SHUN KAI FINANCE CO LTD (In Compulsory Liquidation) AND OTHERS v. JAPAN LEASING (HONG KONG) LIMITED (In Creditors\' Voluntary Liquidation)

SHUN KAI FINANCE CO LTD (In Compulsory Liquidation) AND OTHERS v. JAPAN LEASING (HONG KONG) LIMITED (In Creditors\' Voluntary Liquidation)

The 3rd plaintiff's claim was struck out because she abandoned reflective loss claims and in any event failed to plead a special relationship or assumption of responsibility necessary to recover pure economic loss; non‑physical emotional distress damages were not recoverable on the pleaded facts; the proposed re‑amendments disclosed no reasonable cause of action and leave to amend was refused.

Citation
SHUN KAI FINANCE CO LTD (In Compulsory Liquidation) AND OTHERS v. JAPAN LEASING (HONG KONG) LIMITED (In Creditors\' Voluntary Liquidation)
Parties
1st Plaintiff (in Compulsory Liquidation): Shun Kai Finance Company Limited; 2nd Plaintiff: Wong Shun; 3rd Plaintiff: Yeung Pui Ying Anna; Defendant (in Creditors Voluntary Liquidation): Japan Leasing (Hong Kong) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 September 2008
Case Number
HCA13826/1998
Procedural Posture
Civil Action – Tort and Contractual Claims (negligence, Estoppel, Procurement of Breach) / Interlocutory Applications: Defendant's Strike Out Application and Plaintiff's Summons to Re Amend; Decision on 30 September 2008
Outcome
Amended Statement of Claim and Particulars of Damage struck out as against the 3rd plaintiff; 3rd plaintiff's action dismissed; 3rd plaintiff's summons to re‑amend dismissed; costs ordered nisi in favour of defendant.
Legal Topics
Strike Out, Reflective Loss, Pure Economic Loss, Emotional Distress Damages, Assumption of Responsibility, Duty of Care, Leave to Amend
Source Language
EN
Civil Procedure Tort Contract Company Law Insolvency Strike Out Reflective Loss Pure Economic Loss +4 more

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Parties

Shun Kai Finance Company Limited

1st Plaintiff (in Compulsory Liquidation)

Wong Shun

2nd Plaintiff

Yeung Pui Ying Anna

3rd Plaintiff

Japan Leasing (Hong Kong) Limited

Defendant (in Creditors Voluntary Liquidation)

Procedural Posture

Civil Action – Tort and Contractual Claims (negligence, Estoppel, Procurement of Breach) / Interlocutory Applications: Defendant's Strike Out Application and Plaintiff's Summons to Re Amend; Decision on 30 September 2008

Legal Issues

  1. 1 Whether the Amended Statement of Claim discloses a reasonable cause of action
  2. 2 Whether the 3rd plaintiff can recover pure economic loss from the defendant
  3. 3 Whether the 3rd plaintiff can recover reflective loss as a shareholder

Ratio Decidendi

The 3rd plaintiff's claim was struck out because she abandoned reflective loss claims and in any event failed to plead a special relationship or assumption of responsibility necessary to recover pure economic loss; non‑physical emotional distress damages were not recoverable on the pleaded facts; the proposed re‑amendments disclosed no reasonable cause of action and leave to amend was refused.

Court Disposition

Amended Statement of Claim and Particulars of Damage struck out as against the 3rd plaintiff; 3rd plaintiff's action dismissed; 3rd plaintiff's summons to re‑amend dismissed; costs ordered nisi in favour of defendant.

Orders

  • Strike out the Amended Statement of Claim and the Particulars of Damage as against the 3rd plaintiff
  • Dismiss the 3rd plaintiff\u2019s action against the defendant