PACIFIC DIGITAL TECHNOLOGY LTD v. UL TRAN TECHNOLOGY & SERVICE CO

PACIFIC DIGITAL TECHNOLOGY LTD v. UL TRAN TECHNOLOGY & SERVICE CO

The Court held that UL's Defence and Counterclaim amounted to acceptance of Pacific's repudiation (which in the Statement of Claim pleaded a total failure of consideration and rejection ab initio), and that acceptance of that rejection revested property in UL and restored its immediate right to possession; Pacific had no valid lien; accordingly UL was entitled to summary judgment for delivery up of the machines and Pacific's cross-appeal to adduce a late affirmation was dismissed.

Citation
PACIFIC DIGITAL TECHNOLOGY LTD v. UL TRAN TECHNOLOGY & SERVICE CO
Parties
Plaintiff (by Original Action); 1st Defendant (by Counterclaim): Pacific Digital Technology Limited (formerly known as Winners Laser Production Limited); Defendant (by Original Action); Plaintiff (by Counterclaim): UL Tran Technology & Service Co.; 2nd Defendant (by Counterclaim): Winners Workshop Production Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 March 2004
Case Number
HCA4687/2002
Procedural Posture
Civil Sale of Goods and Counterclaim for Delivery Up / Appeal From Master's Refusal to Grant Summary Judgment (interlocutory Appeal)
Outcome
Appeal allowed. Summary judgment granted to UL on its counterclaim for delivery up. Pacific's cross-appeal dismissed.
Legal Topics
Rejection of Goods, Revesting of Property, Romalpa Clause, Summary Judgment, Lien, Total Failure of Consideration, Delivery Up of Goods
Source Language
EN
Contract Sale of Goods Property Law Equitable Remedies Civil Procedure Rejection of Goods Revesting of Property Romalpa Clause +4 more

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Parties

Pacific Digital Technology Limited (formerly known as Winners Laser Production Limited)

Plaintiff (by Original Action); 1st Defendant (by Counterclaim)

UL Tran Technology & Service Co.

Defendant (by Original Action); Plaintiff (by Counterclaim)

Winners Workshop Production Company Limited

2nd Defendant (by Counterclaim)

Procedural Posture

Civil Sale of Goods and Counterclaim for Delivery Up / Appeal From Master's Refusal to Grant Summary Judgment (interlocutory Appeal)

Legal Issues

  1. 1 Whether acceptance by seller of buyer's rejection revests property and entitles seller to summary judgment for delivery up
  2. 2 Whether pleadings alleging total failure of consideration and rejection operate to avoid contract ab initio and cause property to revest
  3. 3 Whether buyer (Pacific) has a lien over the machines

Ratio Decidendi

The Court held that UL's Defence and Counterclaim amounted to acceptance of Pacific's repudiation (which in the Statement of Claim pleaded a total failure of consideration and rejection ab initio), and that acceptance of that rejection revested property in UL and restored its immediate right to possession; Pacific had no valid lien; accordingly UL was entitled to summary judgment for delivery up of the machines and Pacific's cross-appeal to adduce a late affirmation was dismissed.

Court Disposition

Appeal allowed. Summary judgment granted to UL on its counterclaim for delivery up. Pacific's cross-appeal dismissed.

Orders

  • Order that the Machines be delivered up to UL Tran Technology & Service Co.
  • Pacific's cross-appeal dismissed; application to adduce late 3rd affirmation refused