ASIA FAITH ENGINEERING LTD v. LAI YUE LAM t/a LAI SHING IRON WORKS AND ANOTHER

ASIA FAITH ENGINEERING LTD v. LAI YUE LAM t/a LAI SHING IRON WORKS AND ANOTHER

On the balance of probabilities the 1st defendant breached the Agreement by failing to provide adequate labour causing an unexplained 7‑day delay and by ceasing to perform remedial works from 15 October 2010; the 1st defendant was not in breach regarding engagement of the Site Agent and Quantity Surveyor; the 2nd...

Source-derived case information.

Citation
ASIA FAITH ENGINEERING LTD v. LAI YUE LAM t/a LAI SHING IRON WORKS AND ANOTHER
Parties
Plaintiff: Plaintiff; Defendant: 1st Defendant; Defendant: 2nd Defendant
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
11 March 2013
Case Number
DCCJ1904/2011
Procedural Posture
Construction Contract Dispute / Final Judgment
Outcome
Judgment for the plaintiff; defendants ordered to pay HK$208,836.17; counter-claim of 1st defendant dismissed; costs to plaintiff (order nisi) with certificate for Counsel, taxable if not agreed; interest awarded at half judgment rate from writ to date of judgment then at full judgment rate thereafter.
Legal Topics
Breach of Contract, Extension of Time, Pay When Paid/back to Back Payment, Interpretation of Subcontract Clauses, Liquidated Damages, Quantum, Guarantor Liability
Source Language
en
Contract Construction Guarantee Civil Procedure Damages Breach of Contract Extension of Time Pay When Paid/back to Back Payment +4 more

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Parties

Plaintiff

Plaintiff

1st Defendant

Defendant

2nd Defendant

Defendant

Procedural Posture

Construction Contract Dispute / Final Judgment

  1. 1 Whether the 1st defendant breached the subcontract by failing to provide adequate labour and resources causing delay
  2. 2 Whether the 1st defendant breached obligations to engage a Site Agent and Quantity Surveyor
  3. 3 Whether the 1st defendant failed to carry out remedial works after 15 October 2010

Ratio Decidendi

On the balance of probabilities the 1st defendant breached the Agreement by failing to provide adequate labour causing an unexplained 7‑day delay and by ceasing to perform remedial works from 15 October 2010; the 1st defendant was not in breach regarding engagement of the Site Agent and Quantity Surveyor; the 2nd defendant signed and is liable as guarantor under Clause 7; Clause 3 was construed as a pay-when-paid/back-to-back provision entitling the 1st defendant only to sums actually paid to the plaintiff by Chevalier; gross value of workdone fixed at HK$5,623,000 with specified deductions and adjustments resulting in judgment for the plaintiff for HK$208,836.17 and dismissal of the 1st...

Court Disposition

Judgment for the plaintiff; defendants ordered to pay HK$208,836.17; counter-claim of 1st defendant dismissed; costs to plaintiff (order nisi) with certificate for Counsel, taxable if not agreed; interest awarded at half judgment rate from writ to date of judgment then at full judgment rate thereafter.

Orders

  • Judgment for the plaintiff for HK$208,836.17
  • Interest on HK$208,836.17 at half the judgment rate from date of writ to date of judgment, thereafter at full judgment rate until payment in full