GERMAIN ELECTRONIC LTD v. LDB SALES CO LTD AND OTHERS

GERMAIN ELECTRONIC LTD v. LDB SALES CO LTD AND OTHERS

Seller entitled to damages equal to the balance of the contract price less specific savings because seller was not contractually required to delay manufacture, the buyer repudiated the contract preventing shipment, mitigation was limited on the facts, and specific deductions (packing US$600.03 and freight HK$3,120) were appropriate, resulting in award of HK$210,610.69.

Citation
GERMAIN ELECTRONIC LTD v. LDB SALES CO LTD AND OTHERS
Parties
Plaintiff: GERMAIN ELECTRONIC 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
22 December 2009
Case Number
DCCJ3336/2007
Procedural Posture
Breach of Contract (sale of Goods) / Assessment of Damages (post Judgment)
Outcome
Judgment for Plaintiff; LDB liable for damages, interest and costs.
Legal Topics
Breach of Contract, Damages Assessment, Mitigation of Loss, FOB Shipment Obligations, Measure of Damages
Source Language
EN
Contract Law Sale of Goods Commercial Law Civil Procedure (costs) Breach of Contract Damages Assessment Mitigation of Loss FOB Shipment Obligations +1 more

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Parties

GERMAIN ELECTRONIC 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

Breach of Contract (sale of Goods) / Assessment of Damages (post Judgment)

Legal Issues

  1. 1 Whether plaintiff entitled to claim balance of contract price as damages
  2. 2 Whether plaintiff was obliged to withhold manufacture pending buyer/customer confirmation
  3. 3 Extent of mitigation required and what savings should be deducted

Ratio Decidendi

Seller entitled to damages equal to the balance of the contract price less specific savings because seller was not contractually required to delay manufacture, the buyer repudiated the contract preventing shipment, mitigation was limited on the facts, and specific deductions (packing US$600.03 and freight HK$3,120) were appropriate, resulting in award of HK$210,610.69.

Court Disposition

Judgment for Plaintiff; LDB liable for damages, interest and costs.

Orders

  • LDB shall pay Germain damages in the sum of HK$210,610.69
  • Interest at the judgment rate from date of writ until full payment on the damages awarded