WONG ANGELA t/a JMT CO. v. RAF FORWARDING (H.K.) LTD.

WONG ANGELA t/a JMT CO. v. RAF FORWARDING (H.K.) LTD.

The common law rule preventing set-off against freight extends to contracts of carriage by air; therefore the respondent's entitlement to freight is not subject to set-off or counterclaim by the appellant and summary judgment (except as to the amount covered by the dishonoured cheque) was properly upheld. The dishonoured cheque admitted liability for that part of the claim and no defence existed to the cheque amount.

Citation
WONG ANGELA t/a JMT CO. v. RAF FORWARDING (H.K.) LTD.
Parties
Plaintiff (hca5533)/defendant (hca2446): WONG ANGELA trading as JMT COMPANY; Plaintiff (hca2446)/defendant (hca5533): RAF FORWARDING (H.K.) LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 December 1998
Case Number
HCA5533/1998
Procedural Posture
Civil Appeal Against Summary Judgment in Freight Dispute / Decision on Appeal (summary Judgment Affirmed)
Outcome
Appeal dismissed
Legal Topics
Freight, Set Off, Airfreight, Summary Judgment, Dishonoured Cheque, Stay of Execution, Repudiatory Breach
Source Language
EN
Contract Commercial Law Carriage of Goods Civil Procedure Freight Set Off Airfreight Summary Judgment +3 more

Case Brief

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Parties

WONG ANGELA trading as JMT COMPANY

Plaintiff (hca5533)/defendant (hca2446)

RAF FORWARDING (H.K.) LIMITED

Plaintiff (hca2446)/defendant (hca5533)

Procedural Posture

Civil Appeal Against Summary Judgment in Freight Dispute / Decision on Appeal (summary Judgment Affirmed)

Legal Issues

  1. 1 Whether common law rule preventing set-off against freight applies to airfreight
  2. 2 Whether triable issues exist to justify leave to defend the freight claim (conditional or unconditional)
  3. 3 Whether the dishonoured cheque constituted a defence to part of the freight claim

Ratio Decidendi

The common law rule preventing set-off against freight extends to contracts of carriage by air; therefore the respondent's entitlement to freight is not subject to set-off or counterclaim by the appellant and summary judgment (except as to the amount covered by the dishonoured cheque) was properly upheld. The dishonoured cheque admitted liability for that part of the claim and no defence existed to the cheque amount.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Summary judgment affirmed for RAF Forwarding (H.K.) Limited in the sum of $569,344.10 plus interest