SUN AND SUN INTERNATIONAL LTD v. CHI KEUNG FASHION CO (a firm) AND ANOTHER

SUN AND SUN INTERNATIONAL LTD v. CHI KEUNG FASHION CO (a firm) AND ANOTHER

The court found the defendants had raised a bona fide arguable pro tanto defence of total failure of consideration in part to the extent of $22,500 in respect of the alleged unmerchantable goods; accordingly the master's order was set aside in part, judgment for the plaintiff was limited to $6,500, and unconditional leave to defend was granted for $22,500, because the issue required fuller adjudication at trial and delay did not render the Order 14 application unfair.

Citation
SUN AND SUN INTERNATIONAL LTD v. CHI KEUNG FASHION CO (a firm) AND ANOTHER
Parties
Plaintiff: Sun and Sun International Limited; 1st Defendant: Chi Keung Fashion Company (a firm); 2nd Defendant: Wong Kam Fat
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 June 1983
Case Number
HCA1790/1983
Procedural Posture
Bill of Exchange / Contract Dispute / Order 14 Summary Judgment Application (high Court Chambers)
Outcome
Order of the learned Master set aside in part; judgment entered for plaintiff in the sum of $6,500; unconditional leave to defend granted to defendants as to $22,500 of plaintiff's claim.
Legal Topics
Summary Judgment, Failure of Consideration, Merchantability of Goods, Partial (pro Tanto) Defence, Leave to Defend, Notice of Defects, Severability of Contracts, Delivery of Goods
Source Language
EN
Contract Law Commercial Law Bills of Exchange Civil Procedure Summary Judgment Failure of Consideration Merchantability of Goods Partial (pro Tanto) Defence +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Sun and Sun International Limited

Plaintiff

Chi Keung Fashion Company (a firm)

1st Defendant

Wong Kam Fat

2nd Defendant

Procedural Posture

Bill of Exchange / Contract Dispute / Order 14 Summary Judgment Application (high Court Chambers)

Legal Issues

  1. 1 Whether inordinate delay defeated plaintiff's right to proceed under Order 14
  2. 2 Whether alleged defects in goods constitute a defence to payment by cheque
  3. 3 Whether partial or pro tanto total failure of consideration is available as a defence to bills of exchange

Ratio Decidendi

The court found the defendants had raised a bona fide arguable pro tanto defence of total failure of consideration in part to the extent of $22,500 in respect of the alleged unmerchantable goods; accordingly the master's order was set aside in part, judgment for the plaintiff was limited to $6,500, and unconditional leave to defend was granted for $22,500, because the issue required fuller adjudication at trial and delay did not render the Order 14 application unfair.

Court Disposition

Order of the learned Master set aside in part; judgment entered for plaintiff in the sum of $6,500; unconditional leave to defend granted to defendants as to $22,500 of plaintiff's claim.

Orders

  • Order of the learned Master and the judgment set aside in part
  • Judgment entered for the plaintiff in the sum of $6,500