TSUI TSUN WEI v. LAI WAI MAN t/a WAI YIP ENGINEERING CO AND OTHERS

TSUI TSUN WEI v. LAI WAI MAN t/a WAI YIP ENGINEERING CO AND OTHERS

The court held that the right of indemnity in s.24(2) extends to the principal contractor's own costs in the compensation proceedings (binding on this court by Court of Appeal authority notably Mak Wing Fai), refused to stay execution of the indemnity against R1 for want of sufficient material and ordered costs against R1 for the 26 September hearing.

Citation
TSUI TSUN WEI v. LAI WAI MAN t/a WAI YIP ENGINEERING CO AND OTHERS
Parties
Applicant: Tsui Tsun Wei; 1st Respondent: Lai Wai Man trading as Wai Yip Engineering Co.; 2nd Respondent: Shun Cheong Electrical Engineering Co. Ltd.; 3rd Respondent: Westco Airconditioning Ltd.; 4th Respondent: Penta-Ocean Construction Co. Ltd.
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
14 October 2005
Case Number
DCEC927/2004
Procedural Posture
Employees Compensation / Judgment
Outcome
Judgment entered by consent against all respondents for agreed compensation; court held s.24(2) indemnity extends to principal contractors' costs; stay of execution refused; costs ordered against R1 for hearing on 26 September 2005.
Legal Topics
Indemnity, Costs, Stay of Execution, Subcontractor Liability, Statutory Interpretation, Section 24(2) Employees Compensation Ordinance, Section 25(1)(b) Employees Compensation Ordinance
Source Language
EN
Employees' Compensation Civil Procedure Indemnity Costs Stay of Execution Subcontractor Liability Statutory Interpretation Section 24(2) Employees Compensation Ordinance +1 more

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Parties

Tsui Tsun Wei

Applicant

Lai Wai Man trading as Wai Yip Engineering Co.

1st Respondent

Shun Cheong Electrical Engineering Co. Ltd.

2nd Respondent

Westco Airconditioning Ltd.

3rd Respondent

Penta-Ocean Construction Co. Ltd.

4th Respondent

Procedural Posture

Employees Compensation / Judgment

Legal Issues

  1. 1 Whether the indemnity under s.24(2) of the Employees Compensation Ordinance extends to the principal contractor's own costs in the compensation proceedings
  2. 2 Whether execution of any indemnity award against the employer (R1) should be stayed pending determination of separate recovery or common law proceedings
  3. 3 Who should bear the costs of the hearing on 26 September 2005

Ratio Decidendi

The court held that the right of indemnity in s.24(2) extends to the principal contractor's own costs in the compensation proceedings (binding on this court by Court of Appeal authority notably Mak Wing Fai), refused to stay execution of the indemnity against R1 for want of sufficient material and ordered costs against R1 for the 26 September hearing.

Court Disposition

Judgment entered by consent against all respondents for agreed compensation; court held s.24(2) indemnity extends to principal contractors' costs; stay of execution refused; costs ordered against R1 for hearing on 26 September 2005.

Orders

  • Judgment entered against all Respondents with compensation assessed and agreed in the sum of $337,040.00 inclusive of interest
  • Credit given for $167,040.00 being advance payment already paid by R1 and received by Applicant