CHAMPION STAR ENTERPRISE LTD AND ANOTHER v. CHAMPION STAR ENTERPRISE LTD AND OTHERS

CHAMPION STAR ENTERPRISE LTD AND ANOTHER v. CHAMPION STAR ENTERPRISE LTD AND OTHERS

The court found the defendants' misrepresentation and related defences not credible on the evidence and in context, held that the post-dated cheques were delivered and intended as payments under the Agreement, and that the Agreement's incorporation of the Debt and its guarantee provisions made the defendants and guarantors liable for the outstanding balances with interest; no triable issue existed and summary judgment was properly entered and should be upheld.

Citation
CHAMPION STAR ENTERPRISE LTD AND ANOTHER v. CHAMPION STAR ENTERPRISE LTD AND OTHERS
Parties
1st Plaintiff: Champion Star Enterprise Limited; 2nd Plaintiff: Mok Siu Kee Holdings Limited; 3rd Plaintiff: Chan Kam Chu; 4th Plaintiff: Chan Ping, Wanda; 1st Defendant: Chin Foh Trading (HK) Limited; 2nd Defendant: Kuan Pek Seng; 3rd Defendant: Chung Yat Wai Sunny; 1st Plaintiff (counterclaim): Chin Foh Trading (HK) Limited; 2nd Plaintiff (counterclaim): Kuan Pek Seng; 1st Defendant (counterclaim): Champion Star Enterprise Limited; 2nd Defendant (counterclaim): Mok Siu Kee Holdings Limited; 3rd Defendant (counterclaim): Chan Kam Chu; 4th Defendant (counterclaim): Chan Ping, Wanda; 5th Defendant (counterclaim): Chan Kam Wing, Derek
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 July 2005
Case Number
HCA847/2004
Procedural Posture
Contract and Debt Recovery (guarantee) / Appeal From Summary Judgment (court of First Instance)
Outcome
Appeal dismissed; summary judgment of Master Lung upheld
Legal Topics
Summary Judgment, Misrepresentation, Implied Terms, Post Dated Cheques as Payment, Enforceability of Foreign Debt, Guarantor Liability, Interest on Unpaid Balances
Source Language
EN
Contract Guarantee Debt Recovery Civil Procedure Bills of Exchange Summary Judgment Misrepresentation Implied Terms +4 more

Case Brief

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Parties

Champion Star Enterprise Limited

1st Plaintiff

Mok Siu Kee Holdings Limited

2nd Plaintiff

Chan Kam Chu

3rd Plaintiff

Chan Ping, Wanda

4th Plaintiff

Chin Foh Trading (HK) Limited

1st Defendant

Kuan Pek Seng

2nd Defendant

Chung Yat Wai Sunny

3rd Defendant

Chin Foh Trading (HK) Limited

1st Plaintiff (counterclaim)

Kuan Pek Seng

2nd Plaintiff (counterclaim)

Champion Star Enterprise Limited

1st Defendant (counterclaim)

Mok Siu Kee Holdings Limited

2nd Defendant (counterclaim)

Chan Kam Chu

3rd Defendant (counterclaim)

Chan Ping, Wanda

4th Defendant (counterclaim)

Chan Kam Wing, Derek

5th Defendant (counterclaim)

Procedural Posture

Contract and Debt Recovery (guarantee) / Appeal From Summary Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the defence of misrepresentation and warranty raised a credible triable issue
  2. 2 Whether there was an implied term to provide details of debtors
  3. 3 Whether post-dated cheques constituted payment under the Agreement

Ratio Decidendi

The court found the defendants' misrepresentation and related defences not credible on the evidence and in context, held that the post-dated cheques were delivered and intended as payments under the Agreement, and that the Agreement's incorporation of the Debt and its guarantee provisions made the defendants and guarantors liable for the outstanding balances with interest; no triable issue existed and summary judgment was properly entered and should be upheld.

Court Disposition

Appeal dismissed; summary judgment of Master Lung upheld

Orders

  • Appeal dismissed and summary judgment upheld for plaintiffs
  • Order nisi that the 1st and 2nd defendants pay the costs of the appeal to the 1st,2nd,3rd and 4th plaintiffs