KAGA (H.K.) ELECTRONICS LTD v. SUN CUPID TECHNOLOGY (HK) LTD

KAGA (H.K.) ELECTRONICS LTD v. SUN CUPID TECHNOLOGY (HK) LTD

Default judgment was not set aside because the defendant provided an unacceptable explanation for default and the defence lacked reasonable prospects; the PO was a genuine, binding commercial contract with LLT materials appropriated in a deliverable state with the buyer's implied assent so that property passed to Sun Cupid under SOGO s20 and Kaga was entitled to sue for the price, justifying the default judgment for JPY12,500,000.

Citation
KAGA (H.K.) ELECTRONICS LTD v. SUN CUPID TECHNOLOGY (HK) LTD
Parties
Plaintiff: KAGA (H.K.) ELECTRONICS LIMITED; Defendant: SUN CUPID TECHNOLOGY (HK) LIMITED
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
30 January 2014
Case Number
DCCJ2088/2013
Procedural Posture
Civil Action (district Court) / Application to Set Aside Default Judgment (summons)
Outcome
Summons dismissed; Default Judgment dated 12 July 2013 for JPY12,500,000 upheld
Legal Topics
Default Judgment, Setting Aside Judgment, Future Goods, Passing of Property, Agency, Sham Contract, Costs
Source Language
EN
Sale of Goods Contract Civil Procedure Default Judgment Setting Aside Judgment Future Goods Passing of Property Agency +2 more

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Parties

KAGA (H.K.) ELECTRONICS LIMITED

Plaintiff

SUN CUPID TECHNOLOGY (HK) LIMITED

Defendant

Procedural Posture

Civil Action (district Court) / Application to Set Aside Default Judgment (summons)

Legal Issues

  1. 1 Whether the defendant has a satisfactory explanation for the default and whether the default judgment should be set aside
  2. 2 Whether Kaga acted as agent only or contracted in its own right with Sun Cupid
  3. 3 Whether the purchase order (PO) was a sham and unenforceable

Ratio Decidendi

Default judgment was not set aside because the defendant provided an unacceptable explanation for default and the defence lacked reasonable prospects; the PO was a genuine, binding commercial contract with LLT materials appropriated in a deliverable state with the buyer's implied assent so that property passed to Sun Cupid under SOGO s20 and Kaga was entitled to sue for the price, justifying the default judgment for JPY12,500,000.

Court Disposition

Summons dismissed; Default Judgment dated 12 July 2013 for JPY12,500,000 upheld

Orders

  • Summons dated 20 August 2013 to set aside the Default Judgment dismissed
  • Order nisi that Sun Cupid pay costs of and occasioned by the Summons to Kaga, to be taxed if not agreed, with certificate for counsel