FALCON CONSTRUCTION ENGINEERING LTD v. KIRIN CIVIL ENGINEERING CONTRACTORS LTD

FALCON CONSTRUCTION ENGINEERING LTD v. KIRIN CIVIL ENGINEERING CONTRACTORS LTD

Falcon contracted to install H‑piles within a 75 mm tolerance and was liable when deviations were established; Kirin proved deviation and recoverable losses limited to direct and foreseeable costs (Maunsell design fee and assessed additional building costs) totalling HKD 760,000; Falcon was not liable for alleged delay because completion was within a reasonable time.

Citation
FALCON CONSTRUCTION ENGINEERING LTD v. KIRIN CIVIL ENGINEERING CONTRACTORS LTD
Parties
Plaintiff: Falcon Construction Engineering Limited; Defendant / Counterclaimant: Kirin Civil Engineering Contractors Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 November 2004
Case Number
HCCT11/2003
Procedural Posture
Construction and Arbitration Proceedings (subcontract Dispute) / Judgment (trial)
Outcome
Kirin's counterclaim allowed in part; Falcon's remaining claim dismissed; stay of execution lifted.
Legal Topics
Sub‑contracting, Pile Deviation, Site Setting Out and Survey, Extension of Time / Delay, Final Account / Settlement, Remoteness of Damages, Quantification of Loss
Source Language
EN
Construction Law Contract Law Civil Procedure Damages Law Sub‑contracting Pile Deviation Site Setting Out and Survey Extension of Time / Delay +3 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 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Falcon Construction Engineering Limited

Plaintiff

Kirin Civil Engineering Contractors Limited

Defendant / Counterclaimant

Procedural Posture

Construction and Arbitration Proceedings (subcontract Dispute) / Judgment (trial)

Legal Issues

  1. 1 Whether Falcon was liable for piles deviating beyond contractual tolerance
  2. 2 Whether Falcon was liable for 63 days delay and attendant damages
  3. 3 Whether the 5 October 2000 'Final Agreement' precluded claims for pile deviation or delay

Ratio Decidendi

Falcon contracted to install H‑piles within a 75 mm tolerance and was liable when deviations were established; Kirin proved deviation and recoverable losses limited to direct and foreseeable costs (Maunsell design fee and assessed additional building costs) totalling HKD 760,000; Falcon was not liable for alleged delay because completion was within a reasonable time.

Court Disposition

Kirin's counterclaim allowed in part; Falcon's remaining claim dismissed; stay of execution lifted.

Orders

  • Kirin awarded damages of HKD 760000 for pile deviation
  • Falcon's remaining claim dismissed and interim judgment of 19 February 2002 remains as to amount previously awarded