SECRETARY FOR JUSTICE v. CHAN TAT KI AND ANOTHER

SECRETARY FOR JUSTICE v. CHAN TAT KI AND ANOTHER

The Controller's decision that the 1st defendant's performance was unsatisfactory was made honestly and on a rational basis; the plaintiff discharged the burden to show the discretion was exercised in good faith; the court preferred the evidence of the plaintiff's witness (Ms Tang) and found no fraudulent misrepresentation induced the defendants to sign; accordingly the repayment obligation under the Undertaking and Guarantee was enforceable and the counterclaim for rescission failed.

Citation
SECRETARY FOR JUSTICE v. CHAN TAT KI AND ANOTHER
Parties
Plaintiff: Secretary for Justice; 1st Defendant: Chan Tat Ki; 2nd Defendant: Chan Sum Yee
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
25 March 2011
Case Number
DCCJ3786/2008
Procedural Posture
Civil Action (recovery of Training Expenses) / Judgment Delivered After Trial
Outcome
Judgment for the plaintiff; counterclaim dismissed; costs awarded to plaintiff
Legal Topics
Fraudulent Misrepresentation, Rescission, Enforceability of Contractual Discretion, Guarantor Liability, Assessment of Discretionary Contractual Powers
Source Language
EN
Contract Employment Law Misrepresentation Guarantee Civil Procedure Fraudulent Misrepresentation Rescission Enforceability of Contractual Discretion +2 more

Case Brief

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Parties

Secretary for Justice

Plaintiff

Chan Tat Ki

1st Defendant

Chan Sum Yee

2nd Defendant

Procedural Posture

Civil Action (recovery of Training Expenses) / Judgment Delivered After Trial

Legal Issues

  1. 1 Whether the contractual condition triggering liability to repay training expenses had arisen
  2. 2 Whether the defendants were induced to sign the Undertaking and Guarantee by fraudulent misrepresentation
  3. 3 Whether the Controller exercised the contractual discretion honestly and in good faith

Ratio Decidendi

The Controller's decision that the 1st defendant's performance was unsatisfactory was made honestly and on a rational basis; the plaintiff discharged the burden to show the discretion was exercised in good faith; the court preferred the evidence of the plaintiff's witness (Ms Tang) and found no fraudulent misrepresentation induced the defendants to sign; accordingly the repayment obligation under the Undertaking and Guarantee was enforceable and the counterclaim for rescission failed.

Court Disposition

Judgment for the plaintiff; counterclaim dismissed; costs awarded to plaintiff

Orders

  • Judgment entered for the plaintiff against the 1st and 2nd defendants in the sum of HK$790,902.76
  • Interest at 1% above HSBC prime rate from date of writ until today; interest from today at the judgment rate until full payment