Profit Power Groups Ltd. and Another v. Healthy King Technology Co. Ltd. and Another

Profit Power Groups Ltd. and Another v. Healthy King Technology Co. Ltd. and Another

The appeal is allowed in part because the mainland test report, although suspiciously timed, raised a triable issue about breach of condition/quality that could not be resolved on an Order 14 application; accordingly the plaintiffs demonstrated a real, if shadowy, defence requiring trial and the Master’s judgment must be paid into court within 21 days or judgment will be entered for the 1st defendant against the 2nd plaintiff; the original judgment in favour of the 2nd defendant was erroneous because he had no counterclaim at the time and the defendants are permitted to amend to reflect the correct counterclaim recipient.

Citation
Profit Power Groups Ltd. and Another v. Healthy King Technology Co. Ltd. and Another
Parties
1st Plaintiff: Profit Power Groups Limited; 2nd Plaintiff: Hongda Enterprises (Groups) Limited; 1st Defendant: Healthy King Technology Company Limited; 2nd Defendant: Cheng Hsien-lung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 August 2002
Case Number
HCA4554/2001
Procedural Posture
Civil Action HCA4554 of 2001 — Order 14 (summary Judgment) Proceedings / Appeal/re Hearing in Court of First Instance (deputy High Court Judge in Chambers)
Outcome
Appeal allowed in part; Order 14 summary judgment set aside insofar as it precluded trial and the Master’s judgment to the 2nd defendant was corrected to reflect the 1st defendant as the proper recipient of the sum; defendants permitted to amend their summons to seek judgment on the amended counterclaim subject to...
Legal Topics
Summary Judgment/order 14, Counterclaim, Conditions Vs Warranties, Payment and Enforcement, Admissibility/weight of Expert Test Report, Costs
Source Language
EN
Contract Civil Procedure Commercial Law Evidence Summary Judgment/order 14 Counterclaim Conditions Vs Warranties Payment and Enforcement +2 more

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Parties

Profit Power Groups Limited

1st Plaintiff

Hongda Enterprises (Groups) Limited

2nd Plaintiff

Healthy King Technology Company Limited

1st Defendant

Cheng Hsien-lung

2nd Defendant

Procedural Posture

Civil Action HCA4554 of 2001 — Order 14 (summary Judgment) Proceedings / Appeal/re Hearing in Court of First Instance (deputy High Court Judge in Chambers)

Legal Issues

  1. 1 Whether the 2nd defendant had a valid counterclaim in the action when judgment was entered
  2. 2 Whether summary judgment under Order 14 was appropriate (i.e. whether defendants had no real and bona fide defence)
  3. 3 Whether the test report established a breach of condition entitling termination

Ratio Decidendi

The appeal is allowed in part because the mainland test report, although suspiciously timed, raised a triable issue about breach of condition/quality that could not be resolved on an Order 14 application; accordingly the plaintiffs demonstrated a real, if shadowy, defence requiring trial and the Master’s judgment must be paid into court within 21 days or judgment will be entered for the 1st defendant against the 2nd plaintiff; the original judgment in favour of the 2nd defendant was erroneous because he had no counterclaim at the time and the defendants are permitted to amend to reflect the correct counterclaim recipient.

Court Disposition

Appeal allowed in part; Order 14 summary judgment set aside insofar as it precluded trial and the Master’s judgment to the 2nd defendant was corrected to reflect the 1st defendant as the proper recipient of the sum; defendants permitted to amend their summons to seek judgment on the amended counterclaim subject to...

Orders

  • Master Lung's judgment sum of 583,350 HKD to be paid into court within 21 days
  • If payment into court is not made within 21 days, judgment to be entered for the 1st defendant against the 2nd plaintiff on the counterclaim and to be executed forthwith