YU HON WAH ALEXIS t/a PERMANENT ENGINEERING CO v. Y M INTERNATIONAL REALTY LTD AND OTHERS

YU HON WAH ALEXIS t/a PERMANENT ENGINEERING CO v. Y M INTERNATIONAL REALTY LTD AND OTHERS

The default judgment against the 4th defendant was set aside because it was irregular: the pleaded cause (breach of warranty of authority) sought unliquidated damages but a final liquidated judgment was entered in breach of Order 19 rules, and independently the earlier default judgment entered against the corporate...

Source-derived case information.

Citation
YU HON WAH ALEXIS t/a PERMANENT ENGINEERING CO v. Y M INTERNATIONAL REALTY LTD AND OTHERS
Parties
Plaintiff: Yu Hon Wah Alexis trading as Permanent Engineering Company; 1st Defendant: Y M International Realty Limited; 2nd Defendant: Umidori Restaurant Group Limited; 3rd Defendant: Aegean Business Center Limited; 4th Defendant: Wong Wyman
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
22 January 2016
Case Number
DCCJ2371/2014
Procedural Posture
Civil Action for Recovery of Monies and Breach of Warranty of Authority / Appeal From Master on Application to Set Aside Default Judgment (setting Aside Appeal)
Outcome
Appeal allowed; default judgment entered against 4th defendant set aside
Legal Topics
Default Judgment, Warranty of Authority, Election Between Alternative Claims, Setting Aside Judgment, Assessment of Damages, Director Liability
Source Language
en
Contract Civil Procedure Company Law Damages Default Judgment Warranty of Authority Election Between Alternative Claims Setting Aside Judgment +2 more

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Summary, issues, holding and outcome

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Parties

Yu Hon Wah Alexis trading as Permanent Engineering Company

Plaintiff

Y M International Realty Limited

1st Defendant

Umidori Restaurant Group Limited

2nd Defendant

Aegean Business Center Limited

3rd Defendant

Wong Wyman

4th Defendant

Procedural Posture

Civil Action for Recovery of Monies and Breach of Warranty of Authority / Appeal From Master on Application to Set Aside Default Judgment (setting Aside Appeal)

Legal Issues

  1. 1 Whether the 4th defendant was personally liable or acting for a corporate defendant
  2. 2 Whether default judgment against the 4th defendant was irregular because claim against him sought unliquidated damages but a final liquidated judgment was entered
  3. 3 Whether the plaintiff's earlier default judgment against corporate defendants amounted to an election barring pursuit of alternative inconsistent claims against the 4th defendant

Ratio Decidendi

The default judgment against the 4th defendant was set aside because it was irregular: the pleaded cause (breach of warranty of authority) sought unliquidated damages but a final liquidated judgment was entered in breach of Order 19 rules, and independently the earlier default judgment entered against the corporate defendants constituted a conclusive election by the plaintiff to pursue the corporations to the exclusion of the 4th defendant, thereby barring the plaintiff's alternative inconsistent claim against him.

Court Disposition

Appeal allowed; default judgment entered against 4th defendant set aside

Orders

  • Default judgment entered against the 4th defendant Wong Wyman on 21 November 2014 is set aside
  • Order nisi that the 4th defendant's costs of the appeal and of the setting aside application be borne by the plaintiff, to be taxed if not agreed, with certificate for counsel