LAM KIN v. SUNARTS (HOLDINGS) ENGINEERING LTD

LAM KIN v. SUNARTS (HOLDINGS) ENGINEERING LTD

Oral evidence purporting to make the cheques conditional is inadmissible under the parol evidence rule for negotiable instruments and, in any event, the defendant's account of subsequent agreements is not credible; therefore there is no triable issue and summary judgment must be entered for the plaintiff for $195,000 plus interest and costs.

Citation
LAM KIN v. SUNARTS (HOLDINGS) ENGINEERING LTD
Parties
Plaintiff: Lam Kin; Defendant: SUNARTS (HOLDINGS) ENGINEERING LTD.
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
29 May 2006
Case Number
DCCJ3567/2005
Procedural Posture
Civil Summary Judgment Application / Summary Judgment Hearing and Judgment Delivered
Outcome
Summary judgment entered for Plaintiff against Defendant
Legal Topics
Summary Judgment, Cheque Dishonour, Parol Evidence Rule, Admissibility of Oral Evidence, Set Off
Source Language
EN
Contract Negotiable Instruments Civil Procedure Evidence Set Off/counterclaim Summary Judgment Cheque Dishonour Parol Evidence Rule +2 more

Case Brief

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Parties

Lam Kin

Plaintiff

SUNARTS (HOLDINGS) ENGINEERING LTD.

Defendant

Procedural Posture

Civil Summary Judgment Application / Summary Judgment Hearing and Judgment Delivered

Legal Issues

  1. 1 Whether oral agreements can vary the unconditional nature of cheques
  2. 2 Whether the defendant has raised a triable issue or credible defence to defeat summary judgment
  3. 3 Whether a counterclaim or set-off based on subsequent oral agreements can be litigated in the summary judgment context

Ratio Decidendi

Oral evidence purporting to make the cheques conditional is inadmissible under the parol evidence rule for negotiable instruments and, in any event, the defendant's account of subsequent agreements is not credible; therefore there is no triable issue and summary judgment must be entered for the plaintiff for $195,000 plus interest and costs.

Court Disposition

Summary judgment entered for Plaintiff against Defendant

Orders

  • Judgment for Plaintiff against Defendant for $195,000
  • Interest at judgment rate from 18 November 2004 until payment