DRAGON PEARL NIGHT CLUB RESTAURANT LTD v. LEUNG WAN KEE SHIPYARD LTD

DRAGON PEARL NIGHT CLUB RESTAURANT LTD v. LEUNG WAN KEE SHIPYARD LTD

As a matter of construction of the written Agreement (considering CIF delivery terms, reservation of documents/seatrials, risk retention/insurance obligation, and the scheme of instalments), property in the vessel remained with Leung Wan Kee until completion and delivery in Hong Kong; Leung Wan Kee therefore possessed a common law and statutory lien limited to the 5th instalment and a statutory right to sell; accordingly Dragon Pearl's applications for delivery up and interim injunction failed and were dismissed, the striking out application failed, Dragon Pearl was granted unconditional leave to defend the LWK action, the interim payment application was dismissed, and consolidation was...

Citation
DRAGON PEARL NIGHT CLUB RESTAURANT LTD v. LEUNG WAN KEE SHIPYARD LTD
Parties
Plaintiff (hca889); 1st Defendant (hca1288): Dragon Pearl Night Club Restaurant Limited; Defendant (hca889); Plaintiff (hca1288): Leung Wan Kee Shipyard Limited; 2nd Defendant (hca1288): Chan Siu Tung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 December 2010
Case Number
HCA889/2010
Procedural Posture
Civil Contract (shipbuilding), Sale of Goods, Possessory Remedies and Tort (conversion/trespass) / Interlocutory Applications Determined on Summonses (order 14 a Determination of Question of Construction; Hearing in Chambers; Decision on Multiple Applications)
Outcome
Order determining property: property remains with Leung Wan Kee; delivery and injunction applications dismissed; striking out dismissed; Dragon Pearl given unconditional leave to defend LWK action; interim payment application dismissed; consolidation adjourned for parties to file terms; costs orders made and...
Legal Topics
Passing of Property, Sale of Unascertained Goods, Appropriation, Unpaid Seller's Lien, Delivery Up, Interim Injunction, Striking Out, Partial Judgment, Consolidation, Revesting on Repudiation
Source Language
EN
Contract Sale of Goods Property Tort Maritime Civil Procedure Equity Passing of Property +9 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 7 Authorities cited 12 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Dragon Pearl Night Club Restaurant Limited

Plaintiff (hca889); 1st Defendant (hca1288)

Leung Wan Kee Shipyard Limited

Defendant (hca889); Plaintiff (hca1288)

Chan Siu Tung

2nd Defendant (hca1288)

Procedural Posture

Civil Contract (shipbuilding), Sale of Goods, Possessory Remedies and Tort (conversion/trespass) / Interlocutory Applications Determined on Summonses (order 14 a Determination of Question of Construction; Hearing in Chambers; Decision on Multiple Applications)

Legal Issues

  1. 1 Whether property in the vessel passed to the buyer or remained with the shipbuilder
  2. 2 Whether the question of passing of property was suitable for determination under Order 14A
  3. 3 Whether the seller possessed and lost an unpaid seller's lien and the extent of that lien

Ratio Decidendi

As a matter of construction of the written Agreement (considering CIF delivery terms, reservation of documents/seatrials, risk retention/insurance obligation, and the scheme of instalments), property in the vessel remained with Leung Wan Kee until completion and delivery in Hong Kong; Leung Wan Kee therefore possessed a common law and statutory lien limited to the 5th instalment and a statutory right to sell; accordingly Dragon Pearl's applications for delivery up and interim injunction failed and were dismissed, the striking out application failed, Dragon Pearl was granted unconditional leave to defend the LWK action, the interim payment application was dismissed, and consolidation was...

Court Disposition

Order determining property: property remains with Leung Wan Kee; delivery and injunction applications dismissed; striking out dismissed; Dragon Pearl given unconditional leave to defend LWK action; interim payment application dismissed; consolidation adjourned for parties to file terms; costs orders made and...

Orders

  • Delivery and injunction summons by Dragon Pearl dismissed; costs nisi to Leung Wan Kee with certificate for counsel
  • Striking out summons dismissed; costs nisi to Leung Wan Kee with certificate for counsel