FRUIT DESIGN AND BUILD LTD v. LEUNG KWOK PONG ALSO KNOWN AS ADAM LEUNG

FRUIT DESIGN AND BUILD LTD v. LEUNG KWOK PONG ALSO KNOWN AS ADAM LEUNG

The court held that the plaintiff's 2019 contractual claim for unpaid progress payments under IPA Nos 8–16 is a liquidated demand because the Progress Payment Clause conferred an ascertainable interim valuation mechanism; the plaintiff's post-judgment application to amend to add quantum meruit was disallowed as not exceptional and requiring writ amendment; the 2019 final judgment was irregular as entered for amounts exceeding contractual entitlement and was therefore varied down to HK$3,514,686 while the 2020 final judgment (which duplicated claims and contained unliquidated elements) was set aside and replaced by an interlocutory judgment with damages to be assessed; consequent garnishee...

Citation
[2021] HKCFI 3391
Parties
Plaintiff (judgment Creditor): Fruit Design and Build Limited; Defendant (judgment Debtor): Leung Kwok Pong also known as Adam Leung; Garnishee: Wong Yin Shun, Chung Ho Yee Nelson, Wu Hung Pun Wilson, Sin Chui Yi Abby and Kam Fai trading as Hon & Co (a firm)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 November 2021
Case Number
HCA334/2020
Procedural Posture
Civil Enforcement Proceedings: Debt Recovery, Construction Contract Dispute and Garnishee Proceedings / Chambers Hearing on Summonses to Set Aside Default Judgments and to Discharge Garnishee Orders; Decision on Variation of Judgments and Costs (master's Decision)
Outcome
Amendment to add quantum meruit disallowed; 2019 final judgment varied and reduced; 2020 final judgment set aside and replaced with interlocutory judgment; garnishee order in 2019 made absolute; garnishee order in 2020 discharged; costs allocated between parties and garnishee as detailed.
Legal Topics
Liquidated Demand, Default Judgment, Set Aside/vary Judgment, Garnishee Order, Quantum Meruit, Progress Payments, Duplication of Claims, Mareva Injunction Impact
Source Language
EN
Construction Law Contract Law Civil Procedure Enforcement and Garnishment Liquidated Demand Default Judgment Set Aside/vary Judgment Garnishee Order +4 more

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Parties

Fruit Design and Build Limited

Plaintiff (judgment Creditor)

Leung Kwok Pong also known as Adam Leung

Defendant (judgment Debtor)

Wong Yin Shun, Chung Ho Yee Nelson, Wu Hung Pun Wilson, Sin Chui Yi Abby and Kam Fai trading as Hon & Co (a firm)

Garnishee

Procedural Posture

Civil Enforcement Proceedings: Debt Recovery, Construction Contract Dispute and Garnishee Proceedings / Chambers Hearing on Summonses to Set Aside Default Judgments and to Discharge Garnishee Orders; Decision on Variation of Judgments and Costs (master's Decision)

Legal Issues

  1. 1 Whether the plaintiff's claim in HCA 915/2019 (IPAs 8–16) is a liquidated demand
  2. 2 Whether the defendant's proposed defence to the 2019 default judgment has a real prospect of success
  3. 3 Whether the plaintiff may amend post-judgment to add a quantum meruit claim

Ratio Decidendi

The court held that the plaintiff's 2019 contractual claim for unpaid progress payments under IPA Nos 8–16 is a liquidated demand because the Progress Payment Clause conferred an ascertainable interim valuation mechanism; the plaintiff's post-judgment application to amend to add quantum meruit was disallowed as not exceptional and requiring writ amendment; the 2019 final judgment was irregular as entered for amounts exceeding contractual entitlement and was therefore varied down to HK$3,514,686 while the 2020 final judgment (which duplicated claims and contained unliquidated elements) was set aside and replaced by an interlocutory judgment with damages to be assessed; consequent garnishee...

Court Disposition

Amendment to add quantum meruit disallowed; 2019 final judgment varied and reduced; 2020 final judgment set aside and replaced with interlocutory judgment; garnishee order in 2019 made absolute; garnishee order in 2020 discharged; costs allocated between parties and garnishee as detailed.

Orders

  • Amendment Application disallowed; costs of and occasioned by the Amendment Application to the defendant (order nisi).
  • 2019 Action: Final judgment dated 1 June 2020 varied; judgment sum reduced to HK$3,514,686.