TRADITION (ASIA) LTD v. LEE CHEUK SHUN

TRADITION (ASIA) LTD v. LEE CHEUK SHUN

The court found the plaintiff's factual account of the alleged representation unreliable and rejected the misrepresentation claim; Clause 14.1 of the Employment Agreement precluded incorporation or reliance on alleged pre‑contractual terms or collateral agreements; the plaintiff had wrongfully terminated a two‑year fixed term but no consequential loss was proven, so only nominal damages (HK$100) were awarded on the defendant's counterclaim; plaintiff's primary and alternative claims were dismissed and a costs order nisi was made in favour of the defendant for defending the action.

Citation
TRADITION (ASIA) LTD v. LEE CHEUK SHUN
Parties
Plaintiff (hca2808/2006); Defendant (hca43/2007): Lee Cheuk Shun; Defendant (hca2808/2006); Plaintiff (hca43/2007): Tradition (Asia) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 December 2008
Case Number
HCA43/2007
Procedural Posture
Civil — Employment Contract, Negligent Misrepresentation and Commercial Dispute / Judgment at Trial (court of First Instance)
Outcome
Plaintiff's claim dismissed in its entirety; defendant's counterclaim succeeded only to nominal damages of HK$100; costs nisi that plaintiff pays defendant's costs of defending the action; no costs order for the counterclaim.
Legal Topics
Wrongful Termination, Entire Agreement Clause, Pre‑contractual Misrepresentation, Collateral Contract, Damages Under Employment Ordinance
Source Language
EN
Employment Law Contract Law Tort — Misrepresentation Commercial Law Wrongful Termination Entire Agreement Clause Pre‑contractual Misrepresentation Collateral Contract +1 more

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Parties

Lee Cheuk Shun

Plaintiff (hca2808/2006); Defendant (hca43/2007)

Tradition (Asia) Limited

Defendant (hca2808/2006); Plaintiff (hca43/2007)

Procedural Posture

Civil — Employment Contract, Negligent Misrepresentation and Commercial Dispute / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 Whether the defendant made negligent misrepresentations inducing the plaintiff to resign from prior employment
  2. 2 Whether alleged pre‑contractual representations were incorporated into the employment contract or excluded by an entire agreement clause
  3. 3 Whether implied terms or a collateral contract arose from negotiations

Ratio Decidendi

The court found the plaintiff's factual account of the alleged representation unreliable and rejected the misrepresentation claim; Clause 14.1 of the Employment Agreement precluded incorporation or reliance on alleged pre‑contractual terms or collateral agreements; the plaintiff had wrongfully terminated a two‑year fixed term but no consequential loss was proven, so only nominal damages (HK$100) were awarded on the defendant's counterclaim; plaintiff's primary and alternative claims were dismissed and a costs order nisi was made in favour of the defendant for defending the action.

Court Disposition

Plaintiff's claim dismissed in its entirety; defendant's counterclaim succeeded only to nominal damages of HK$100; costs nisi that plaintiff pays defendant's costs of defending the action; no costs order for the counterclaim.

Orders

  • Plaintiff's claims dismissed.
  • Defendant awarded nominal damages of HK$100 on its counterclaim.