IBM CHINA/HONG KONG LTD v. SILVER TECH ELECTRONICS LTD

IBM CHINA/HONG KONG LTD v. SILVER TECH ELECTRONICS LTD

Although the defendant's defence was questionable and the non-delivery claim was raised very late, unexplained email exchanges by plaintiff's staff created sufficient doubt about delivery to justify granting conditional leave to defend; the condition imposed was that the defendant pay the claimed sum of HKD 101,055.29 into court within 21 days; costs awarded to plaintiff to be taxed if not agreed.

Citation
IBM CHINA/HONG KONG LTD v. SILVER TECH ELECTRONICS LTD
Parties
Plaintiff: IBM China/Hong Kong Limited; Defendant: Silver Tech Electronics Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
19 December 2011
Case Number
DCCJ3054/2011
Procedural Posture
Debt Recovery / Contract / Application to Set Aside Default Judgment (decision)
Outcome
Conditional leave to defend granted on condition of payment into court within 21 days; costs awarded to plaintiff
Legal Topics
Default Judgment, Setting Aside Judgment, Set Off, Contractual Clause Prohibiting Set Off, Late Payment Charges, Service and Extension of Time
Source Language
EN
Contract Civil Procedure Debt Recovery Commercial Law Default Judgment Setting Aside Judgment Set Off Contractual Clause Prohibiting Set Off +2 more

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Parties

IBM China/Hong Kong Limited

Plaintiff

Silver Tech Electronics Limited

Defendant

Procedural Posture

Debt Recovery / Contract / Application to Set Aside Default Judgment (decision)

Legal Issues

  1. 1 Whether the default judgment should be set aside
  2. 2 Whether the defendant has a real prospect of success on its alleged set-off claim for undelivered goods
  3. 3 Whether the plaintiff properly released payment to the supplier

Ratio Decidendi

Although the defendant's defence was questionable and the non-delivery claim was raised very late, unexplained email exchanges by plaintiff's staff created sufficient doubt about delivery to justify granting conditional leave to defend; the condition imposed was that the defendant pay the claimed sum of HKD 101,055.29 into court within 21 days; costs awarded to plaintiff to be taxed if not agreed.

Court Disposition

Conditional leave to defend granted on condition of payment into court within 21 days; costs awarded to plaintiff

Orders

  • Defendant to pay HKD 101,055.29 into court within 21 days
  • Costs of the application and of today to the plaintiff to be taxed if not agreed