佛山市南海公誠華創置製衣有限公司 v. DOUCEUR FASHIONS LTD AND ANOTHER

佛山市南海公誠華創置製衣有限公司 v. DOUCEUR FASHIONS LTD AND ANOTHER

The court found the 2nd defendant liable under the Guarantee: clause 4's term 'immediately' was to be interpreted as 'as soon as practicable' after receipt of the signed guarantee and was fulfilled; no actionable representation induced the guarantee nor was reliance reasonable; the set-off defence failed because the 1st defendant's rights were superseded by a consent judgment and the defendant failed to prove entitlement to the alleged deductions; accordingly judgment was entered for the plaintiff for the net sum plus interest and costs.

Citation
佛山市南海公誠華創置製衣有限公司 v. DOUCEUR FASHIONS LTD AND ANOTHER
Parties
Plaintiff: Plaintiff; 1st Defendant: 1st defendant; 2nd Defendant: 2nd defendant
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
18 November 2013
Case Number
DCCJ2847/2011
Procedural Posture
Contract Claim Under a Personal Guarantee / Judgment (district Court)
Outcome
Judgment for plaintiff against 2nd defendant
Legal Topics
Personal Guarantee, Condition Precedent, Misrepresentation, Contract Interpretation, Equitable Set Off, Consent Judgment, Interest, Costs
Source Language
EN
Contract Guarantee Commercial Law Civil Procedure Evidence Personal Guarantee Condition Precedent Misrepresentation +5 more

Case Brief

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Parties

Plaintiff

Plaintiff

1st defendant

1st Defendant

2nd defendant

2nd Defendant

Procedural Posture

Contract Claim Under a Personal Guarantee / Judgment (district Court)

Legal Issues

  1. 1 Whether the 2nd defendant is liable under the Guarantee after providing the bank slip for separate goods
  2. 2 Whether clause 4 was a breached condition precedent rendering the Guarantee void
  3. 3 Whether the Guarantee was procured by misrepresentation and/or reliance thereon

Ratio Decidendi

The court found the 2nd defendant liable under the Guarantee: clause 4's term 'immediately' was to be interpreted as 'as soon as practicable' after receipt of the signed guarantee and was fulfilled; no actionable representation induced the guarantee nor was reliance reasonable; the set-off defence failed because the 1st defendant's rights were superseded by a consent judgment and the defendant failed to prove entitlement to the alleged deductions; accordingly judgment was entered for the plaintiff for the net sum plus interest and costs.

Court Disposition

Judgment for plaintiff against 2nd defendant

Orders

  • Judgment for the plaintiff against the 2nd defendant for HK$999,997.13
  • Interest on HK$999,997.13 at judgment rate from date of issue of writ to date of judgment and thereafter at judgment rate until payment