GERMAIN ELECTRIC LTD v. LDB SALES CO LTD AND OTHERS

GERMAIN ELECTRIC LTD v. LDB SALES CO LTD AND OTHERS

The counterclaims were struck out because they were statute-barred: the causes of action accrued by 19 December 2001 and the defendants did not file their counterclaims until 21 December 2007, exceeding the six-year limitation and constituting an improper use of the court\u2019s machinery; accordingly the court ordered the counterclaims struck out and awarded costs nisi.

Citation
GERMAIN ELECTRIC LTD v. LDB SALES CO LTD AND OTHERS
Parties
Plaintiff: Germain Electric Limited; 1st Defendant: LDB Sales Company Limited; 2nd Defendant: Robert Bruce Chaiko; 3rd Defendant: Liu Yuen Kwan also known as Peggy Liu
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
24 April 2008
Case Number
DCCJ3336/2007
Procedural Posture
Civil Contract/misrepresentation / Application to Strike Out Counterclaims Under Order 18 Rule 19
Outcome
Counterclaims of all three defendants struck out
Legal Topics
Misrepresentation, Counterclaim, Statute Bar, Abuse of Process, Striking Out, Costs
Source Language
EN

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Parties

Germain Electric Limited

Plaintiff

LDB Sales Company Limited

1st Defendant

Robert Bruce Chaiko

2nd Defendant

Liu Yuen Kwan also known as Peggy Liu

3rd Defendant

Procedural Posture

Civil Contract/misrepresentation / Application to Strike Out Counterclaims Under Order 18 Rule 19

  1. 1 Whether the defendants\u2019 counterclaims are frivolous or an abuse of process
  2. 2 Whether the counterclaims are time-barred under the Limitation Ordinance s.4(1)
  3. 3 Whether the court should strike out counterclaims under Order 18 r.19

Ratio Decidendi

The counterclaims were struck out because they were statute-barred: the causes of action accrued by 19 December 2001 and the defendants did not file their counterclaims until 21 December 2007, exceeding the six-year limitation and constituting an improper use of the court\u2019s machinery; accordingly the court ordered the counterclaims struck out and awarded costs nisi.

Court Disposition

Counterclaims of all three defendants struck out

Orders

  • The counterclaims of the three Defendants are struck out
  • Order nisi that the Defendants do bear the costs of this action, to be taxed if not agreed, with certificate for Counsel; order to be made absolute in 14 days