SEC CONSTRUCTION MATERIAL LTD. v. TAN KIN, GEORGE AND ANOTHER

SEC CONSTRUCTION MATERIAL LTD. v. TAN KIN, GEORGE AND ANOTHER

The court accepted the documentary evidence (cooperative agreement, receipt for payment referencing the agreement, extension letter, auditors' confirmation) established the $4,000,000 was a loan to Theodore under the cooperative agreement, rejected the 1st defendant's alternative account, and therefore held the 1st defendant liable under the guarantee and entitled the plaintiff to the claimed judgment and contractual indemnity for costs.

Citation
SEC CONSTRUCTION MATERIAL LTD. v. TAN KIN, GEORGE AND ANOTHER
Parties
Plaintiff: SEC CONSTRUCTION MATERIAL LIMITED; 1st Defendant: TAN KIN, GEORGE; 2nd Defendant: CHEUNG HON WA, DICTO
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 December 2002
Case Number
HCA423/2001
Procedural Posture
Action on a Guarantee / Judgment After Trial
Outcome
Judgment for plaintiff
Legal Topics
Guarantee Enforcement, Loan Agreement, Share Mortgage, Indemnity for Costs, Default Judgment, Credibility of Witnesses
Source Language
EN
Contract Guarantee Commercial Law Civil Procedure Guarantee Enforcement Loan Agreement Share Mortgage Indemnity for Costs +2 more

Case Brief

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Parties

SEC CONSTRUCTION MATERIAL LIMITED

Plaintiff

TAN KIN, GEORGE

1st Defendant

CHEUNG HON WA, DICTO

2nd Defendant

Procedural Posture

Action on a Guarantee / Judgment After Trial

Legal Issues

  1. 1 Whether the $4,000,000 payment was a loan to Theodore under the cooperative agreement or was a loan/injection to Sky Power
  2. 2 Whether the 1st defendant is liable under the joint and several guarantee and share mortgage executed for Theodore's debt
  3. 3 Whether the plaintiff is entitled to contractual indemnity for costs on an indemnity basis

Ratio Decidendi

The court accepted the documentary evidence (cooperative agreement, receipt for payment referencing the agreement, extension letter, auditors' confirmation) established the $4,000,000 was a loan to Theodore under the cooperative agreement, rejected the 1st defendant's alternative account, and therefore held the 1st defendant liable under the guarantee and entitled the plaintiff to the claimed judgment and contractual indemnity for costs.

Court Disposition

Judgment for plaintiff

Orders

  • Judgment for the plaintiff for the sum of $7,285,393.00
  • Interest on the sum of $4,288,889.00 at the rate of 4% per month from 23 January 2001 to the date of judgment and thereafter at judgment rate until payment