BRIGHTFORD LIMITED v. HUNG BIU ENGINEERING AND OTHERS

BRIGHTFORD LIMITED v. HUNG BIU ENGINEERING AND OTHERS

The court held there was no condition precedent in the subcontract preventing liability; Payment Certificate No.006 had been paid before service and was not attachable; sums paid by the garnishee to the Labour Department under the Employment Ordinance were for employees and could not be claimed by the judgment...

Source-derived case information.

Citation
BRIGHTFORD LIMITED v. HUNG BIU ENGINEERING AND OTHERS
Parties
Plaintiff; Judgment Creditor; Appellant: Brightford Limited; 1st Defendant; 1st Judgment Debtor: Hung Biu Engineering Company Limited; 2nd Defendant: Law Chi Yip Construction Company Limited; 1st Garnishee; Respondent: China Harbour Engineering Company; 2nd Garnishee: Zhen Hua Engineering Co. Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 August 1994
Case Number
HCA6505/1993
Procedural Posture
Garnishee Proceedings (civil) / Appeal to High Court From Masters' Decisions; Judgment on Appeal in Chambers
Outcome
Appeal allowed in part and dismissed in part; order setting aside garnishee order absolute upheld; costs allocation varied.
Legal Topics
Garnishee Order, Set Off, Condition Precedent, Statutory Wages Liability, Costs
Source Language
en
Civil Procedure Contract Law Employment Law Equity Garnishee Order Set Off Condition Precedent Statutory Wages Liability +1 more

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Parties

Brightford Limited

Plaintiff; Judgment Creditor; Appellant

Hung Biu Engineering Company Limited

1st Defendant; 1st Judgment Debtor

Law Chi Yip Construction Company Limited

2nd Defendant

China Harbour Engineering Company

1st Garnishee; Respondent

Zhen Hua Engineering Co. Ltd.

2nd Garnishee

Procedural Posture

Garnishee Proceedings (civil) / Appeal to High Court From Masters' Decisions; Judgment on Appeal in Chambers

Legal Issues

  1. 1 Whether a debt was due and attached at time of service of garnishee order nisi
  2. 2 Whether subcontract contained a condition precedent delaying the garnishee's liability to pay
  3. 3 Whether sums paid by the garnishee to the Labour Department under the Employment Ordinance were available to the judgment creditor

Ratio Decidendi

The court held there was no condition precedent in the subcontract preventing liability; Payment Certificate No.006 had been paid before service and was not attachable; sums paid by the garnishee to the Labour Department under the Employment Ordinance were for employees and could not be claimed by the judgment creditor; the garnishee was entitled to set off liquidated damages that accrued before service of the order nisi; consequently the garnishee order absolute was properly set aside and the 1st garnishee ordered to pay the costs of setting aside the order below; the appeal was allowed only to that extent and otherwise dismissed with each party to bear its own costs of the appeal (costs...

Court Disposition

Appeal allowed in part and dismissed in part; order setting aside garnishee order absolute upheld; costs allocation varied.

Orders

  • The order of costs in the court below is set aside to the extent indicated; 1st garnishee to pay the costs of the judgment creditor and the Official Receiver in the court below in setting aside the garnishee order absolute
  • Garnishee order absolute previously made is set aside (order upheld as set aside by Master Beeson)