STAR PLAY DEVELOPMENT LTD v. GLORY GOLD LTD t/a KAM HO SEAFOOD RESTAURANT AND ANOTHER

STAR PLAY DEVELOPMENT LTD v. GLORY GOLD LTD t/a KAM HO SEAFOOD RESTAURANT AND ANOTHER

1st defendant breached the tenancy by failing to pay rent and other sums from 1 April 2005; contractual terms prohibited set-off; plaintiff validly accepted repudiation and lawfully re-entered under clause 7, terminating the tenancy and licences; damages were properly quantified subject to mitigation by re-letting and credit for deposit and distraint proceeds; guarantor (2nd defendant) liable up to contractual caps; plaintiff entitled to contractual interest and costs. Judgment entered for plaintiff accordingly.

Citation
STAR PLAY DEVELOPMENT LTD v. GLORY GOLD LTD t/a KAM HO SEAFOOD RESTAURANT AND ANOTHER
Parties
Plaintiff (landlord): Star Play Development Limited; 1st Defendant (tenant): Glory Gold Limited trading as Kam Ho Seafood Restaurant; 2nd Defendant (guarantor): 2nd Defendant (guarantor)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 June 2009
Case Number
HCA1186/2006
Procedural Posture
Landlord and Tenant / Contract / Guarantee / Judgment After Trial (reasons for Judgment Delivered)
Outcome
Judgment for the plaintiff against the 1st defendant for HKD 5,983,786.05 with interest at 1% above HSBC best lending rate from 3 June 2006 to date of judgment and thereafter at judgment rate; judgment for the plaintiff against the 2nd defendant for HKD 1,195,064.52 with same interest; costs to plaintiff against...
Legal Topics
Repudiation, Re Entry and Forfeiture, Termination of Licences, Quantum of Damages, Mitigation of Loss, Set Off, Contractual Interest, Costs
Source Language
EN
Contract Landlord and Tenant Guarantee Commercial Law Remedies (damages) Repudiation Re Entry and Forfeiture Termination of Licences +5 more

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Parties

Star Play Development Limited

Plaintiff (landlord)

Glory Gold Limited trading as Kam Ho Seafood Restaurant

1st Defendant (tenant)

2nd Defendant (guarantor)

2nd Defendant (guarantor)

Procedural Posture

Landlord and Tenant / Contract / Guarantee / Judgment After Trial (reasons for Judgment Delivered)

Legal Issues

  1. 1 Whether the 1st defendant repudiated the tenancy by non-payment from 1 April 2005
  2. 2 Whether alleged misrepresentation and wrongful eviction excused non-payment or founded counterclaim
  3. 3 Whether plaintiff validly re-entered and terminated the tenancy and related licences under contractual clauses

Ratio Decidendi

1st defendant breached the tenancy by failing to pay rent and other sums from 1 April 2005; contractual terms prohibited set-off; plaintiff validly accepted repudiation and lawfully re-entered under clause 7, terminating the tenancy and licences; damages were properly quantified subject to mitigation by re-letting and credit for deposit and distraint proceeds; guarantor (2nd defendant) liable up to contractual caps; plaintiff entitled to contractual interest and costs. Judgment entered for plaintiff accordingly.

Court Disposition

Judgment for the plaintiff against the 1st defendant for HKD 5,983,786.05 with interest at 1% above HSBC best lending rate from 3 June 2006 to date of judgment and thereafter at judgment rate; judgment for the plaintiff against the 2nd defendant for HKD 1,195,064.52 with same interest; costs to plaintiff against...

Orders

  • Judgment for plaintiff against 1st defendant in the sum of HK$5,983,786.05 with interest at 1% above the best lending rate of HSBC from 3 June 2006 to date of judgment and at judgment rate thereafter until payment.
  • Judgment for plaintiff against 2nd defendant in the sum of HK$1,195,064.52 with interest at 1% above the best lending rate of HSBC from 3 June 2006 to date of judgment and at judgment rate thereafter until payment.