SUNBROAD HOLDINGS LTD v. A80 PARIS HK LTD ( Formerly known as A80 ANOUFA PARIS HK LTD) AND ANOTHER

SUNBROAD HOLDINGS LTD v. A80 PARIS HK LTD ( Formerly known as A80 ANOUFA PARIS HK LTD) AND ANOTHER

The court refused summary judgment and granted unconditional leave to defend because the defendants failed to raise triable issues on pre-contractual negotiation and frustration (no credible evidence of acceptance of the conditional 10% concession and the pandemic/unrest did not fundamentally alter the nature of the lease), but there was a triable issue on mitigation/acceptance of repudiation; however the court granted an interim payment of HK$493,893.96 (50% of the principal claimed) as the landlord would likely obtain a substantial judgment and mitigation prospects were affected by the events and vacancy.

Citation
[2021] HKCFI 1422
Parties
Plaintiff: Sunbroad Holdings Limited; 1st Defendant: A80 Paris HK Limited; 2nd Defendant: Beauty Express Group Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 June 2021
Case Number
HCA735/2020
Procedural Posture
Commercial Lease Summons for Summary Judgment and Interim Payment / Interlocutory Paper Disposal; Application for Summary Judgment Refused; Defendants Granted Leave to Defend; Interim Payment Ordered
Outcome
Summary judgment refused; defendants granted unconditional leave to defend; interim payment ordered.
Legal Topics
Summary Judgment, Interim Payment, Lease Guarantee, Rent Arrears, Frustration of Contract, Pre Contractual Representations, Entire Agreement Clause, Mitigation of Loss
Source Language
EN
Contract Landlord and Tenant Civil Procedure Commercial Law Summary Judgment Interim Payment Lease Guarantee Rent Arrears +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 5 Authorities cited 9 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Sunbroad Holdings Limited

Plaintiff

A80 Paris HK Limited

1st Defendant

Beauty Express Group Holdings Limited

2nd Defendant

Procedural Posture

Commercial Lease Summons for Summary Judgment and Interim Payment / Interlocutory Paper Disposal; Application for Summary Judgment Refused; Defendants Granted Leave to Defend; Interim Payment Ordered

Legal Issues

  1. 1 Whether Tenant validly accepted Landlord's offer of 10% rent reduction
  2. 2 Whether the Tenancy Agreement was frustrated by social unrest and/or COVID-19
  3. 3 Whether the Landlord failed to mitigate loss by re-letting or accepting termination

Ratio Decidendi

The court refused summary judgment and granted unconditional leave to defend because the defendants failed to raise triable issues on pre-contractual negotiation and frustration (no credible evidence of acceptance of the conditional 10% concession and the pandemic/unrest did not fundamentally alter the nature of the lease), but there was a triable issue on mitigation/acceptance of repudiation; however the court granted an interim payment of HK$493,893.96 (50% of the principal claimed) as the landlord would likely obtain a substantial judgment and mitigation prospects were affected by the events and vacancy.

Court Disposition

Summary judgment refused; defendants granted unconditional leave to defend; interim payment ordered.

Orders

  • Defendants are granted unconditional leave to defend the plaintiff's claim.
  • Defendants shall pay to the plaintiff HK$493,893.96 by way of interim payment within 21 days.