Full Rich Engineering Co. Ltd. v. Chan Wai Leung and Another

Full Rich Engineering Co. Ltd. v. Chan Wai Leung and Another

Section 25 must be read as permitting the injured employee to pursue common law damages against a third party and permitting the employer to recover by joining the employee's action or by instituting a separate common law action; it does not authorize an employer to commence a separate employees compensation application against a third party to seek indemnity. Therefore the present application discloses no cause of action and must be struck out.

Citation
Full Rich Engineering Co. Ltd. v. Chan Wai Leung and Another
Parties
Applicant: Full Rich Engineering Company Limited; 1st Respondent: Chan Wai-leung; 2nd Respondent: Ip Wah-kui
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
10 December 2001
Case Number
DCEC786/2001
Procedural Posture
Employees Compensation / Ruling on Strike Out Application Under Order 18 Rule 19
Outcome
Application struck out for disclosing no cause of action; costs awarded to respondents.
Legal Topics
Employees Compensation Ordinance S25, Third Party Liability, Indemnity, Strike Out for No Cause of Action, Procedure for Third Party Proceedings, Employees Compensation (rules of Court) Rule 16
Source Language
EN

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Parties

Full Rich Engineering Company Limited

Applicant

Chan Wai-leung

1st Respondent

Ip Wah-kui

2nd Respondent

Procedural Posture

Employees Compensation / Ruling on Strike Out Application Under Order 18 Rule 19

  1. 1 Whether an employer can commence a separate employees compensation application against a third party to claim indemnity under section 25(1)(b)
  2. 2 Whether the present application discloses a cause of action or is frivolous, vexatious or an abuse of process
  3. 3 What is the proper procedural route for an employer to seek indemnity from a third party in the context of employees compensation litigation

Ratio Decidendi

Section 25 must be read as permitting the injured employee to pursue common law damages against a third party and permitting the employer to recover by joining the employee's action or by instituting a separate common law action; it does not authorize an employer to commence a separate employees compensation application against a third party to seek indemnity. Therefore the present application discloses no cause of action and must be struck out.

Court Disposition

Application struck out for disclosing no cause of action; costs awarded to respondents.

Orders

  • Application in DCEC 786/2001 struck out
  • Costs to respondents