LEUNG PO PO AND ANOTHER (JOINT TENANTS) v. OLYMPIC LEADER INTERNATIONAL LTD AND ANOTHER

LEUNG PO PO AND ANOTHER (JOINT TENANTS) v. OLYMPIC LEADER INTERNATIONAL LTD AND ANOTHER

The 2nd defendant was found liable: the water overflow was caused by failure to turn off the kitchen tap (negligence) and constituted breaches of tenancy clauses; under clause 4(f) the tenant is responsible for acts of occupants; consequently the 2nd defendant must indemnify the 1st defendant for the plaintiff’s claim. The settlement figure of HK$200,000 was a reasonable estimate of the plaintiff’s loss and was awarded as the indemnity sum with interest. Clause 11 did not apply to the plaintiff’s costs (Costs A) or the landlord’s own costs defending the plaintiff’s claim (Costs B) because those costs were not incurred to demand rent or enforce rights under the Tenancy Agreement; those...

Citation
LEUNG PO PO AND ANOTHER (JOINT TENANTS) v. OLYMPIC LEADER INTERNATIONAL LTD AND ANOTHER
Parties
Plaintiff (joint Tenants): Leung Po Po and Cheng Kam Chau; 1st Defendant (landlord): Olympic Leader International Limited; 2nd Defendant (tenant): Ho Lin Wah; 3rd Party (insurer): QBE General Insurance (Hong Kong) Limited (formerly Hang Seng General Insurance (Hong Kong) Company Limited)
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
27 March 2017
Case Number
DCCJ5004/2013
Procedural Posture
Civil Action for Property Damage in Negligence and Breach of Tenancy Agreement With Contribution/indemnity Claim / Judgment (post Trial)
Outcome
Judgment for the 1st defendant against the 2nd defendant: 2nd defendant to indemnify and pay the 1st defendant HK$200,000 plus interest; costs to be assessed as ordered; contribution notice costs on solicitor-and-own-client basis on nisi order.
Legal Topics
Negligence, Breach of Tenancy Agreement, Contribution and Indemnity (cap 377), Assessment of Damages, Taxation of Costs, Contractual Indemnity Clauses
Source Language
EN
Tort Contract Property Insurance Civil Procedure Costs Negligence Breach of Tenancy Agreement +4 more

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Parties

Leung Po Po and Cheng Kam Chau

Plaintiff (joint Tenants)

Olympic Leader International Limited

1st Defendant (landlord)

Ho Lin Wah

2nd Defendant (tenant)

QBE General Insurance (Hong Kong) Limited (formerly Hang Seng General Insurance (Hong Kong) Company Limited)

3rd Party (insurer)

Procedural Posture

Civil Action for Property Damage in Negligence and Breach of Tenancy Agreement With Contribution/indemnity Claim / Judgment (post Trial)

Legal Issues

  1. 1 Whether the 2nd defendant was negligent in allowing water to overflow from Flat 17A causing damage to Flat 16A
  2. 2 Whether the 2nd defendant breached clauses 2(g), 2(m) and clause 4(f) of the Tenancy Agreement
  3. 3 Whether the 2nd defendant must indemnify the 1st defendant for the plaintiff’s settled claim and related costs

Ratio Decidendi

The 2nd defendant was found liable: the water overflow was caused by failure to turn off the kitchen tap (negligence) and constituted breaches of tenancy clauses; under clause 4(f) the tenant is responsible for acts of occupants; consequently the 2nd defendant must indemnify the 1st defendant for the plaintiff’s claim. The settlement figure of HK$200,000 was a reasonable estimate of the plaintiff’s loss and was awarded as the indemnity sum with interest. Clause 11 did not apply to the plaintiff’s costs (Costs A) or the landlord’s own costs defending the plaintiff’s claim (Costs B) because those costs were not incurred to demand rent or enforce rights under the Tenancy Agreement; those...

Court Disposition

Judgment for the 1st defendant against the 2nd defendant: 2nd defendant to indemnify and pay the 1st defendant HK$200,000 plus interest; costs to be assessed as ordered; contribution notice costs on solicitor-and-own-client basis on nisi order.

Orders

  • 2nd defendant to indemnify and pay the 1st defendant the sum of HK$200,000 with interest at judgment rate from date of judgment to full payment
  • Assessment of damages: (1) plaintiff’s costs of this action to be taxed on a party and party basis paid by the 1st defendant to the plaintiff, and (2) the 1st defendant’s own costs in defending the plaintiff’s claim to be assessed on a party and party basis