TEAMWAYS LTD v. WP ENGINEERING LTD

TEAMWAYS LTD v. WP ENGINEERING LTD

The court found the written quotation comprised 27 separately priced items and therefore the agreement was divisible; the expert evidence established 18 items had nil value and 3 items required repairs. The court discounted the contractual sums by 4% and awarded the plaintiff the discounted value of failed items (HK$256,416) plus repair costs (HK$8,000) and an assessed incidental loss (HK$10,000), totalling HK$274,416, plus interest and costs.

Citation
TEAMWAYS LTD v. WP ENGINEERING LTD
Parties
Plaintiff: Teamways Limited; Defendant: WP Engineering Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
16 March 2011
Case Number
DCCJ2753/2010
Procedural Posture
Breach of Contract (renovation Services) / Assessment of Damages Pursuant to Interlocutory Judgment
Outcome
Judgment for Plaintiff; damages awarded
Legal Topics
Repudiation, Refund of Deposit, Divisible Contract, Measure of Damages, Loss of Profits, Interest, Costs, Interlocutory Judgment
Source Language
EN
Contract Law Restitution Construction/building Contracts Civil Procedure Damages Law Repudiation Refund of Deposit Divisible Contract +5 more

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Parties

Teamways Limited

Plaintiff

WP Engineering Limited

Defendant

Procedural Posture

Breach of Contract (renovation Services) / Assessment of Damages Pursuant to Interlocutory Judgment

Legal Issues

  1. 1 Whether the contract was divisible or entire
  2. 2 Whether plaintiff was entitled to restitution/refund for unperformed items
  3. 3 Appropriate measure of damages (reinstatement cost vs diminution vs lost profit)

Ratio Decidendi

The court found the written quotation comprised 27 separately priced items and therefore the agreement was divisible; the expert evidence established 18 items had nil value and 3 items required repairs. The court discounted the contractual sums by 4% and awarded the plaintiff the discounted value of failed items (HK$256,416) plus repair costs (HK$8,000) and an assessed incidental loss (HK$10,000), totalling HK$274,416, plus interest and costs.

Court Disposition

Judgment for Plaintiff; damages awarded

Orders

  • Damages assessed in the sum of HK$274,416 to be paid by the Defendant to the Plaintiff
  • Interest at the rate of 8% per annum from the date of Writ until date of Judgment and thereafter at Judgment rate until payment