FONGWANG DEVELOPMENT LTD v. SUNLINK ASSETS LTD

FONGWANG DEVELOPMENT LTD v. SUNLINK ASSETS LTD

The court found the defendant liable for the plaintiff's contracted expenditures supported by evidence and awarded $669,000 for those items; the court reduced recovery for Hong Kong storage before judgment to half because of the plaintiff's lack of diligence and absence of receipts (allowing $2,000/month for 13 months = $26,000), allowed storage thereafter at $2,000/month until sale, and awarded interest at half judgment rate from date of writ to judgment and full judgment rate thereafter; costs of assessment to plaintiff if not agreed to be taxed.

Citation
FONGWANG DEVELOPMENT LTD v. SUNLINK ASSETS LTD
Parties
Plaintiff: Fongwang Development Limited; Defendant: Sunlink Assets Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
5 November 2004
Case Number
DCPI870/2004
Procedural Posture
Personal Injuries Action No. 870 of 2004 (district Court) / Assessment of Damages Following Interlocutory Judgment in Default
Outcome
Judgment entered for plaintiff in default; damages assessed and awarded with reductions for mitigation failures
Legal Topics
Repudiation, Mitigation of Loss, Interest, Costs, Storage Charges, Default Judgment
Source Language
EN
Contract Damages Civil Procedure Repudiation Mitigation of Loss Interest Costs Storage Charges +1 more

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Parties

Fongwang Development Limited

Plaintiff

Sunlink Assets Limited

Defendant

Procedural Posture

Personal Injuries Action No. 870 of 2004 (district Court) / Assessment of Damages Following Interlocutory Judgment in Default

Legal Issues

  1. 1 Whether defendant repudiated the contract by failing to pay the 10% deposit
  2. 2 Whether the plaintiff's claimed expenditures are recoverable as damages
  3. 3 Whether the plaintiff failed in its duty to mitigate loss by delaying legal action and retaining the sample hammer

Ratio Decidendi

The court found the defendant liable for the plaintiff's contracted expenditures supported by evidence and awarded $669,000 for those items; the court reduced recovery for Hong Kong storage before judgment to half because of the plaintiff's lack of diligence and absence of receipts (allowing $2,000/month for 13 months = $26,000), allowed storage thereafter at $2,000/month until sale, and awarded interest at half judgment rate from date of writ to judgment and full judgment rate thereafter; costs of assessment to plaintiff if not agreed to be taxed.

Court Disposition

Judgment entered for plaintiff in default; damages assessed and awarded with reductions for mitigation failures

Orders

  • Plaintiff awarded $669,000 for expenditures incurred under the contract
  • Pre-judgment Hong Kong storage allowed at half the claimed amount up to date of judgment: $2,000 per month for 13 months = $26,000