Hong Kong Case Law: Decisions & Judgments

Topic

Letters of guarantee

Legal area

Court

25 Aug 2000

NG YAT CHI v. MAX SHARE LTD. AND ANOTHER

Citation

NG YAT CHI v. MAX SHARE LTD. AND ANOTHER
Court

Court of First Instance
Case number

HCCW321/1996

The court refused the stay because the applicants failed to prove they would suffer irreparable prejudice in the two‑month period pending appeal: evidence did not show subsidiaries or co‑venturers were jeopardised, the company had cumulative losses and no employees, prospects of overturning binding authority (Vujnovich) were weak, and the timeliness of the application was acceptable; the summons to discharge two Letters of Guarantee was dismissed because the guarantees covered appeals and the petitioner remained an undischarged bankrupt, creating a real risk he would not satisfy adverse costs…
9 Jan 1998

B+B ASIA LTD v. STADARD CHARTERED BANK

Citation

B+B ASIA LTD v. STADARD CHARTERED BANK
Court

Court of First Instance
Case number

HCAL3/1998

A limited injunction was justified because, on the documents, the guarantee likely had expired and the timing and circumstances of the Employer's demand (after payment by the Employer) gave rise to a real prospect of fraud; these exceptional facts overcame the normal principle of non-interference with independent banking guarantees and warranted injunctive relief in the exercise of the court's discretion.
29 Apr 1987

GUANGDONG TRANSPORT LTD v. ANCORA TRANSPORT N.V. AND ANOTHER

Citation

GUANGDONG TRANSPORT LTD v. ANCORA TRANSPORT N.V. AND ANOTHER
Court

Court of Appeal
Case number

CACV19/1987

An interlocutory injunction restraining payment under an on‑demand bank guarantee will not be granted except in the limited circumstances where clear and convincing evidence of fraud exists; the judge found no such fraud on the facts (it was reasonably open that Ancora honestly believed its claim fell within 'freight'), and even if arguable G.T.L. could be adequately compensated in damages, so the injunctions should be discharged and the appeal is dismissed.
8 Jul 1981

HONG KONG ISLANDS SHIPPING CO LTD v CASTLE INSURANCE CO LTD AND OTHERS

Citation

HONG KONG ISLANDS SHIPPING CO LTD v CASTLE INSURANCE CO LTD AND OTHERS
Court

Court of Appeal
Case number

CACV178/1980

The Court of Appeal held that as a general rule a cause of action for general average accrues at the time of the casualty or expenditure (subject to defeasance by non‑arrival) and that the York/Antwerp Rules do not, by themselves, postpone accrual; however, certain Letters of Guarantee signed by insurers created new primary obligations and, on true construction, made insurer liability conditional on production of a general average adjustment so that limitation for claims against those guarantors ran from the adjustment; the court had discretion to join the shipowner but would not allow joinde…

Hong Kong Case Law

NG YAT CHI v. MAX SHARE LTD. AND ANOTHER

B+B ASIA LTD v. STADARD CHARTERED BANK

GUANGDONG TRANSPORT LTD v. ANCORA TRANSPORT N.V. AND ANOTHER

HONG KONG ISLANDS SHIPPING CO LTD v CASTLE INSURANCE CO LTD AND OTHERS