UNIC COMPANY (a firm) v. CENTUS DEVELOPMENT LIMITED

UNIC COMPANY (a firm) v. CENTUS DEVELOPMENT LIMITED

The Master erred in making leave to defend conditional on payment into court because the defendant showed a triable issue of illegality; where a bona fide triable issue exists, Order 14 requires unconditional leave to defend and the condition to pay the full claim into court must be removed.

Citation
UNIC COMPANY (a firm) v. CENTUS DEVELOPMENT LIMITED
Parties
Plaintiff: Plaintiff (buyer); Defendant/appellant: Defendant (seller)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 December 1988
Case Number
HCA4887/1988
Procedural Posture
Civil Contract (sale of Goods); Summary Judgment Under Order 14 / Appeal From Master's Order Granting Conditional Leave to Defend
Outcome
Appeal allowed; Master's order varied
Legal Topics
Summary Judgment, Leave to Defend, Illegality Defence, Return of Price
Source Language
EN
Contract Civil Procedure Illegality Sale of Goods Summary Judgment Leave to Defend Illegality Defence Return of Price

Case Brief

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Parties

Plaintiff (buyer)

Plaintiff

Defendant (seller)

Defendant/appellant

Procedural Posture

Civil Contract (sale of Goods); Summary Judgment Under Order 14 / Appeal From Master's Order Granting Conditional Leave to Defend

Legal Issues

  1. 1 Whether the Master was entitled to grant leave to defend only on condition that the defendant pay the full sum into court under Order 14
  2. 2 Whether there is a triable issue that the contract was void for illegality (intended smuggling to Taiwan) defeating the plaintiff's claim for recovery of the price
  3. 3 Whether a conditional payment into court would effectively deny the defendant the right to defend

Ratio Decidendi

The Master erred in making leave to defend conditional on payment into court because the defendant showed a triable issue of illegality; where a bona fide triable issue exists, Order 14 requires unconditional leave to defend and the condition to pay the full claim into court must be removed.

Court Disposition

Appeal allowed; Master's order varied

Orders

  • Master's order varied: condition that defendant pay US$103,500 into Court removed
  • Defendant granted unconditional leave to defend the action