Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Enforceability of indemnities

Legal area

Court

15 Mar 2005

CHINA UNITED HOLDINGS LTD AND ANOTHER v. JOHNSON STOKES & MASTER (A firm)

Citation

CHINA UNITED HOLDINGS LTD AND ANOTHER v. JOHNSON STOKES & MASTER (A firm)
Court

Court of Appeal
Case number

CACV135/2004

Clauses 8 and 10 of the guarantees did not render the counter indemnities void or not immediately enforceable; the guarantees did not create a tripartite agreement making the Bank a party to or the sole beneficiary of the counter indemnities, and therefore the two companies had immediately enforceable indemnity claims against East Champion; appeal dismissed.
2 Apr 2004

CHINA UNITED HOLDINGS LTD AND ANOTHER v. JOHNSON STOKES & MASTER (A firm)

Citation

CHINA UNITED HOLDINGS LTD AND ANOTHER v. JOHNSON STOKES & MASTER (A firm)
Court

Court of First Instance
Case number

HCCL42/2003

The court held that as a matter of construction the counter indemnities created immediate enforceable indemnity claims by Asia Standard and Paul Y ITC against East Champion; the recitals did not incorporate the guarantees into the loan agreement nor create a tripartite contract making the borrower privy to clause 10; therefore the counter indemnities were not void or of no effect by reason of clause 10 and the plaintiffs' primary pleaded case that East Champion had no liability was false.