INTERNATIONAL BALLY CHEMICAL CO. LTD. and Another v. LAU TAK and Others

INTERNATIONAL BALLY CHEMICAL CO. LTD. and Another v. LAU TAK and Others

The Court allowed the appeal and entered judgment for the 2nd Plaintiff because the 1st Defendant's account that his $500,000 payment discharged his liability was inherently implausible and unsupported by contemporaneous documents, such that there was no real or bona fide defence to the contribution claim for $505,146; accordingly the part of the Deputy Judge's order granting unconditional leave to defend was set aside and judgment was entered with interest to be fixed.

Citation
INTERNATIONAL BALLY CHEMICAL CO. LTD. and Another v. LAU TAK and Others
Parties
1st Plaintiff: INTERNATIONAL BALLY CHEMICAL COMPANY LIMITED; 2nd Plaintiff (appellant): CHEUNG MO KIT; 1st Defendant (respondent): LAU TAK; 2nd Defendant: WONG HON SUI; 3rd Defendant: INTERNATIONAL CHEM-METALS (HK) LIMITED
Court
Court of Appeal
Jurisdiction
Hong Kong
Judgment Date
4 July 1995
Case Number
CACV69/1995
Procedural Posture
Civil Appeal From Interlocutory Order / Appeal From Deputy Judge's Order on Summary Judgment Under Order 14
Outcome
Appeal allowed; part of Deputy Judge's order discharged; judgment entered for the 2nd Plaintiff against the 1st Defendant for $505,146 with interest to be determined
Legal Topics
Summary Judgment, Co Guarantor Contribution, Discharge of Liability by Payment, Credibility of Defence, Interest on Judgment
Source Language
EN
Civil Procedure Guarantee and Suretyship Company Law Evidence Summary Judgment Co Guarantor Contribution Discharge of Liability by Payment Credibility of Defence +1 more

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Parties

INTERNATIONAL BALLY CHEMICAL COMPANY LIMITED

1st Plaintiff

CHEUNG MO KIT

2nd Plaintiff (appellant)

LAU TAK

1st Defendant (respondent)

WONG HON SUI

2nd Defendant

INTERNATIONAL CHEM-METALS (HK) LIMITED

3rd Defendant

Procedural Posture

Civil Appeal From Interlocutory Order / Appeal From Deputy Judge's Order on Summary Judgment Under Order 14

Legal Issues

  1. 1 Whether summary judgment should have been entered against the 1st Defendant on the 2nd Plaintiff's contribution claim
  2. 2 Whether the alleged payment of $500,000 discharged the 1st Defendant's liability as a guarantor
  3. 3 Whether the 1st Defendant has a real and bona fide defence supported by credible contemporaneous evidence

Ratio Decidendi

The Court allowed the appeal and entered judgment for the 2nd Plaintiff because the 1st Defendant's account that his $500,000 payment discharged his liability was inherently implausible and unsupported by contemporaneous documents, such that there was no real or bona fide defence to the contribution claim for $505,146; accordingly the part of the Deputy Judge's order granting unconditional leave to defend was set aside and judgment was entered with interest to be fixed.

Court Disposition

Appeal allowed; part of Deputy Judge's order discharged; judgment entered for the 2nd Plaintiff against the 1st Defendant for $505,146 with interest to be determined

Orders

  • Set aside the Deputy Judge's order granting the 1st Defendant unconditional leave to defend the 2nd Plaintiff's claim for $505,146
  • Enter judgment for the 2nd Plaintiff against the 1st Defendant in the sum of $505,146 with interest