FOSHAN FOREIGN ECONOMIC AND TRADE IMPORT AND EXPORT CORPORATION OF GUANGDONG AND ANOTHER v. SABINA ENTERPRISES LTD. AND ANOTHER

FOSHAN FOREIGN ECONOMIC AND TRADE IMPORT AND EXPORT CORPORATION OF GUANGDONG AND ANOTHER v. SABINA ENTERPRISES LTD. AND ANOTHER

The plaintiffs proved on their uncontested evidence and documentary record the existence and performance of the sub-sale contracts, the transfer of the LME warrants, the delivery of funds and the post-dated cheque to the bank, and the 2nd defendant\u2019s personal undertaking; the defendants failed to adduce...

Source-derived case information.

Citation
FOSHAN FOREIGN ECONOMIC AND TRADE IMPORT AND EXPORT CORPORATION OF GUANGDONG AND ANOTHER v. SABINA ENTERPRISES LTD. AND ANOTHER
Parties
1st Plaintiff: Foshan Foreign Economic and Trade Import and Export Corporation of Guangdong; 2nd Plaintiff: The Industrial and Commercial Bank of China (Foshan Branch); 1st Defendant: Sabina Enterprises Limited; 2nd Defendant: Zhang Sabine Soi Fan (aka Wan Soi Fan; aliases Zhang Sabina Soi Fan, Zhang Soi Fan Sabine, Zhang Soi Fan Sabina)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 October 2001
Case Number
HCA20342/1998
Procedural Posture
Civil Commercial Contract and Guarantee (action for Debt) / Judgment After Trial (defaulting Defendants; Trial Heard on Plaintiffs' Evidence)
Outcome
Judgment for the 1st and 2nd plaintiffs against the 1st and 2nd defendants for HK$4,000,000; counterclaim dismissed; costs to plaintiffs.
Legal Topics
Sub Sale Contracts, Letters of Credit, Dishonoured Cheque/post Dated Cheque, Personal Guarantee/undertaking, Illegality Defence, Interest and Costs
Source Language
en
Contract Banking Law Bills of Exchange Guarantee Law Commercial Law Sub Sale Contracts Letters of Credit Dishonoured Cheque/post Dated Cheque +3 more

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Parties

Foshan Foreign Economic and Trade Import and Export Corporation of Guangdong

1st Plaintiff

The Industrial and Commercial Bank of China (Foshan Branch)

2nd Plaintiff

Sabina Enterprises Limited

1st Defendant

Zhang Sabine Soi Fan (aka Wan Soi Fan; aliases Zhang Sabina Soi Fan, Zhang Soi Fan Sabine, Zhang Soi Fan Sabina)

2nd Defendant

Procedural Posture

Civil Commercial Contract and Guarantee (action for Debt) / Judgment After Trial (defaulting Defendants; Trial Heard on Plaintiffs' Evidence)

Legal Issues

  1. 1 Whether defendants liable to pay outstanding HK$4,000,000 under the sub-sale contracts and subsequent undertakings/guarantee
  2. 2 Whether the 2nd defendant\u2019s guarantee and undertakings were void for illegality as alleged by defendants
  3. 3 Whether the post-dated cheque was enforceable and whether notice of dishonour was required

Ratio Decidendi

The plaintiffs proved on their uncontested evidence and documentary record the existence and performance of the sub-sale contracts, the transfer of the LME warrants, the delivery of funds and the post-dated cheque to the bank, and the 2nd defendant\u2019s personal undertaking; the defendants failed to adduce evidence to support allegations of illegality or sham, so the guarantee and undertakings were enforceable and the defendants were liable for HK$4,000,000 plus interest and costs.

Court Disposition

Judgment for the 1st and 2nd plaintiffs against the 1st and 2nd defendants for HK$4,000,000; counterclaim dismissed; costs to plaintiffs.

Orders

  • Judgment for HK$4,000,000 in favour of the plaintiffs against the defendants.
  • Interest on HK$4,000,000 at 1% above prime rate from 6 November 1998 until judgment and thereafter at judgment rate until payment.