Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Common law indemnity
  • 5 May 1987

    BEE KAY AND CO. (H.K.) LIMITED v. WOMBAT LINES INC. AND ANOTHER

    Citation
    BEE KAY AND CO. (H.K.) LIMITED v. WOMBAT LINES INC. AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCA10790/1982

    The Bank Indemnity was forged; the telexes and the letter constituted a binding agreement that goods would be released only against a Bank Indemnity; defendants released goods without a valid indemnity and thus breached that agreement and are liable to the plaintiffs; the common‑law indemnity principle relied on by defendants did not apply because the agents did not act honestly and bona fide with a valid indemnity (they had a worthless document), the contract was not an insurance/surety requiring utmost good faith, and the defendants did not satisfy the requisite standard (express term or be…