MESSRS BAKER & MCKENZIE v. HENNEX INDUSTRIES LIMITED AND OTHERS

MESSRS BAKER & MCKENZIE v. HENNEX INDUSTRIES LIMITED AND OTHERS

The court construed the Superseding Orders by their express terms and plans, holding items 2-4 and the necessary attendant expenses of scaffolding and insurance (items 1 and 7) were reasonably necessary to comply. The disputed works (items 5 and 6) were not within the scope of the Superseding Orders; the Buildings Department letter did not corroborate the alleged oral representation. Therefore the 1st and 2nd claimants were liable for items 1-4 and 7 totaling HK$100,000; prior releases and payments were accounted for and the remaining funds ordered distributed accordingly; costs were awarded against the 3rd and 4th claimants.

Citation
MESSRS BAKER & MCKENZIE v. HENNEX INDUSTRIES LIMITED AND OTHERS
Parties
Applicant: Messrs Baker & McKenzie; 1st Claimant: Hennex Industries Limited; 2nd Claimant: Make Sales Enterprise Limited; 3rd Claimant: Sheen Wealth Industrial Limited; 4th Claimant: Kingdom Power Development Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
20 August 2014
Case Number
DCMP809/2014
Procedural Posture
Miscellaneous Proceedings / Interpleader / Judgment (20 August 2014)
Outcome
Interpleader relief granted; court determined entitlement and ordered distribution of the stakeholder funds and costs awards.
Legal Topics
Interpleader, Unauthorized Building Works, Buildings Ordinance Compliance, Contractual Warranty, Costs Assessment, Apportionment of Remedial Costs
Source Language
EN
Civil Procedure Property Law Contract Law Building Regulations Interpleader Unauthorized Building Works Buildings Ordinance Compliance Contractual Warranty +2 more

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Parties

Messrs Baker & McKenzie

Applicant

Hennex Industries Limited

1st Claimant

Make Sales Enterprise Limited

2nd Claimant

Sheen Wealth Industrial Limited

3rd Claimant

Kingdom Power Development Limited

4th Claimant

Procedural Posture

Miscellaneous Proceedings / Interpleader / Judgment (20 August 2014)

Legal Issues

  1. 1 Whether items 1, 5, 6 and 7 of the quotation were reasonably necessary to comply with the Superseding Orders
  2. 2 Whether apportionment of items 1 and 7 of the quotation between claimants is justified
  3. 3 Whether the oral representation by a Buildings Department officer could extend the scope of the Superseding Orders

Ratio Decidendi

The court construed the Superseding Orders by their express terms and plans, holding items 2-4 and the necessary attendant expenses of scaffolding and insurance (items 1 and 7) were reasonably necessary to comply. The disputed works (items 5 and 6) were not within the scope of the Superseding Orders; the Buildings Department letter did not corroborate the alleged oral representation. Therefore the 1st and 2nd claimants were liable for items 1-4 and 7 totaling HK$100,000; prior releases and payments were accounted for and the remaining funds ordered distributed accordingly; costs were awarded against the 3rd and 4th claimants.

Court Disposition

Interpleader relief granted; court determined entitlement and ordered distribution of the stakeholder funds and costs awards.

Orders

  • Pursuant to Clause 1 of the Rider the 1st and 2nd claimants are obliged to pay items 1-4 and 7 of the quotation totaling HK$100,000
  • The remaining disputed sum of HK$159,916 to be released to the 1st and 2nd claimants forthwith