RICOH HONG KONG LTD v. MAXWIN DIGITAL PRINTING LTD AND ANOTHER

RICOH HONG KONG LTD v. MAXWIN DIGITAL PRINTING LTD AND ANOTHER

Court found no actionable misrepresentation and no Varied Agreement; clause 15.3 was a penalty (not a genuine pre-estimate) and therefore Plaintiff could not recover the contractual lump sum for the whole minimum period; Plaintiff was limited to unpaid rentals accrued up to acceptance of repudiation (date of writ) and recoverable contractual sums plus amounts due under related agreements; judgment entered for Plaintiff totalling $135,184.70 with interest and costs.

Citation
RICOH HONG KONG LTD v. MAXWIN DIGITAL PRINTING LTD AND ANOTHER
Parties
Plaintiff: Plaintiff; 1st Defendant: 1st Defendant; 2nd Defendant (guarantor): 2nd Defendant
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
16 May 2008
Case Number
DCCJ3032/2006
Procedural Posture
Contract (hire Purchase/rental of Photocopying Machines) / Judgment at Trial
Outcome
Judgment for Plaintiff against both Defendants for $135,184.70
Legal Topics
Misrepresentation, Variation of Contract, Liquidated Damages Vs Penalty, Acceptance of Repudiation, Repossession, Guarantor Liability, Interest on Judgment, Costs
Source Language
EN
Contract Law Sales/hire Purchase Tort (misrepresentation) Remedies (damages, Interest, Costs) Civil Procedure Misrepresentation Variation of Contract Liquidated Damages Vs Penalty +5 more

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Parties

Plaintiff

Plaintiff

1st Defendant

1st Defendant

2nd Defendant

2nd Defendant (guarantor)

Procedural Posture

Contract (hire Purchase/rental of Photocopying Machines) / Judgment at Trial

Legal Issues

  1. 1 Whether Plaintiff made actionable misrepresentations about the machines' capabilities (Macintosh booklet printing, art paper handling)
  2. 2 Whether parties agreed a variation suspending rental payments (the Varied Agreement)
  3. 3 Whether clause 15.3 (payment of rentals for whole minimum period) is a valid liquidated damages clause or a penalty

Ratio Decidendi

Court found no actionable misrepresentation and no Varied Agreement; clause 15.3 was a penalty (not a genuine pre-estimate) and therefore Plaintiff could not recover the contractual lump sum for the whole minimum period; Plaintiff was limited to unpaid rentals accrued up to acceptance of repudiation (date of writ) and recoverable contractual sums plus amounts due under related agreements; judgment entered for Plaintiff totalling $135,184.70 with interest and costs.

Court Disposition

Judgment for Plaintiff against both Defendants for $135,184.70

Orders

  • Judgment awarded to Plaintiff in the sum of $135,184.70 (aggregate of $61,882.70 under Other Related Agreements and $73,302 unpaid monthly rentals)
  • Interest at 9.398% per annum from date of writ to date of judgment and thereafter at judgment rate (order nisi)