LAU MUNG LAM v. ICHI STAR LTD formerly known as CARS\' MATE LTD AND ANOTHER

LAU MUNG LAM v. ICHI STAR LTD formerly known as CARS\' MATE LTD AND ANOTHER

On the facts the cumulative presence of indicia (same premises, fixtures, customer files, partial staff re-employment, servicing of same customers and continuation of business) established a transfer of the business from the 1st defendant to the 2nd defendant under the Ordinance; the plaintiff did not validly accept...

Source-derived case information.

Citation
LAU MUNG LAM v. ICHI STAR LTD formerly known as CARS\' MATE LTD AND ANOTHER
Parties
Plaintiff: Lau Mung Lam; 1st Defendant: Ichi Star Limited formerly known as Cars' Mate Limited; 2nd Defendant: Wong Yuet Ling Jojo trading as Beauty Station
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
23 May 2012
Case Number
DCCJ3238/2009
Procedural Posture
Civil Action for Breach of Contract and Liability Under Transfer of Business (protection of Creditors) Ordinance, Cap 49 / Trial on Liability and Assessment of Damages; Judgment Delivered
Outcome
Judgment for the plaintiff against the 1st and 2nd defendants; 2nd defendant liable as transferee under the Transfer of Business (Protection of Creditors) Ordinance
Legal Topics
Repudiation of Contract, Transfer of Business, Assignment of Goodwill, Statutory Liability of Transferee, Acceptance/novation, Interest and Costs
Source Language
en
Contract Law Transfer of Business (protection of Creditors) Ordinance (cap 49) Civil Procedure Remedies and Damages Repudiation of Contract Transfer of Business Assignment of Goodwill Statutory Liability of Transferee +2 more

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Parties

Lau Mung Lam

Plaintiff

Ichi Star Limited formerly known as Cars' Mate Limited

1st Defendant

Wong Yuet Ling Jojo trading as Beauty Station

2nd Defendant

Procedural Posture

Civil Action for Breach of Contract and Liability Under Transfer of Business (protection of Creditors) Ordinance, Cap 49 / Trial on Liability and Assessment of Damages; Judgment Delivered

Legal Issues

  1. 1 Whether the 2nd defendant is liable as transferee under s3 of the Transfer of Business (Protection of Creditors) Ordinance
  2. 2 Whether the plaintiff accepted a substitute contract or arrangement with the 2nd defendant on 13 April 2009
  3. 3 Measure of damages for repudiation of contract by the 1st defendant

Ratio Decidendi

On the facts the cumulative presence of indicia (same premises, fixtures, customer files, partial staff re-employment, servicing of same customers and continuation of business) established a transfer of the business from the 1st defendant to the 2nd defendant under the Ordinance; the plaintiff did not validly accept a substitute contract on 13 April 2009, therefore the 2nd defendant is liable as transferee under s3 and plaintiff is entitled to damages equal to the unused value of the prepaid packages (HK$278,969), interest and costs as ordered.

Court Disposition

Judgment for the plaintiff against the 1st and 2nd defendants; 2nd defendant liable as transferee under the Transfer of Business (Protection of Creditors) Ordinance

Orders

  • 1st defendant to pay damages to plaintiff in the sum of HK$278,969
  • Judgment entered in favour of plaintiff against 2nd defendant for damages in the sum of HK$278,969