LAI CHI HING t/a KWONG YUEN DECORATION CO v. COLLECTIONS INTERIOR LTD

LAI CHI HING t/a KWONG YUEN DECORATION CO v. COLLECTIONS INTERIOR LTD

The Court found that Flexiwall's amendment of pleadings caused wasted costs in CON64 and that the defendant in CON25 had, from the material and its own witness, advanced totally without‑merit defences to the binding nature of the 23 September 1994 agreement; accordingly the party responsible for the wasted costs must pay them and the defendant must pay the plaintiffs' costs of the preliminary issue on an indemnity basis, taxed and paid forthwith.

Citation
LAI CHI HING t/a KWONG YUEN DECORATION CO v. COLLECTIONS INTERIOR LTD
Parties
First Plaintiff: LAI CHI HING trading as KWONG YUEN DECORATION COMPANY; Second Plaintiff: CHUN YIP ENGINEERING COMPANY (A Firm); Third Plaintiff: GROUP POWER ENGINEERING LIMITED; Fourth Plaintiff: TSO TAK MING, DANNY trading as UNITED GROUP ENGINEERING COMPANY; Fifth Plaintiff: LEUNG HUNG KUN trading as HUNG TAT ENGINEERING COMPANY; Sixth Plaintiff: LUEN HOP CONSTRUCTION COMPANY (A Firm); Seventh Plaintiff: HO CHI WAH trading as NGATAO DECORATION ENGINEERING COMPANY; Defendant (con25): COLLECTIONS INTERIOR LIMITED; Plaintiff (con64): COLLECTIONS INTERIOR LIMITED; Defendant (con64): FLEXIWALL ENGINEERING COMPANY LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 December 1997
Case Number
HCCT25/1996
Procedural Posture
Consolidated Civil Actions Concerning Alleged Agreement (con25 and Con64) / Judgment on Preliminary Issue and Costs (post‑trial of Preliminary Issue)
Outcome
Preliminary issue determined in favour of plaintiffs: the agreement of 23 September 1994 is binding on the plaintiffs and the defendant; defendant ordered to pay costs on indemnity basis and Flexiwall ordered to pay wasted costs of CON64.
Legal Topics
Preliminary Issue, Amendment of Pleadings, Wasted Costs, Indemnity Costs, Consolidation/deconsolidation
Source Language
EN
Contract Law Civil Procedure Costs Law Preliminary Issue Amendment of Pleadings Wasted Costs Indemnity Costs Consolidation/deconsolidation

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Parties

LAI CHI HING trading as KWONG YUEN DECORATION COMPANY

First Plaintiff

CHUN YIP ENGINEERING COMPANY (A Firm)

Second Plaintiff

GROUP POWER ENGINEERING LIMITED

Third Plaintiff

TSO TAK MING, DANNY trading as UNITED GROUP ENGINEERING COMPANY

Fourth Plaintiff

LEUNG HUNG KUN trading as HUNG TAT ENGINEERING COMPANY

Fifth Plaintiff

LUEN HOP CONSTRUCTION COMPANY (A Firm)

Sixth Plaintiff

HO CHI WAH trading as NGATAO DECORATION ENGINEERING COMPANY

Seventh Plaintiff

COLLECTIONS INTERIOR LIMITED

Defendant (con25)

COLLECTIONS INTERIOR LIMITED

Plaintiff (con64)

FLEXIWALL ENGINEERING COMPANY LIMITED

Defendant (con64)

Procedural Posture

Consolidated Civil Actions Concerning Alleged Agreement (con25 and Con64) / Judgment on Preliminary Issue and Costs (post‑trial of Preliminary Issue)

Legal Issues

  1. 1 Whether the alleged agreement dated 23 September 1994 is binding on the parties
  2. 2 Who should bear wasted costs resulting from an amendment of pleadings that changed the preliminary issue
  3. 3 Whether costs of the preliminary issue should be on an indemnity basis and paid forthwith or in the cause

Ratio Decidendi

The Court found that Flexiwall's amendment of pleadings caused wasted costs in CON64 and that the defendant in CON25 had, from the material and its own witness, advanced totally without‑merit defences to the binding nature of the 23 September 1994 agreement; accordingly the party responsible for the wasted costs must pay them and the defendant must pay the plaintiffs' costs of the preliminary issue on an indemnity basis, taxed and paid forthwith.

Court Disposition

Preliminary issue determined in favour of plaintiffs: the agreement of 23 September 1994 is binding on the plaintiffs and the defendant; defendant ordered to pay costs on indemnity basis and Flexiwall ordered to pay wasted costs of CON64.

Orders

  • It is determined as a preliminary issue that the agreement of 23 September 1994 is binding on the plaintiffs and the defendant and that only the amounts, if any, remain outstanding between the plaintiffs, individually, and the defendant.
  • The defendant (Collections Interior Limited) shall pay the costs of the plaintiffs in respect of the preliminary issue on an indemnity basis, to be taxed and paid forthwith.