement; the fresh evidence created a genuine triable issue as to settlement for two invoices and deductions for others, so the master's summary judgment was set aside and unconditional leave to defend the entire action was granted.

Citation
Melrose Clothing Co. Ltd. v. China Garment (Far East) Ltd.
Parties
Plaintiff (respondent): Melrose Clothing Company Limited; Defendant (appellant): China Garment (Far East) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 December 2000
Case Number
HCA6760/2000
Procedural Posture
Civil Action Dishonoured Cheque / Commercial Contract Dispute / Appeal to Deputy High Court Judge From Master's Summary Judgment (rehearing in Chambers)
Outcome
Appeal allowed; order of the learned master dated 27 September 2000 set aside; defendant granted unconditional leave to defend the entire action.
Legal Topics
Dishonoured Cheque, Summary Judgment, Misrepresentation, Compromise Agreement, Fresh Evidence, Leave to Defend, Set Off, Partial Failure of Consideration
Source Language
EN
Contract Commercial Law Bills of Exchange Civil Procedure Evidence Dishonoured Cheque Summary Judgment Misrepresentation +5 more

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Parties

Melrose Clothing Company Limited

Plaintiff (respondent)

China Garment (Far East) Limited

Defendant (appellant)

Procedural Posture

Civil Action Dishonoured Cheque / Commercial Contract Dispute / Appeal to Deputy High Court Judge From Master's Summary Judgment (rehearing in Chambers)

Legal Issues

  1. 1 Whether innocent misrepresentation can be a defence to summary judgment on a dishonoured cheque
  2. 2 Whether fresh evidence relating to a compromise agreement should be admitted on appeal
  3. 3 Whether the alleged compromise agreement discharged the defendant's liability on the cheque

Ratio Decidendi

The court refused to extend the defences to a dishonoured cheque to include innocent misrepresentation absent clear authoritative support and real loss, but admitted fresh evidence relevant to a compromise agreement; the fresh evidence created a genuine triable issue as to settlement for two invoices and deductions for others, so the master's summary judgment was set aside and unconditional leave to defend the entire action was granted.

Court Disposition

Appeal allowed; order of the learned master dated 27 September 2000 set aside; defendant granted unconditional leave to defend the entire action.

Orders

  • Set aside the master's order dated 27 September 2000
  • Defendant given unconditional leave to defend the entire action